One of the most important parts of trade insurance is coverage for your tools. Without your tools, you can't work and not being able to replace them quickly can have a significant impact on your business. Not only are you without an income but you will also let down clients who are wanting their work completed. If you have employees that use the tools, the impact can be even worse because you are still paying wages while they can’t work.
Knowing the Risks
When you’re a small business owner or sole trader, you may be tempted to buy a standard business insurance policy, possibly even one online. What you may not have considered is that the policy may not be right for your business. Small businesses aren’t generic, and so their insurance policies shouldn’t be either. One business will have assets that aren’t covered by a standard policy, and another business won't get the liability protection it requires. Take out the wrong policy and you could find yourself out of pocket or in financial hardship.
Insurance for your Tools & Equipment
If your tools move around from site to site, they are at risk of being stolen from the back of your ute, accidentally left on site or damaged beyond repair. You need an insurance policy that allows you to quickly replace your lost or damaged tools so you can get back on the job. Your hard working tools might not look much, but they can be valued in their thousands. Know what tools you own and what it would cost if you had to replace them all.
If you own more than hand tools, you may need plant and equipment cover. A bobcat, loader or excavator need insurance in case they are damaged or destroyed but also cover any damage they may cause. Third party liability will ensure you aren’t out of pocket for thousands after a mishap with someone else’s property.
Other Parts of Trade Insurance
While it’s important to insure your tools and ute, you are even more valuable than your tools of the trade. Small business owners don’t have an employer who will provide them with an ongoing salary if they are sick and can’t work. Unfortunately, it’s all up to you. Due to the type of work you do, you are also at risk of being injured and unable to work after an accident on site. Income protection is a must to ensure you have some income during time off work for an injury or illness.
Also, your business may face an investigation by regulators or government bodies which are expensive to defend and take you away from your everyday work. Management Liability will cover you for this as well as employee issues of unfair dismissal claims and injury to third parties.
Knightcorp Knows Trade Insurance
Trade insurance is something we specialise in. We have insured most types of trade related businesses so we know the questions to ask to understand all the risks associated with your business. Knightcorp then contacts its trusted insurers to get the right cover for you.
A good insurance broker can also maintain your insurance as your business changes and act as your advocate during a claims process. Contact a Knightcorp trade specialist consultant on 1300 656 001 or send us a message