Most independent tradies around Australia are self-employed, as a solo enterprise or alongside a couple of other people. In this case, they may rely on their own expertise and experience to drive the company forward and may be used to working long hours every day to keep up with demand. Of course, they understand that there are risks associated with running a business like this and ensure that they have an adequate amount of public liability insurance in place as a safeguard. However, they may be missing an element of insurance that is related to themselves on a personal level. Why could this represent a significant, financial risk?
When a tradie employs another contractor, they are duty-bound by law to cover them with workers' compensation insurance. This means that if that individual were to be injured on the job, then they would automatically be covered against unexpected losses or medical costs.
However, the boss may not classify themselves as an employee of the company or may not operate a legal structure like this in any case. This means that they may not have any protection whatsoever when it comes to a personal accident and could face some extreme hardship in the unfortunate event. Imagine what would happen, for example, if they were to fall off a ladder and sustain a back injury? Typically, this type of injury could take many months to clear up.
Not only that, but they may not have any recourse at all, should they be struck down by a lengthy illness that renders them incapable of work. In the meantime, however, regular bills would continue to mount up and they would have to pay them, even though they could not bring in any revenues to help.
Accident and Illness Insurance
In this case, it is very important for a self-employed tradie to think about getting personal accident and illness insurance, which is a policy specifically designed for individuals in that situation. These policies can be tailored to the risk faced by that individual so that benefits are paid in the unfortunate event of an illness or accident and the operation can survive in the interim.
If you want further information about this type of coverage, talk with a provider of trade insurance first. They will be able to advise you of the alternatives and put in place the coverage as soon as possible.Share