Post taged with "public liability insurance"
Insurance tips for chippies
Posted on December 17th, 2014
No one likes having to cough up for insurance each year.
But if you work for yourself as a carpenter, you’d be crazy to risk everything by not having insurance.
All you can do is make sure that you’re getting the most competitive premiums available, as well as receiving good value on the money you’re spending.
With that in mind, we’ve put together a list of tips for chippies and their insurance.
Get the right cover
The first tip is simply to make sure you have the right types of cover in place.
There are plenty of different insurance types for carpenters, and there’s no point paying for cover that you don’t need.
For example if you took out public liability insurance as a subbie, but now you’re back on wages, you probably don’t need to be paying for that policy any more.
If you’re unsure about which policies you do and don’t need, the best option is to run through your situation with your broker and they will be able to provide you with some good advice.
Having the right cover can also save you money in the event of a claim.
Even if you can’t save any money on your upfront premiums, at least having the right cover will ensure that you are fully covered if or when you need to make a claim.
Keep your details up to date
Keeping your details current with your insurance provider isn’t just a good idea; it’s actually one of your obligations under the duty of disclosure which applies to all policies.
It can also potentially save you money.
For example if you were turning over $300,000 a year and using a couple of subbies when you first took out your policy, the cost would have been relatively high.
But if you’ve scaled back to working on your own without subbies, and now turning over $100,000 per year from your own carpentry work, you could be saving up to $1,000 a year on insurance.
The broker and insurance company have no idea unless you tell them though, so make sure you let them know of such changes so they can adjust your premium.
And remember, pricing changes don’t just happen at renewal time. If you change your policy part way through, you will get a pro-rata refund covering the remaining policy term!
As with the first point, keeping your details up to date can also save you at claim time.
For example if you try to make a claim for something which you hadn’t kept your insurer informed of, they may have to deny the claim.
But by keeping the insurer informed you will ensure that everything goes smoothly at claim time.
Choose your payment method
The way that you pay for your business insurance can affect how much you pay for it.
The two main options here are annually and monthly.
For example if carpenter A is paying annually and carpenter B is paying monthly, chippie B could be paying anything up to 15% more for his insurance.
This may not make a huge difference on small premiums, but if you have a larger insurance package this percentage can make a big difference.
I’ve saved possibly the best for last, which is to shop your insurance around.
Not all insurance companies charge the same premiums to carpenters.
For example one broker we found charges just $410 for $5 million public liability cover, whilst another charges a whopping $718!
Most of the brokers and insurers we looked at were around $400 – $500 for a basic policy to suit a sole trader carpenter with less than $100k turnover.
By shopping around you could potentially save hundreds on your carpenters insurance policies.
One final tip when shopping around is to make you’re still getting the right cover for your needs.
A $410 public liability policy may sound great, but if you’re doing extra types of work not covered by the standard policy, then you could be well out of pocket at claim time.
So by all means shop around and find the best deal, but make sure it still covers all of your carpentry (and potentially non-carpentry) business activities.
As always we believe that the best way to do this is by using an insurance broker who specialises in tradespeople, but the same principles apply even when going direct to the insurer.
Public Liability Insurance for Carpenters
Posted on July 26th, 2012
With so many carpenters working as subcontractors and running their own businesses, many are required to hold public liability insurance.
Most of the larger building companies in Australia will require that any carpentry subcontractors must hold public liability insurance before they are able to come onto the worksite.
Whilst most carpenters know about public liability insurance, few have a good understanding of what this insurance actually covers and how it can help them.
In this guide we will take a look at how public liability insurance can benefit carpenters.
What Is Public Liability Insurance?
So what is public liability insurance? Essentially it is a form of cover which is designed to protect businesses and their owners in the event that their business activities cause property damage or personal injury to someone else.
Ordinarily if your actions resulted in loss or damage to another person you would be liable for financial compensation, but with the right public liability policy you can rely on the insurance company to cover the costs.
Examples of Claims
The two main events covered by public liability insurance are property damage and personal injury.
A property damage claim for a carpenter can involve damage caused on a worksite. This could be damage to the property you are working on, or damage to surrounding property such as another person’s vehicle whilst moving timber.
More serious claims generally involve personal injury. A claim could involve faulty workmanship which results in an injury to an occupant of the structure or any other member of the general public.
Why Do Carpenters Need It?
Any work in the manual trades involves an element of risk. Unfortunately people suffer damages around Australia every day. Even those carpenters who take all the necessary precautions cannot avoid these risks completely.
As a self-employed or subcontracting carpenter you are essentially liable for all of your own actions. If you cause damage or personal injury you are liable for the costs involved, and you cannot push that responsibility onto the building company.
Because of this, most building and construction companies will require that all of their carpentry subbies hold public liability cover.
Public Liability Quotes for Carpenters
Any insurance broker should be able to provide quotes on public liability cover, however many carpenters find that it is better to use a broker who specialises in trade insurance.
One such company is Trade Risk, who specialise in insurance for carpenters and other tradesmen around Australia.
By using a specialist carpentry insurance firm you can be confident that you are dealing with a company that understands your business and the risks that you face each day. They will help you to choose a policy that suits your needs as well as your budget.
For more information please contact your broker or get in touch with the team at Trade Risk.
Posted on July 24th, 2012
Carpenters are the backbone of the building industry.
Of course it takes plenty of different trades to build a house, but carpenters arguably have the biggest impact on a quality build.
Part of being a carpenter, especially a self-employed one, is the need for certain types of insurance.
A carpenter working for himself as a sub-contractor or business owner will be required to hold a range of insurance types. In this guide we will take a look at the different types of insurance and when they are required.
Carpentry Insurance Requirements
If you are doing carpentry work on large worksites, you will often find that the building company has mandatory insurance requirements for carpentry contractors.
At a minimum most worksites will require trade public liability insurance for all carpenters. Some worksites will also require that self-employed chippies have income protection or an equivalent accident and illness policy in place.
Public Liability Insurance
Public liability is the most commonly required insurance for carpenters in Australia.
Many carpenters working on construction sites will have mandatory requirements for public liability. If you are doing smaller job you may not technically ‘need’ the insurance, however it is still a very good idea given the protection it provides.
Public liability insurance will protect you financially if you work results in property damage or personal injury to another person.
Ordinarily you would be liable for the financial costs of any such event, but with a public liability policy you may be able to rely on the insurance company to cover the costs.
Income protection is mandatory for many carpenters working on larger building sites, but it is also a very good idea for any carpenter who relies on their income to survive.
This form of insurance is especially important for chippies who work for themselves, as they will not have access to sick leave or worker’s compensation.
But even sick leave is only good for a few weeks off the tools. If you are unable to work for a few months or a few years, only an income protection policy can give you proper protection.
Carpenter Insurance Quotes
Quotes for carpenters insurance can be obtained from most insurance brokers or direct from the insurance companies.
If you are looking for quotes on your insurance, a good option is to use an insurance broker who specialises in trade insurance. They will generally know which policies suit carpenters best, and will be able to get you a competitive premium on your insurance needs.
One such insurance group is Trade Risk. They specialise in insurance for all tradesmen including carpenters all over Australia. You can obtain quotes via their online quote form, or you can get in touch with them to speak with a qualified insurance broker.
Although you may be a skilled and careful tradie who takes pride in his work, there is always the potential for the unexpected to happen. Having a good carpenter’s insurance package in place could be the best investment you make in your business.