What Mistakes Do Tradies Make Buying Insurance?

Buying tradie insurance looks simple, but a few common mistakes can leave you with cover that doesn't fit your work. Here are five to watch for.

Buying cover that doesn't fit your work

You may think that you're doing a good thing by taking out insurance for your business, but there are some mistakes that can cause a lot of trouble. This is why it's so important to make sure that the insurance you buy is suitable for your business.

It's important to note that all businesses are different and have different needs when it comes to riskier activities or larger assets. For example, a business with high turnover or expensive machinery carries more risk than a one-person outfit with a few hand tools, so it may need more than basic cover.

If you're not sure whether you need additional cover, talk to your broker about what's suitable for your business. You can speak with our team at Tradies365 to learn more about which policies may suit you.

Only looking at the price

Another mistake is to only look at the price of a policy. Look at what you're getting, not just how much it costs. Here are some things you can do:

• Compare what each policy covers: the limits, the excess and the exclusions, not just the premium.
• Ask your broker to explain the differences between the quotes they get from insurers.

For a step-by-step approach, see how to compare insurance policies.

Not knowing what cover they have

It's important to know what cover you have before you can start comparing. Once you've got that information, make sure you understand how your existing policy compares with a new one. You'll also want to read all the details that may apply to your situation, so make sure that you fully understand your policy and any exclusions or restrictions it might have.

Using multiple insurance brokers

It helps to find a broker who understands your business. There are many brokers out there, and you could be tempted to use more than one. But that can cause problems for you down the line:

• Spreading your policies across several brokers can make it harder to see gaps or overlaps in your cover.
• Each broker only sees part of your business.

Trying to DIY their business insurance

One of the most common mistakes people make when buying tradie insurance is trying to DIY their business insurance. It's important to be aware of what you are covering and what you are not covering, but if there is something you don't understand, ask a professional. If a policy seems too vague or confusing, get someone to explain it to you (preferably in plain English). You can't do it all yourself: this may take up a lot of time that could be spent working and making money. Read more about why use an insurance broker.

Looking for tradie insurance?

If you have questions about your cover, contact us.