What Insurance Do High-Risk Trades Need?

Certain occupations are considered high risk trades, where workers are exposed to a greater likelihood of injury or illness due to the nature of their work. These occupations include roofers, scaffolders, and demolition contractors, among others. These workers face numerous hazards, including falls, electrocution, and heavy machinery accidents, which can lead to serious injury or even death.

Importance of insurance for high-risk trades

Due to the high risk nature of these occupations, it is important for workers and their employers to have appropriate insurance coverage to protect against potential losses. Insurance coverage is crucial for high-risk trades because it can provide financial protection in the event of an accident or injury.

Insurance for roofers

Roofing work involves significant risks, including falls, exposure to extreme temperatures, and hazards associated with using power tools and heavy equipment. Insurers often ask roofers about hot work, such as torch-on membranes, because of the fire risk, and some policies set conditions for a roof you have opened, such as making it watertight at the end of each day. Read more about roofers insurance. Insurance options for roofers include:

• Workers' compensation insurance, which can provide benefits for medical expenses, lost wages, and disability payments to employees who are injured or become ill due to their job.
• Public liability insurance, which can protect against claims made by third parties, such as customers or bystanders who are injured as a result of the business's activities.
• Tool insurance, which can cover the business's tools and portable equipment, up to the policy limits. Work vehicles are a matter for commercial vehicle insurance.

Workers' compensation insurance is particularly important for roofers, as falls are one of the biggest risks in the industry. In the event of a workplace injury, workers' compensation insurance can provide benefits for medical treatment, rehabilitation, and lost wages. Depending on the state or territory scheme, injured workers who are unable to return to work may also be entitled to further compensation.

Insurance for scaffolders

Scaffolding work is inherently risky, with workers exposed to the risk of falls, electrocution, and other hazards, and a tube, fitting or tool falling from a scaffold can injure someone below. Insurers also ask whether the people erecting, altering and dismantling scaffold hold the right class of high risk work licence. Insurance options for scaffolders include:

• Workers' compensation insurance, for injuries to employees
• Public liability insurance, for injury to the public and damage to other people's property
• Tool insurance, for tools and equipment; scaffold stock may need its own cover

Workers' compensation insurance is particularly important for scaffolders, as falls from scaffolding are one of the biggest risks in the industry. In the event of a workplace injury, workers' compensation insurance can provide benefits for medical treatment, rehabilitation, and lost wages.

Insurance for demolition contractors

Demolition work is inherently risky, with workers exposed to the risk of falls, fires, explosions, and other hazards. Workers' compensation insurance is particularly important for demolition contractors, as they are exposed to a variety of hazards, including exposure to harmful substances, falling objects, and machinery accidents.

Insurance for earth movers

Earth movers are involved in heavy machinery operations, such as excavating and moving large quantities of dirt, rocks, and other materials. Due to the nature of their work, they are exposed to various risks, including accidents, equipment breakdowns, and property damage. Therefore, it is important for both workers and companies in the earth-moving business to have appropriate insurance coverage to protect against potential losses.

• Workers' compensation insurance can provide cover for medical expenses and lost wages for earth mover employees in case of workplace injuries.
• Liability insurance can cover potential claims for injury or property damage caused by the business's work, including work it has already completed.
• Cover for the machines themselves, such as excavators and loaders, is a separate question from tool cover, so ask about it on its own.

Given the high risk involved in earth-moving operations, it helps to work with an insurance broker who understands the industry's risks and can compare policies from insurers. Appropriate insurance cover lets earth mover businesses focus on delivering quality services to their clients. Read more about earthmoving insurance.

Workers' compensation insurance

Workers' compensation insurance is a type of insurance that provides benefits to employees who are injured or become ill due to their job. Under Australian law, employers must have insurance to cover their workers in case they get sick or injured because of work (Safe Work Australia). Benefits of workers' compensation insurance can include:

• Medical benefits: Workers' compensation insurance can cover medical treatment related to workplace injuries or illnesses, including doctor visits, hospital stays, and prescription medications.
• Wage replacement benefits: Workers' compensation insurance can provide partial wage replacement benefits to employees who are unable to work due to their injury or illness.
• Disability benefits: Workers' compensation insurance may provide disability benefits to employees who are unable to return to work due to their injury or illness.

Each state and territory has its own workers' compensation scheme, governed by different laws (Safe Work Australia), and employers must get workers compensation insurance from an authorised insurer (business.gov.au). Check with your state or territory regulator how to get it. To obtain workers' compensation insurance, employers are typically required to provide information about their business operations, number of employees, and previous claims history. Premiums for workers' compensation insurance are typically based on the employer's payroll and the type of work performed by employees.

What a policy covers depends on its wording, limits and excesses, and the insurer decides whether to offer cover and whether a claim is paid. Read the policy wording before you decide.

Risk management strategies

In addition to insurance coverage, high-risk trades such as roofers, scaffolders, and demolition contractors can benefit from risk management strategies to minimise the likelihood and severity of workplace accidents and injuries. Risk management strategies can include:

• Compliance with WHS laws: Safe Work Australia develops the model work health and safety (WHS) laws and codes of practice, and the Commonwealth, states and territories regulate and enforce WHS laws (Safe Work Australia), for example through inspections and penalties. In Western Australia the regulator is WorkSafe WA. Compliance with WHS laws can help keep workplaces safe for employees and can minimise the risk of workplace accidents and injuries.
• Safety training and protocols: Employers can provide safety training and establish protocols for safe work practices to minimise the risk of workplace accidents and injuries. This can include training on the safe use of equipment, proper lifting techniques, and hazard identification and mitigation. When they quote, insurers usually ask about your licences and safety procedures, so keep licences and training records up to date.
• Liability insurance: Liability insurance can provide protection against claims made by third parties, such as customers or bystanders who are injured as a result of the business's activities. This can help minimise the financial impact of such claims.
• Contractor insurance: Contractor insurance is public liability for contractors and subcontractors, often with a higher limit when a head contract asks for one. Professional indemnity is a separate cover, for advice and design.

By implementing risk management strategies, employers can help minimise the likelihood and severity of workplace accidents and injuries, protecting their employees and their business's financial well-being. Compliance with WHS laws and safety training can help make sure that employees have the knowledge and skills needed to work safely and effectively. Ultimately, an approach to risk management that includes insurance coverage and risk management strategies can help high-risk trades protect their employees, their business, and their reputation.

If you work in a high-risk trade and want to talk through your insurance, contact Tradies365. Our brokers can ask insurers to quote on covers such as public liability insurance and contractor insurance, and arrange workers' compensation in every state and territory. Contact us to talk through the cover for your work, or see the trades we arrange insurance for.