Why Income Protection Is Just as Important as Public Liability Insurance

For most tradies, Public Liability Insurance is a no-brainer. It protects your business from claims made by third parties for injury or property damage caused by your work. But what if you’re the one who’s injured and can’t work? That’s where income protection insurance comes in and it’s just as essential.

In this article, we’ll explore how Public Liability Insurance and income protection work hand in hand to safeguard both your business and your livelihood. We’ll also cover the role of Tradies365 in helping you choose the right cover.

Understanding Public Liability Insurance

Public Liability Insurance protects your business if a third party suffers personal injury or property damage due to your work. Whether you're a carpenter, plumber, electrician, or builder, this insurance is often required by law, job contracts, or clients.

What It Covers:

• Injury to Others: If a client trips over your tools and gets hurt, this insurance covers their medical expenses and any legal claims.
• Property Damage: Accidentally drilling into a water pipe or damaging a customer’s wall? Public Liability Insurance pays for repairs or compensation.
• Legal Fees: If you’re taken to court, this policy covers the cost of your defense even if you weren’t at fault.

What It Doesn’t Cover:

• Your own injuries or illness
• Damage to your own tools or property
• Employee injuries (these are covered under workers’ compensation)

Tradies365 frequently assists trade professionals in selecting comprehensive liability cover that fits their risk profile and project requirements.

Why Income Protection Insurance Deserves Equal Priority

While Public Liability Insurance protects your business from external claims, income protection insurance protects you. If you’re unable to work due to an accident or illness, this policy ensures you still receive a portion of your regular income so your financial life doesn’t fall apart.

Key Benefits:

• Pays Up to 75% of Your Income: If you’re off the tools for weeks or even months, this insurance helps pay your rent, mortgage, bills, and groceries.
• Covers Illnesses and Injuries: Whether it’s a back injury from heavy lifting or a long-term illness, you’re protected.
• Essential for Self-Employed Tradies: Without employer sick leave or workers’ compensation, income protection is often your only safety net.

Tradies365 recommends that all self-employed tradies and subcontractors consider pairing income protection with their existing public liability policy.

How Both Insurances Work Together

Let’s say you're on a job site and accidentally injure a passerby. Public Liability Insurance will cover their medical expenses and any legal costs. But if you fall from a ladder and can't work for six months, income protection kicks in to help you meet your own financial obligations.

Together, these policies protect:

• Your business reputation (via Public Liability Insurance)
• Your personal income and lifestyle (via income protection insurance)

This combination is what Tradies365 refers to as a “complete cover strategy” ensuring that both your public responsibilities and personal finances are covered.

Best Practices for Tradies Managing Both Policies

To ensure both types of cover work for you, follow these best practices:

1. Review Your Coverage Annually

Your business might have grown, taken on new services, or expanded into new areas all of which can impact your insurance needs.

2. Don’t Buy on Price Alone

Cheap policies often come with limited coverage or long waiting periods. Focus on value, not just cost.

3. Use a Trade Insurance Specialist

General insurance providers may not understand the unique risks of your trade. A provider like Tradies365, who specialises in cover for Australian tradies, can offer tailored advice and packages.

4. Consider Bundling

Some insurers offer discounts when you bundle Public Liability Insurance with income protection or tool cover. This can simplify management and save you money.

Conclusion: Two Pillars of a Secure Trade Business

In the trades industry, accidents can happen at any time to others or to you. That’s why both Public Liability Insurance and income protection are vital. One protects your business; the other protects your income.

By having both policies in place, you’re not just complying with job site requirements, you're building a foundation that supports your business and family, no matter what happens.

Need help deciding the right coverage mix? Talk to Tradies365 we’ll walk you through your options and help you choose cover that matches your trade, income, and lifestyle.