Being Underinsured – What It Means For Tradies
Going with an insurance policy with the cheapest premium might seem like a great way to save money, but it can mean that you leave yourself underinsured.
This is going to cost you a lot in the long run.
Not having the correct amount of cover for you or your business is surprisingly common, especially in the trade industry. However, this can have dire implications and not just for you either.
Underinsurance can affect your customers, your business, employees and you.
How Underinsurance Affects Your Customers
Here is an example. You are doing work at someone’s home and an accident occurs that results in injury to the homeowner or damage to their property as a result of the work.
Who is going to pay for it?
As the damage was caused by the work you were doing, whether directly or indirectly, then you are at fault and could be liable. If you have the appropriate cover, you’ll be able to make a claim on your Public Liability Insurance and get your customer the compensation they deserve.
However, if you are underinsured, the process will be drawn out and may have to come out of your pocket.
In the case that you don’t have the money, your customer will have to foot the bill for the damage.
What It Means For Your Business
If something happens to your business that affects its operations, such as equipment being damaged or stolen, or an injury to yourself or employees, then business services will be affected.
Having to halt your operations while you sort out the issue or come up with a solution is going to have some economic consequences for your business. Income will stop, you may not be able to keep running the business, and you won’t be able to pay your employees either.
With the appropriate insurance, these matters are sorted out quickly so you can get back to work ASAP.
The Impact On You
Ultimately, the biggest impact of being underinsured would be on you.
Without adequate Income insurance, you won’t have enough income in the event of an injury. Without Tool Insurance, you’ll have to pay for the replacement of your stolen or damaged tools yourself. Should any damage come to a third party as a result of your work, it means that you will have to foot the bill.
To avoid underinsurance, the best course of action is to get a qualified insurance expert to go over your policy.
At Tradesure, our brokers have a wealth of experience and knowledge in the trades industry. We’ll work with you to get the cover you need and to prevent any unexpected costs down the track.
Let’s talk
For an honest assessment of the insurance cover you should be looking for, talk with our friendly and professional team today. Contact Us.
