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The trades and construction industry is a major user of insurance in Australia, and carpenters make up a large percentage of that group.
The insurance requirements for carpenters are generally no different to other trades businesses, however there are a couple of things to look out for.
In this guide we will take a look at the various forms of carpenter’s insurance available, including of course public liability which is our speciality.
Insurance Requirements for Carpenters
Many subcontractors and self-employed carpenters will be required to hold insurance before they are allowed to enter certain worksites.
As far as mandatory insurance goes, this is more common on sites managed by the large building and construction companies.
Either way, insurance is a good idea for any carpenter working as a subbie or for themselves. We have detailed some of the most common forms of cover below:
This is without doubt the most popular forms of insurance used by carpenters in Australia. This is partly due to it being mandatory on many worksites, and also because the cover is simply a good idea.
Public liability is designed to protect you and your business from the financial risks associated with causing property damage or personal injury to other people as a result of negligence.
It is only subcontractors and self-employed carpenters who will generally require public liability insurance. Employees will generally be covered by their employer’s policy.
Income protection is another form of cover which is mandatory on many worksites around Australia for subbies and self-employed carpenters.
As subbies and self-employed carpenters are not covered by workers compensation or sick leave, income protection is often the only form of protection they have against not being able to work and earn a living.
Income protection is sometimes referred to as accident and illness insurance, especially amongst tradies. Although the two forms of cover are similar, there are also some very important differences.
These covers cannot be cancelled, so unlike other covers if you get cancer the insurer can cancel your policy at the end of the period insurance. But with Income protection they are legally obligated to offer you renewal so long as you make payment, and as an added bonus you can get cover to get paid out to the age of 65.
For more information on this form of cover it is best to speak with a qualified financial adviser. The team at Tradesman Insurance are able to help carpenters with their income protection needs.
Accident and/or Illness Insurance
Need the cheapest cover just to get on site? You can get a1 year accident only policy – cheap and cheerful, once paid, you can supply your certificate of currency to your employer or project manager to show that you have some cover in place to cover your income.
This cover can also be extended to cover illness insurance and you can choose a 1 or 2 year option.
Although tool insurance is not a mandatory form of cover for carpenters, it is still a very popular insurance given the risk of having your tools stolen.
As a carpenter it is easy to have in excess of $10,000 worth of tools, especially if you have a couple of decent power tools in your collection.
Tool insurance can be a very cost-effective way of protecting your assets against various risks including theft, fire and storm damage and vehicle accident damage.
Here at www.publicliabilityinsurance.com.au we can assist with quotes on public liability for carpenters via our online quote request form. If you also require quotes on tool insurance and income protection just let us know.
For more information, please contact your insurance broker, or if you don’t already have one please contact us and we will put you in touch with a suitable professional.