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One Silly Mistake Cost $50,000

Saved by our Insurance!

... well, that could have ended my career. I have an electrician business with my long-time business partner. 

Last year, we were doing a job on a building which featured motorised vents. 

We’ve been doing jobs like this for over 20 years, and it was something we considered an easy gig and could do with our eyes closed. Despite this, somehow the wiring was reinstalled incorrectly, and when the motorised vents were next used, the motor operating them went in reverse

This caused over $50,000 of damage to the building. The building owner (understandably) went nuts and demanded we compensated them and repair the damage caused. How could we have made such a mistake? I had done this type of work literally hundreds of times. 

Our partnership isn’t huge, so a $50,000 outlay for that month would most likely have put us out of business. 

Thankfully our Trade Insurance organised through Abbie, our Insurance Broker from National Insurance Brokers had included public liability insurance, and the cost of the damage was covered by the policy. We didn’t really think we needed it (and to be honest, I forgot we had it) but Abbie had strongly recommended that it was a risk we must cover. 

Without having had that insurance in place, this incident could have wiped out many months’ of profit for us, or even worse, closed our doors. Abbie had determined the right amount of cover at a great price for us, and basically, it allowed us to keep trading. 

No matter how good or how experienced you are, mistakes will happen from time to time. This is one of those rare occasions where things really worked out. 

Tradies Insurance is no longer an option in my mind, it’s an essential tool. 

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Abbie Wilson, National Insurance Brokers, ABN 22165146789, AFSL 233750

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