Is your trade business booming? - by Channelle Ricketts
Recent reports are showing that Aussies are spending up big on home improvements and renovations. Skilled trades are in demand. The Australian Government is also adding stimulus into the building and trades sector via the HomeBuilder Program targeting both new construction and renovations to existing premises.
How has your Trades business changed in 2020? Are you too busy to be able to answer the phone?
Whether you are a plumber, carpenter, builder, plasterer or tiler. I can imagine that your business has changed in 2020.
Are you underinsured?
Underinsurance is when insurance is taken out for less than the true value of the item being insured. Your sum insured may not reflect a true an accurate replacement cost of the assets.
Underinsurance in Australia impacts lots of businesses. Being under-insured can lead to, in the worst cases, to your insurance claims being denied or you having to meet the shortfall between your replacement costs and your insurance limits.
With your business booming, have your insurance limits and coverage levels kept pace? Do your insurance limits match your new reality? This can happen without you really realising, you take on a few more staff, get some more tools and equipment to complete your next job, take on bigger jobs with more complexity and size. Before you know it, your great growth can be exposed and at risk if your insurance limits have not kept pace.
Three areas of insurance Tradies need to consider:
1. Business Interruption
There is nothing worse than having your business interrupted due to unforeseen circumstances. Business interruption insurance may help to smooth out your cash flow and enable you to keep trading whilst you get your business back on its feet.
2. Commercial Motor Vehicle
Your vehicles are an essential part of your business. If you were forced to replace them, would your coverage be sufficient? You want to keep your vehicles well serviced and operational so that you can get around and be able to deliver great work without having to worry about your vehicle.
3. Tools of Trade
Your tools are valuable and expensive if you have to replace them. However, tools can and do get stolen from time to time. It’s unfortunate that it happens, but it is a reality of working with great tools. Make sure your tools are coverage so if they do get stolen, you’ll be able to back working in no time.
With everything you have going on, connect with an insurance expert to help take the complexity out of organising your trades insurance. Working with an insurance professional makes smart business sense!