When you set up as a tradie, you'll have had certain insurance needs. While the business insurance you took out at the time covered you then, it may not give you such good coverage now. However, you may not have thought about changing your policy just yet.
If your business is flourishing now, then you may need to upgrade your trade insurance coverage. When is this a good idea?
You've Started Hiring
If you worked alone when you started up, then you were the only person you needed to think about in insurance terms. However, if you've started employing people as your business has grown, then your insurance needs have changed. For example, you may need to put a worker's comp program in place to cover your crew if you haven't done so already.
If you're growing fast enough, then you may have bought extra vehicles so your team can work on multiple sites and jobs at once. These vehicles need insurance, too.
You've Bought More Tools and Equipment
While you may have had basic tools when you started your business, you may have upgraded some of these tools or bought new ones. As you take on bigger jobs or diversify, then you may have needed to invest in new equipment. For example, you may have added a trailer to your ute to give you more space to carry all your kit to and from jobs.
You may have put tools and equipment coverage in place when you set up your policy, but the cover you got may not match the dollar value of your kit now. You may need to increase this sum to include new purchases.
Your Circumstances Have Changed
If your business has really taken off, then your personal circumstances may have changed. You may have taken out a mortgage on a home after renting for years; you may be earning enough for your partner to give up their job and stay at home with the kids.
While your current salary covers your personal outgoings, you work in an up-and-down business. If you get sick or had an accident, then you could lose your income overnight. If your personal financial commitments have increased and you're the main or sole breadwinner, then you might want to add income coverage to your policy.
If things are going well, it's worth having your current insurance checked to make sure it gives you the right kinds and levels of coverage. To find out more, talk to your insurance provider or broker.
If your company doesn't have a commercial insurance policy, now is the time to organise one. I didn't have commercial insurance when a storm hit my business premises causing a great deal of damage. That meant that I was unable to claim for the lost trade or for the cost of repairing the building. Once my company was up and running again, I vowed never to make the same mistake again. I contacted a local commercial insurance company and asked them to tell me all about their policies. My business is now fully covered and I am ready for whatever the world can throw at me.