Know Risk is a community education program designed by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) to improve our understanding of insurance and how it relates to managing the many risks we all face in life.
Trades and services pack: some insurance basics
Hard working insurance for the hard working individual
If your small business operates within the trades and services industry, it may be worth considering a trades and services pack where your insurance needs are concerned. These packs are typically designed for smaller businesses with a lower number of employees and a smaller annual turnover.
So, what does a trades and services pack cover, and what industries is it best suited to? Read on for more details.
Which trades and services is it most relevant to?
The kinds of industries that a trades and services pack is best suited to is usually dependent on the insurer — some insurers tailor their coverage to suit some trades and services more than others — so it is worthwhile making enquiries with a few different insurers to determine whether or not the cover they offer will be best suited to the industry in which your small business operates.
However, in general, many insurers develop their trades and services packs with some of the following occupations in mind:
- Gardening, landscaping and mowing services
- Electricians and plumbers
- Cleaning services
- Building services
- Painters and plasterers
What is covered?
Trades and services packs tend to focus on two main areas:
- General property — providing coverage for accidental damage to equipment that is used as part of your business.
- Public and products liability — providing coverage against injuries to third parties either at your premises or away from your premises as a result of the product or service you provide. This also provides cover for any damage to third party property in the course of your business operations.
What isn’t covered?
While exclusions will vary among insurers, most trades and services packs will aim to exclude coverage related to the following (this list is by no means exhaustive):
- Design or product defects
- Pretty much anything to do with asbestos
- Defamation, libel or slander of other parties
- Poor or faulty workmanship
- Product recalls
- Anything connected to online operations
- Worker’s compensation
- Fines or penalties
- Any vehicles
How do I know if I should get a trades and services pack in place of individual insurance policies?
If you’re not sure if a trades and services pack is the right insurance route for you, we highly recommend speaking with a broker or insurer about your business. They will be able to look at the specifics of your business and help determine your insurance needs, and then they will be able to make a recommendation that is based on your unique situation.
It’s also worth mentioning that while a trades and services pack might be your best option where some liability and property insurances are concerned, you should still enquire about what other insurance policies might be relevant and perhaps necessary for your particular business operation to ensure that all of your risks are adequately covered.