Carpenters Insurance

When it comes to business insurance, some types are a requirement while others can be extremely worthwhile having but it’s up to you if you get them.

For example, workers’ compensation is a must for employers across Australia, but each state and territory have their own quirks to how this is handled. In Victoria, you’ll need to follow the regulations outlined by WorkSafe Victoria, like having WorkCover insurance if you have any apprentices or trainees, or you’re paying more than $7,500 in rateable remuneration.

While the topic of business insurance becomes a lot murkier once you move beyond workers’ compensation, you may still find you’re required to have some type of business insurance working as a carpenter. This can depend on where you’re working or who you’re working with, as well as it may be necessary for certain building and construction licenses, or to work as a subcontractor.

For instance, in both Victoria and New South Wales, carpenters working on domestic buildings may need to get domestic building insurance or home building compensation cover if the work they’re doing is worth over a certain amount. Otherwise, you won’t be able to register as a carpenter and keep your license.

But business insurance is about more than just ticking a box. Choosing appropriate cover could mean your business is protected if something were to happen, like a third party being injured by your work. It can also protect your livelihood by covering you if you were to be injured, disabled, or killed, even while off the clock. With this insurance, you or your family could then be compensated for your loss of income, leaving everyone with one less thing to worry about.

Your business insurance needs will differ depending on your business, including the contracts you take and the risks you’re exposed to. It can help to think about what costs you could be faced with if, for example, you had to replace or repair the majority of your tools. Similarly, how much cover would you need if you couldn’t work again?

You may like to speak with an insurer or others in your industry to get a better understanding of what your needs may be and how you could manage risks.

When talking about workers’ compensation, you may not need to have it for contractors or subcontractors completing work for you. It comes down to whether they’re an independent business to you – essentially, you hire them to do their thing and they’re not beholden to you for their continued existence as a business.

However, if you’re the contractor in question, you may then want to beef up your own business insurance. Since you won’t be covered by the project owner’s workers’ compensation, you could be up a certain creek without a paddle if you were to be injured and unable to work. Getting your own personal accident and illness insurance policy may be something to consider.

Outside of workers’ compensation, you may need to rely on your own Public Liability insurance to handle any slip-ups or mistakes on the job that may impact your client, a supplier, or members of the public. For instance, if you’re working on a busy site and happen to damage the work of another tradie when installing a fixture, your insurance could cover the costs. Not to mention it may be a requirement of the project contract for you to have one form of business insurance or another.

As with many types of insurance, your business insurance premium can come down to a range of factors. This can include the type and nature of your business. For instance, are you doing work that comes with more risks, like working up high or around lots of heavy machinery?

Additionally, your business size – how many employees you have – can mean more risk. After all, there’s more people for things to go wrong with.

Even where your business is located can affect your premium.

The policy you choose can also change the premium. More inclusions may mean a higher premium, but lots of exclusions could mean you aren’t covered when you really need it. Comparing insurers might even show that different places offer similar cover at varying rates.

Ultimately, you’ll need to figure out what you’re comfortable paying and what level of cover gives you peace of mind.

Regularly re-acquainting yourself with your business insurance policy can help you check that it’s still offering you the cover you need. Over time, your business may grow, or your focus may move to different kinds of projects. Additionally, the value of your assets may change as you upgrade tools and machinery. New tools and machinery can also bring with them new risks, whether that’s having them stolen or needing to be operated by a skilled worker.

Therefore, you may like to make reviewing your business insurance an annual event, or to go over it a little more or less frequently.