5 Common Insurance Gaps for Tradies (and How to Discuss Them with Your Broker)
If you’re a tradie running your own business, insurance is usually one of those things you set up once and forget about until renewal rolls around. The thing is, your business doesn’t stay the same. You start taking on bigger jobs, pick up new gear, bring on an apprentice, maybe buy another vehicle, but your cover doesn’t always keep up. Gaps in cover are more common than most business owners realise, and they usually only show up at the worst possible time, when you’re making a claim.
At Remingtons, we’ve been supporting Australian businesses since 1982, and we regularly see the same issues arise when clients review their policies. These are 5 of the most common coverage gaps, along with a few key questions worth raising at your next policy review.
1. Tools Left in Vehicles Overnight
Tool theft is one of the most common claims we see for tradies, so it’s important to understand the conditions in your policy around how your tools need to be stored or whether your tools are covered under your policy at all. Having the right cover in place can make a stressful morning of discovering missing tools a lot easier to deal with.
It’s worth reviewing with your Broker whether your Business Insurance includes a General Property section, as this can extend cover to tools, equipment and stock when they’re off site, up to the policy limit.
What to ask your broker:
What are the storage conditions on my tool cover, and does my cover reflect how I actually store and use my tools day to day?
Are my sums insured still enough to replace everything if it was stolen or damaged?
How do I cover all of my tools that are individually over $2,500?
2. Subcontractor Liability
If you’re using subcontractors, you need to make sure you’re covered for any liability that could arise from their work.
Public Liability (also known as Broadform Liability) generally covers you if you’re responsible for injury to a third party or damage to their property, but policies often contain conditions around subcontractor work, and your cover may not respond the way you expect if the use of subcontractors hasn’t been specifically noted on your policy.
This is particularly important on commercial sites where Certificates of Currency need to meet specific wording or liability limits.
What to ask your broker:
Does my Public Liability cover the use of subcontractors?
Am I meeting the insurance requirements in my current contracts?
3. Plant and Equipment on the Move
If you're running Excavators, Bobcats, Elevated Work Platforms or other Mobile Plant, there's often confusion about when and where your equipment is actually covered.
Mobile Plant and Machinery Insurance is built for registered and unregistered mobile plant that gets taken to job sites, but the fine print around transit, hire replacement after a loss, and liability for damage caused by your equipment can vary significantly between policies.
When machinery is stolen or damaged, the repair cost is just one part of the problem. Hiring a replacement while yours is out of action can be just as costly, and not every policy covers that.
What to ask your broker:
Does my current Mobile Plant and Machinery policy cover how I use, move around, and store my plant and equipment?
What happens if a piece of machinery becomes out of action?
4. Vehicles, Trailers, and Fit-Outs
A common coverage gap we see with Commercial Motor Vehicle policies isn’t the actual vehicle itself, but everything that goes with it, like trailers, towed plant, tools in transit, signage, and vehicle modifications and accessories. These items are often treated differently from the vehicle itself and may need to be specifically noted or covered separately under another policy.
For businesses with multiple vehicles, a fleet arrangement can make renewals and admin a lot easier, but no matter the policy, it only works properly when your broker understands how each vehicle is used in day-to-day operations.
What to ask your broker:
Are my vehicle, trailer, and tools-in-transit arrangements set up so they work together rather than leaving gaps between them?
Are the modifications and accessories I’ve added to the business vehicles also covered in the event of a claim?
5. Personal Cover for the Person Behind the Business
Business Insurance is often treated as a must-have for any business, but what’s easy to overlook is that you are your business’s most important asset. If you're off the tools for weeks or months because of injury or illness, your business policies generally won't replace your income.
That's where Personal Accident and Illness Insurance comes in. This policy is designed to help relieve financial pressure if you suffer an injury or illness that prevents you from working or running your business. This cover sits outside your standard business policies, so it's worth treating it as a separate conversation altogether.
What to ask your broker:
Can we talk through how my business cover and personal risk cover fit together, so I know where the gaps are?
If something happens and I can’t work, how am I protected financially?
The Importance of a Proper Review
Most gaps in cover happen because things change. What worked for your business in the past may not be the right fit for how you operate now. A proper review goes beyond simply renewing last year’s policy. It takes a closer look at your current operations, whether your sums insured are still sufficient, and if your cover still makes sense for your business operations.
All insurance is subject to policy wording, and no two businesses are the same. The real benefit of reviewing your insurance is understanding what is covered, what is not, and avoiding any surprises if you ever need to claim.
If you’d like to review your current cover, get in touch with the team at Remingtons. With branches across Ballarat, Brisbane, Melbourne, Gold Coast, Geelong, Noosa, and Tasmania, we work with tradies across a wide range of industries and can help tailor cover to your business.