WHAT IS A TRADES PACKAGE?

A trades package is a business insurance package that is tailored for the construction tradie.

Typically it will include Public Liability with optional cover for your tools, personal accident & sickness, and on some policies you can also add your motor vehicle whether that is a Van, Ute, Wagon, Sedan, 4WD or your work trailer.

A trades pack or business package is not a Contract Works Insurance policy. This type of insurance is not suitable for licensed builders. If you are a licensed builder, please click here: Residential Builders or Commercial Builders.

The main differences between a Trades Package and a Contract Works policy is that a contract works policy covers damage to the building project whilst it is being built and liability for the whole project site, where this policy is aimed at the work performed by the construction tradie at the site, rather than the site itself.

What are common restrictions or exclusions found on Trades Packages?
Every policy is different, though commonly we see these restrictions that might affect a trades person on various trades packages. Just because a policy has Liability Cover and lists your occupation, it doesnt mean all activities you do are automatically covered, you will need to check your insurer’s policy if you work with heights, dig, use welding equipment or work with asbestos or stone.

  • Height Limitations or Restrictions - Usually in the exclusions of a tradesman package, you are not covered for loss or damage when you are working above xm where x could be 6, 8, 10 or 12 meters.

  • Hot Works Exclusions - Welding, Flame Cutting, Torch Lamps, Hot Air Guns and Soldering Irons are some of the types of activities often excluded by a Trades Insurance Package under the Hot Works Exclusion.

  • Depth Limitations - Usually 2 or 4 m in depth will be excluded under a tradepack

  • Vibration and Weakening of Support Exclusion - A common exclusion in a trades or business package but can be easily covered in a contract works insurance package.

  • Asbestos and Silicosis Exclusions - Typically damage or injury caused by or linked to Asbestos or Silicosis is excluded on a Trades Package or Business Package. If you work with Asbestos or Stone, you may need to speak with us about arranging a specific policy that can cover these risks.

If you operate from a Depot or an Office, you may require a full business insurance policy, not just a trades package to protect your office or depot fitout and computer equipment from damage by fire or storm, or, from burglary and consequential losses. 

For more information on what type of insurance you need, contact our office on 1300 429 707.

 

FAQ - TRADES PACKAGE INSURANCE POLICY

I HAVE $10 MILLION PUBLIC LIABILITY AND $10 MILLION PRODUCTS LIABILITY. DOES THIS MEAN I HAVE $20 MILLION COVER?

In most cases no. Most contract works policies will refer to the Public Liability Insurance and the Products Liability Insurance within the Product Disclosure Statement (Policy Wording) as two separate covers, each with their own limit of indemnity.

 

MY CONTRACT REQUIRES MORE THAN $20 MILLION LIABILITY

It is becoming more common for a tender to request that a builder have in place a $30 Million or even $50 Million Public Liability Insurance Policy. You may already have $20 Million cover and your existing insurer may not be able to extend that to the amount you need. 

In these cases we can arrange for you an Excess Layered Liability policy. This additional policy sits on top of your existing Liability insurance and adds to the amount of cover you have. For instance, if you required $30 Million total and already have a $20 Million Liability policy we can help you arrange the additional $10 Million Excess Layer Liability without affecting your existing policy. The excess layers are annual policies and not project specific. 

We do have some insurers and underwriters who are able to arrange up to $50 million as one insurance programme, if you need a higher limit, please call us.
 

IS PERSONAL ACCIDENT & SICKNESS INSURANCE THE SAME AS WORKERS COMPENSATION?

No.

A personal accident and sickness (PA&S) policy provides cover for continuation of the named insured person’s weekly wage, up to the sum insured, in the event of an insured injury or sickness first diagnosed within the policy period. A PA&S policy generally doesnt provide any cover for Medical Expenses as medical expenses are insured through a Private Health Insurance policy or workers compensation.



IS PERSONAL ACCIDENT & SICKNESS INSURANCE THE SAME AS LIFE INSURANCE OR INCOME PROTECTION?

No.

Whilst a Personal Accident & Sickness policy does provide protection for the named insured’s income, it is not the same as an income protection policy. Income Protection Insurance is a Life insurance product that typically is non-cancellable whilst a Personal Accident & Sickness Insurance policy is assessed and renewed each year, the insurer can elect not to renew a Personal Accident & Sickness policy at the time of the policy renewal or following a substantial claim. Income protection is offered through a financial planner or life insurance broker - we do not offer Life or Income Protection insurance.

MY CONTRACT REQUIRES PROFESSIONAL INDEMNITY COVER

In some contract works policies, it is possible to also add cover for incidental professional indemnity such as a claim arising from incidental project management services or an accidental change to the building ‘plans’.  Such services, errors or omissions are often excluded by trades packages, business packages and some contract works policies. It may also be possible to provide you with a stand-alone incidental professional indemnity insurance policy. Contact our office for more information.