FEATURE
DOWN
THE
PROTECTION
TOOLS
ISSUE
PROTECTION
AT A PREMIUM
INSURANCE. IT’S A WORD THAT, FOR
MOST OF US, IS FILED IN BETWEEN DEATH
AND TAXES. BUT THAT WORD COULD
LITERALLY SAVE YOUR BUSINESS.
or many of us, insurance is
a box we have to tick. It’s
done, we see the money
go out every month, and we rarely
– if ever – need to claim.
And really, that’s the ideal
scenario. Because it’s only when
you need to claim that you know
how good your insurance policy is.
And what it’s covering.
While every electrical contractor
worth their salt will have the
mandatory policies in place as a
matter of course, there are so many
more things that you could – and
should – consider being covered for.
John Catibog, managing director
of Indagard Insurance Services,
says, “No one wakes up wanting to
pay more for insurance, and people
think things won’t happen to them.
“It’s funny because even when it
has happened to them, it still comes
back to the cost issue. And they
F
think it won’t happen
to them again. And it
invariably does.
“If something can go
wrong, it will. And even more
so if you’re contracting people
to work on your behalf. You
can’t account for them, and you
need to make sure you’ve got their
liability in order, too.”
(UN) COMMON CLAIMS
FOR TRADIES
Electrical contractors and other
tradespeople can choose from a
wide range of insurance cover
specifically tailored for business
owners, along with several
statutory insurances, says
Lisa Kable, spokesperson for
Understandinsurance.com.au
(the Insurance Council of
Australia’s consumer education
initiative).
22 GEMCELL.COM.AU AUG – SEPT 2019
“Insurance companies that offer
business insurance will often offer
packages that bundle different
types of insurance policies
together,” says Kable.
“These are designed to meet the
needs of individual operators and
small
businesses
and may
be less
expensive than
purchasing policies
separately.
“There is no one-size-fits-all
solution for small businesses.
Insurance needs will vary
according to the industry, trade
and type of business, and in some
circumstances the places in which
the tradesperson works.
“Before buying business-related
insurance, tradespeople should
value their business, their income,
their tools, equipment and vehicles
to ensure they choose the right
level and type of insurance for
their individual situation.
Insurance is imperative for a
tradesperson, particularly those
who work for themselves.”
THE NEW KIDS ON THE BLOCK
As well as the necessary and
good-to-have insurances all tradies
need, there are a couple of other
types of insurance that you may not
immediately consider but which
could be vital to the survival of your
business.
The first is Tax Audit Cover.
“The ATO has made trades a
target in the past, and they will do
again,” warns Catibog. “If you’re an
electrical contractor and you’re
tapped on the shoulder by the ATO
who want to do an audit, how do
you have the time to stop? It’s
potentially a lot of time you’d need
to spend out of the business. Tax
Audit Cover will cover the cost to
comply with the tax audit.”
And, if you’re reading this
magazine cover to cover, you’ll have
already identified another huge
threat: cybercrime.
“Cyber insurance is huge,” says
Catibog. “As an electrical contractor,
you’re collecting details; you’re
holding it on the computer system
to take your bookings. You really
should consider having standalone
cyber insurance. And the key word
there is standalone, because I know
just how big a risk this is.
“To give you an example, last
week I received an email in the
name of a client that I was working
with last year – an electrician
ironically enough.
“I didn’t end up winning the
business, but I got an email asking
me to pay an invoice. It looked legit,
but I have never engaged them.
“On closer inspection, I could see
the email was from another
company, an electrical wholesaler.
Straightaway I could tell the
electrical wholesaler had been
hacked. Because my potential
client’s name was on it, I knew
they’d been hacked, too. They had
probably clicked the link the
wholesaler had ‘sent’ to them.
“The cyber criminal then has
access to that electrician’s database.
They may choose to shut them
down with ransomware or send
malicious links to the database.
“Worst case, there’s liability. If I