Checking a Tradie’s Insurance

by reno on December 6, 2012

Handyman Protective GearIf you’re planning on hiring a tradesman for renovation work on your home there a number of things you need to check before they start.

Of course you’ll want to see examples of their past work and confirm that they hold the relevant qualifications and licenses, but there is one extra thing that many people forget…

Insurance.

For most small jobs the only type of insurance you really need to worry about is public liability insurance, and in this guide we’ll tell you what you need to look for and why it’s so important.

Why is it so important?

If a tradesman working at your home causes damage to your property or personal injury to you or your family, they may be found responsible for those actions due to negligence.

In this case the tradesman is liable for your costs, but without insurance many tradies may struggle to settle the claim with you.

Every day incidents happen where a tradie knocks over a vase or breaks a window, and in most cases these small incidents are settled on the spot with a cash payment.

But what if a tradie’s actions result in serious injury or disablement?  With courts awards damages of hundreds of thousands of dollars in some cases, most tradies would go bankrupt rather than being able to pay up.

This is why checking your tradesman’s public liability insurance is so important.

If your tradie has public liability cover in place you will be able to rely on the strength of the insurer to pay your claim rather than having to chase the tradie for money.

Simply ensuring that your tradie is properly insured before starting work at your home can make a world of difference should something go wrong during your renovation, and any decent tradesman will always have the right cover in place anyway.

How to check their insurance

Checking a tradesman’s public liability policy is actually very easy.

You simply need to ask your tradesman for a copy of their certificate of currency.  There are a number of items you need to check on the certificate as detailed below:

  • Check that the name on the certificate matches tradesman’s name
  • Check that the insurance is still valid by checking the expiry date
  • Check that the business activities on the certificate match the work being done

If a tradesman is unwilling to provide a certificate of currency, you should definitely question whether or not you want this person working in your home.

All decent tradesmen will have insurance in place and will be more than willing to give you a copy of the certificate, so you should never be afraid to ask the question before they get started.

Leave a Comment

Previous post:

Next post: