When you need to make a claim, the last thing you want is for it to be denied because you didn’t have the right cover, or you undervalued your assets. That’s why we’ve put together some tips on how you can avoid underinsurance.

Value your assets correctly

Undervaluing their assets is one of the most common errors tradies make when it comes to insurance. Your insurance cover needs to represent the true value of your assets, including buildings, tools and machinery. You may have gotten it right in the beginning, but if you’ve upgraded your tools or added more into the collection but haven’t updated your cover, you might find yourself in some hot water.

What could happen?

Undervaluing your assets may mean you’re forking out the difference come claim time. If someone decides to steal your stuff, you’ll only be compensated for the much lower amount you set when you first took out your cover.

Don’t mix business and personal

Private insurance policies don’t always cover damage/loss to your personal vehicle or tools if they’re being used for work purposes. This can make for some pretty sticky situations later on.

What could happen?

Unfortunately, if something happened, like getting into an accident on your way to work, your claim could be denied. Why is this? If you only had personal insurance in place but you were driving your vehicle with tools in the back, it’s considered commercial use and your claim would be denied as you don’t have commercial cover To avoid being caught out, make sure if you’re using your personal vehicle to carry tools or equipment for work, you get some commercial cover sorted.

Make sure you have the right cover

A number of things can happen on-site, so it’s important to make sure you’re covered for every possible situation. Some policies require extensions so it’s important to know exactly what you’ll be covered for.

What could happen?

If one of your employees causes damage to a window while sanding the frames, you would try to claim it on your liability insurance, but if you don’t have a faulty workmanship extension in place, you might not be covered.

Want to make sure you’ve got the right cover in place? Give us a call today.