Every year building companies go bust leaving unfinished buildings, clients in limbo and many sub-contractors unpaid.
Risks of Being Self Employed
Many tradespeople like the flexibility of being self-employed, but there are trade-offs. Some of the biggest risks of self-employment are not having enough work or not being paid for your work.
Impact of Unpaid Invoices
Unpaid invoices have a ripple effect. If a self-employed or small business owner isn’t paid their invoices on time, they can be placed in financial stress or worse at risk of bankruptcy. The bills don’t stop when someone isn’t paid. They still have to pay their business expenses of a work vehicle, fuel, accountancy fees, registrations and insurance. If they employ staff, the situation is even worst because they still have to find the money to pay staff on time. On top of the business expenses are their personal expenses. They may have a young family and are the only income earner in the house, so the financial pressure mounts with every day their invoice goes unpaid.
How to Protect Yourself
With the rise of sub-contractors not being paid, the popularity of credit insurance for tradespeople has also grown. Contractors who feel they are at risk of completing the work only to find their debtor is insolvent or declares bankruptcy, are covering themselves with an insurance policy. The insurance allows them to take out a policy for a one-off project or coverage for the year.
Specialists in Trade Insurance
Phoenix has been specialising in insurance for tradespeople for some years. We know when there is a need for a new trades insurance policy before other insurance companies because we are talking to tradespeople every day. We know the state of the industry and economy so when times are tough, we’re the first to hear.
Combine with other Trade Insurance
Underwritten by a secure international insurer, Phoenix Insurance Brokers offers a package of trade-related insurance protection against a range of risks including:
- Property damage
- Public Liability
- Australia-wide protection for tools of trade
- Motor Vehicles
- Workers Compensation
- Management Liability
You can take out a package of single components, whatever you need to suit your personal circumstances.
Talk to a Phoenix Insurance Brokers consultant by calling 9367 7399 or complete the Quick Trade Quote and we’ll come back to you very soon.