Automotive industry insurance expert Elie Youssef of Gallagher, offers his thoughts on essential insurance for technicians.
1. Toolbox insurance
If you work as a technician, apprentice level upwards and don’t have insurance cover for your tools, you need to sort that out ASAP! The amount of money insurance could save you in the event of loss, damage or theft is huge.
The big issue we see is that a lot of technicians will simply buy insurance online as cheaply as possible, without really knowing if they have the right amount of cover. That can be a big mistake! If you haven’t taken out enough cover, in the event of a claim you won’t receive the payout you need to replace what has been lost.
Many insurance policies will only pay out a maximum of $2000 for a single item, so it is recommended to specify the value of particularly costly tools. Example if you have not specified in your insurance policy the cost of your $3000 tool chest, you could end up $1000 out of pocket to replace it. That’s going to hurt…
If in doubt about the best insurance for your individual needs, speak to an insurance broker. They’re experts in the cover available on the market and can advise you in your best interest. It’s a no-brainer.
2. Income protection insurance
Being a technician offers no shortage of ways to injure yourself! Luckily, most workplace injuries amount to little more than cuts and bruises. But what would happen if you were unable to work for an extended period of time due to a more severe injury?
Any injuries to hands and feet could potentially put you out of action for the long haul. What if you were playing footy with your mates and broke an arm or leg? You might not be able to work for months, that’s when income protection insurance can be worth its weight in gold.
Income protection insurance provides regular benefits of up to 75% of your salary in the event you’re unable to work due to illness or injury. There are some factors to consider including ‘waiting’ and ‘Benefit’ periods, which will determine how long you need to wait to start being paid and how long they will pay out for.
The type of cover you need will also differ depending on whether you’re an employee or a self-employed contractor. If this is starting to sound like it’s falling into the ‘too hard’ camp, then you should speak to an insurance broker who can help you get the cover you need and cut out the technical jargon. We can’t reiterate how important this type of insurance is for technicians.
3. General liability for contractors
Many technicians can be self-employed and primarily involved in contract work. If that’s you, general liability insurance cover should be high on your list of priorities.
It will provide cover for:
Damage to property you’re working in or on
Third party injury, damage or death
Rectifying faulty workmanship
Legal costs and expenses related to the above
If you’re an employee, either full-time or part-time in a workshop, you’re likely covered for the above under the business’s insurance policy. But it is well worth asking your employer to make sure you’re not caught out.
About the author
Elie Youssef is a Senior Account Executive at Gallagher’s Parramatta Branch, who specialises in providing insurance solutions & advice to the automotive industry. Contact Elie on 02 8838 5715 or email@example.com