Business Insurances-Which?

I'm about to go into a business with 2 friends. It will involve being on other peoples properties and also sub contracting work out to others who will work on these properties. It's possible that some of the subbies won't have any type of insurance of their own.

I've been pushing to have insurance, but it's been argued that the home owner will have insurance and the subbies (most or all) will have insurance and if we have insurance as well that would make 3 sets of cover for the same thing - and insurance companies love this.

Can you guys clarify the whole insurance thing for me. Can you explain what types of insurance you'd recommend and why and what does it cover.
Finally, is Public risk the same as Public Liability?

You need to contact an Insurance Broker to get the best advice.

I have a good one if you need his number; pm me.

My advice though, would be this;

Don't rely on others being insured on your behalf. Get your own pub liability for $20 million for a start.

Loss of income is also worth considering, but for it to be of any use, you have to have a declared income, and they will only calculate your payments (if you are out of work) on this.

So, if you are going to be like so many tradies who think they are clever and never declare anything, then you will probably shoot yourself in the foot in a number of ways.

One of those ways (in the future) is applying for loans. The bank will ask for docs (income), and there won't be any because you didn't declare it. No loans forthcoming, or at best; a very expensive Lo Doc or NO Doc and low LVR % lend.

And finally, the ATO isn't dumb. They know roughly what each industry will return to each employee within it. If your income and expenditure falls outside of their parameters, they will red flag you and you might receive a visit.

End of fatherly lecture.
yep...ditto to all above.
Well said Marc.

GET INSURANCE!!! and pay your tax...
AND keep detailed records of who did what.

If there is a problem you will need to know exactly what you did and be able to prove it.
If you are "subbing"for someone else..make out quite a detail invoice for each job outling what you were responsible for.

Most of all.......have fun :)
Couldn't agree more with Marc - talk to an insurance broker. They charge little/nothing depending on your situation, and can save you big cash depending on what your requirements are.

My brothers company specialises in business insurance. Even for businesses already covered, he often ends up saving them thou$sand$ per year in premiums from policies that were set up incorrectly, not specific to their needs, or with a less than optimum underwriter for their situation.
and on a side note; whenever I look to engage tradies I always go for the ones that advisertise 'fully insured'. The last thing I want is a tradie getting injured on my property and then claiming against my insurance.

This may give you an advantage above the non-insured competitors for consumers such as myself.