Insurance isn’t the most exciting part of running a trade business, but it might be the most important. Too many tradies buy cover from a big box insurer, tick the box and assume they’re protected. The problem is that most people don’t read what’s actually in the policy until they need to claim.

According to Jake Ward from East West Group, the two biggest gaps in liability policies are limits and exclusions. Limits are the total amount an insurer will pay. Exclusions are the conditions where cover doesn’t apply.

A common example is height. A plumber doing residential and light commercial work might have an exclusion for anything over 10 metres. It’s easy to miss when it’s buried in a stack of documents, and it becomes a real problem if you take on a contract that needs work at 30 metres. The fix is simple: tell your broker before you take the job so they can find different cover or negotiate an exception.

Property cover is another common gap. Many tradies underestimate what their tools and equipment are worth once it all adds up, so the declared value is too low. Conditions matter too. Some policies only cover tools when they’re locked in a vehicle, while others cover them locked on site overnight.

Your cover also needs to grow with your business. A policy that suited you as a sole trader won’t suit you with apprentices and subbies. Accident and health cover, management liability for anyone with staff, contract works insurance for builders and commercial legal expenses are all worth considering as you grow. Insurance inside your super often won’t fill the gap either.

Using a broker is like outsourcing any other professional job. You might pay more upfront, but you get someone who understands your business, searches the market for the right mix of cover and price, updates your program as you grow and acts on your behalf if you need to claim. Claims can blow out quickly, and legal fees alone can be costly.

So what should you expect from a good broker? Communication is the big one. A good broker asks how often you want to hear from them and how much detail you want, then follows through. Fees should be clear too. If you can’t see how your broker is paid, ask. You can also speak to two brokerages and see who responds quickly and does what they say.

You work too hard for your money to lose it to a risk you didn’t know about. Check your limits, check your exclusions and make sure your cover matches where your business is today.