Personal Accident & Illness Insurance for Tradies: What It Covers and Why It Matters

Tradies know what it’s like to put in hard work. Their livelihood depends on physical capability every day – such as lifting, operating tools, working at heights, and performing repetitive manual tasks. But what happens when injuries leave them unable to work for days, weeks, or even months?

Personal Accident & Illness insurance (also sometimes referred to as accident and sickness cover or injury and illness cover) may be a critical financial safeguard for busy tradies wanting to protect their most important asset: themselves. Think of it as a type of ‘income protection.’ Read on to learn more about this cover option and how it can support your financial stability.

What is Personal Accident & Illness insurance?

Personal Accident and Illness insurance can provide cover should you become permanently disabled or pass away as a result of an accident. Cover can also include a weekly benefit for loss of income if you are unable to work as a result of an unexpected injury or illness, even if it occurs outside of your employment.

In practical terms, this type of cover helps replace lost income and can provide structured financial support during recovery periods.

A Personal Accident & Illness policy can help cover lost income for a defined cover period (depending on the policy) following an accidental injury or illness. Once signed off from work by a medical practitioner, this weekly income benefit may pay up to 85% of your salary to help meet ongoing financial commitments.

Understanding key terms:

• Lump sum / capital benefit: A one-off payment made if a serious injury, permanent disability, or death occurs.
• Rehabilitation: Financial support for treatment, therapy, or programs designed to help you recover and return to work.
• Chauffeur benefit: In some policies, cover for transport assistance if you are unable to drive due to injury.

But do I really need it?

Tradies who skip Personal Accident & Illness insurance often do so for two reasons:

1. I’m covered by workers’ comp insurance.

Workers’ compensation has limitations. Sole traders are generally not covered by workers’ compensation insurance, because they aren’t considered employees. In some circumstances, independent contractors and subcontractors may not be covered by an employer’s workers’ compensation policy.

Workers’ compensation insurance also only applies to work-related incidents. Injuries sustained outside of work (such as sports injuries, accidents at home, or illness) are generally not covered.

Personal Accident & Illness insurance can help bridge these gaps, with many policies offering 24/7 worldwide cover, meaning protection both on and off the job.

• I have savings, so I’m good.

Savings can provide short-term support, but they may not be sufficient for extended recovery periods.

The median time lost to work-related injuries and illnesses was 7 ½ weeks during the 2023-24 financial year. That’s a long time to be without a paycheque.

For example, a six to eight week recovery could significantly impact cash flow, particularly when ongoing expenses such as mortgage repayments, vehicle finance, and business costs continue.

Personal Accident & Illness insurance enables tradies to recover without needing to rely entirely on personal savings, helping maintain financial stability during periods of reduced income.

Personal Injury & Accident insurance claim stories

Tradie insurance claim example #1

A tiler tore his bicep muscle while lifting heavy boxes of tiles. The resulting injury was so serious that the tiler was unable to work for six months until his muscle had fully healed.

As the tiler held Personal Injury & Illness cover, they were able to claim for weekly injury benefits of $1,700 per week. The total payment made over the recovery period was $40,800.

Tradie insurance claim example #2

A plumber was involved in a motorcycle accident which resulted in significant spinal injuries, as well as other injuries. As a result of the accident, the plumber was unable to work for more than two years.

The weekly benefits were paid for the full benefit period of 104 weeks. Weekly payments of $1,000 were made for the first 12 months, and then increased to $1,050 for the next 12 months. In total, the full amount paid by the insurer was $106,000.

What to look for in a Personal Injury & Accident policy

When comparing Personal Injury & Accident insurance, consider:

• Cover period: How long benefits are payable (e.g. up to 12 months, 2 years, etc).
• What’s covered (and what isn’t): Every insurance policy will have exclusions, such as pre-existing conditions or high-risk activities.
• Age limits: Policies often have eligibility ranges (typically between 65-70 years, depending on the policy and cover selected).
• Waiting period: The time before benefits begin (e.g. 7-28 days), which can impact premiums
• Benefit limits and payment structure: Including weekly benefits and lump sum payments

How to find Personal Accident & Illness cover

Comparing Personal Accident & Illness quotes can help you find a policy that fits your needs and budget.

Every insurer differs in terms of pricing, exclusions, waiting periods, and benefit structures. Taking the time to compare options can help ensure the policy aligns with your occupation and financial requirements.

BizCover makes it fast and easy for tradies to find Personal Accident & Illness insurance. You can compare quotes and buy online in minutes.

Looking for something else? Compare quotes online for other types of business insurance, such as Public Liability insurance.