Why Tradies Are the Most Under-Insured Workers in Australia

Here's an uncomfortable fact. The people doing the most physically risky work in Australia are, on average, the least likely to have decent insurance covering them. Office workers with the least physically demanding jobs are often better protected than the blokes and women up on roofs or under houses all day.

Why does this happen? A few reasons. Insurance feels like an expense with no visible return, right up until the day it isn't. Trades work often comes with irregular income, so it's easy to deprioritise a monthly premium when things are tight. And there's a bit of bravado in the industry. Injuries happen to other people, not you.

But the numbers don't care about bravado. Musculoskeletal injuries, falls, and manual handling incidents are consistently among the highest workers compensation claims in construction and trades. And workers comp only covers you if you're injured at work. Slip on your own front steps on a Saturday, tear your rotator cuff playing footy, get crook with something unrelated to the job? None of that is covered by workers comp, but it can knock you out of work just the same.

Picture this. An electrician, mid-30s, falls off a ladder at home doing his own gutters. Shoulder reconstruction, four months off tools. No income protection. No workers comp because it wasn't a work injury. Mortgage still due every fortnight. That's not a rare story, it's a Tuesday.

The fix isn't complicated. Income protection insurance is built exactly for this gap, and premiums can sometimes be paid through super, which softens the impact on weekly cash flow. It's one of those things that feels unnecessary until it's the only thing standing between you and real financial stress.

If you're in the trades and you're not sure what you're covered for (or if you're covered at all), it's worth a proper look. Sean at Success Planning can talk you through it without the jargon. Flick an email to info@successplanning.com.au.

This article contains general advice only and does not consider your personal circumstances. Please consult a financial adviser before making decisions.