Income Protection for Tradies: Why It’s Essential for Physical Workers
For most tradies, your body is your livelihood. Whether you’re an electrician, plumber, builder, or carpenter — your ability to work physically is what keeps your income flowing. But what happens if injury or illness stops you from doing your job?
That’s where Income Protection Insurance becomes essential. It ensures that if you can’t work due to sickness or injury, you’ll still receive regular income to pay your bills, support your family, and keep your business going.
At Covered Life, we help hardworking Australians — from sole traders to contractors — protect what matters most: their income and lifestyle.
Why Income Protection Matters for Tradespeople
Tradespeople are among the most likely to experience injuries that lead to time off work. According to Safe Work Australia, tradies account for nearly 60% of all serious workplace injury claims, despite making up only a third of the workforce.
Whether it’s a back strain, shoulder injury, or accident on site, the financial impact can be huge. Income Protection Insurance provides a monthly benefit (usually up to 70% of your income) if you’re temporarily unable to work, giving you time to recover without the stress of lost income.
How It Works
If you’re unable to work due to an illness or accident, your policy pays a percentage of your regular income after a short waiting period. This benefit can continue for months or even years, depending on your policy’s terms.
That means you can still cover:
Rent or mortgage repayments
Car loans and business expenses
Everyday bills and family costs
Recovery or rehabilitation
In other words, you’ll still have money coming in while you get back on your feet.
Why Tradies Need Income Protection More Than Most
If you’re self-employed or a subcontractor, you don’t get sick leave or workers’ compensation outside of job-related injuries. That means if you’re injured off-site or become ill, there’s often no financial backup.
Income protection fills that gap — giving you stability when you can’t work.
Common Scenarios Where Cover Helps
A builder injures his knee and needs six months off work. Income protection helps cover his mortgage and living costs.
A plumber is diagnosed with a medical condition that prevents her from working for a year. The monthly payments replace most of her lost wages.
A self-employed electrician breaks his arm in a weekend sports accident. Without cover, he’d have no income until recovery.
These are everyday examples — and they highlight why income protection is often the most valuable tool in a tradie’s financial toolkit.
Choosing the Right Policy
When comparing income protection options, consider:
Waiting period: How long before payments start (e.g. 14, 30, or 90 days).
Benefit period: How long payments continue (e.g. 2 years, 5 years, or until age 65).
Premium type: Stepped (increases each year) or level (stays consistent).
Inside or outside super: Premiums through super reduce out-of-pocket costs but may limit flexibility.
A Covered Life specialist can help you compare leading insurers and tailor cover to your trade, income, and recovery needs.
Why Work with Covered Life
At Covered Life, we understand tradespeople. We know time is tight and paperwork isn’t your favourite task — so we handle it for you.
We’ll:
Compare top Australian insurers for tradies
Explain waiting and benefit periods in plain English
Help you structure your policy tax-effectively
Provide ongoing support if you ever need to claim
We make insurance simple, affordable, and tailored to the way you actually work.
General advice disclaimer: The information in this article is general and does not take into account your personal circumstances. You should seek advice from a qualified professional before acting on any information provided.
