Do owner-operator of water carts need income protection insurance? From mining to construction areas to dry and arid road conditions during summer months, running your own water cart is truly a thriving business. It is, however, not one without risks. Apart from road collisions, hazards from exposure to harsh elements like sand, dust and grit as well as fatigue being common culprits that often lead to disastrous situations. As an owner-operator, you will have no coverage for workcover or workers’ compensation insurance– and this makes a water cart owner-operator income protection insurance policy a must-have.
Income Protection vs. General Insurance
Without a doubt, the physical aspect of your business like the water cart and appendages attached to it are covered with a general insurance. Perhaps, you may also have liability insurance coverage to aid in your defence should an unexpected incident occur which affects a pedestrian, the environment or other motorists. These insurances can definitely protect you from financial ruin should an incident result to injury, lawsuit, hospitalization or worst, death. Repairs to your water cart will also be covered. In short, general insurance coverage is designed to protect the vehicle and your legal responsibility in the event of litigation.
However, some water cart owner-operators fail to address one important aspect: loss of income. When your vehicle is down or your contract suspended due to legal impediments, income earned will also stop coming in putting you and your family in a bad financial position. Income protection for water cart owner-operators is designed to provide a steady stream of income. If you are incapacitated, this insurance cover will provide at least 75 percent of your current income (or a fixed amount as agreed per your policy) on a monthly basis to ensure that you and your family are able to get by.
For a water cart owner-operator, Australia’s specialty income protection insurance provides a much-needed buffer not just for you but also for the whole family. It is a known fact that single owner-operators rely on their paycheck to cover their expenses. One wrong move and your family can lose the lifestyle they are used to or worse, the very home they are living in. If you had a child studying they may need to go through a high interest rate student loan route. When things go awry for you, your whole family will suffer.
When injury or illness starts affecting a water cart owner-operator’s life and there’s no company who can provide needed support, income protection provides a much-needed relief. This will allow much needed relief in regards to mortgage repayment, utilities, grocery or food, water and gas, and other needs usually paid for by your owner-operator earnings.
Income protection is a buffer to your cash flow. Beyond that, it is also imperative to consider the nitty-gritty of your policy. Understand the fine print and the implications of it. From zero premium loading to gross turnover based income protection, to all-in tax-deductible life insurance inclusion, and so on, it is also wise to seek out the help of financial advisers as you plough through the many types of coverage.
Bottom line is: water cart owner-operator income protection insurance, though a specialty policy, is a must-have for self-owned business entities like yours. Life can be quite challenging to breadwinners of a family and more so to those who independently operate one like your owner-operator water cart operation. The key is to find a reliable insurer who can tailor coverage to suit your needs. To learn more, call us or shoot us an email for a quote.