This blog is covering a topic that I have no doubt has been blogged before. The reason I am bringing it up again is that I have witnessed a stark reminder of the need for Personal Insurances. I have observed a situation of a worker being injured and being unable to work for a period of time. My reason for concern for this person is that they are a contractor.
The situation was a young worker had left their employment of a number of years to take up other employment. In the meantime they have been doing contract work for themselves. Things were going well, work was coming in fast, money was consistently entering their bank account and business was in general great! All until they were involved in an after hour’s accident.
The incident resulted in them initially being unable to work for a period of time. My immediate concern was for their financial future. Since they are contractors they are not entitled to any sick leave. Had the accident occurred whilst they were employed they would have had at least the chance to use their sick/personal leave, which I estimate to have been 2-3 month’s worth (provided they had not used it in the past).
I hoped that they had been well advised of the need for Income Protection Insurance at a minimum. If they had such cover, they would be getting a weekly payment until they were back working again. This is particularly important if they have debts and dependants reliant on their income, let alone just to meet their own day to day living costs.
Just imagine someone with a house and car loan that has just lost their income earning ability. They may be able to get some government support, but how long can they maintain their current living standard? Let alone any additional costs incurred in getting treatment for their injury!
All Insurance is buying peace of mind. Many employees don’t consider Insurance as they believe they have WorkCover and both sick and annual leave. Even still, many industries require leave to be taken and used each year and depending on length of service or the award they are employed under, sick leave may not be adequate in exceptional circumstance. It is fair to say that most employers are good people, but once you run out of leave you cannot expect them to assist you. Your absence in itself could be putting stress on their own business either by losing working capacity or having to employee others to fill in.
Although I have been selling the virtues of Personal Insurance another ‘cheap’ cover I believe all people should have is Ambulance cover. It is one thing to be picked up and taken to hospital in an Ambulance, but if you required an Air Ambulance this could be a very substantial cost to you.
If you want more information on Personal Insurance contact our office and book an appointment to meet with our Personal Risk Experts. For Ambulance cover, contact your state based Ambulance service.