BizCover has called on SME insurance brokers to increase their attention on professional indemnity (PI) cover to help protect electrician, plumber, and carpenter clients from hefty liability costs.

It says the often-neglected cover offers protection for trades that offer advice in their day-to-day operations against negligence claims.

BizCover’s Head of Product and Risk Jane Mason says the collective trade industry’s understanding of insurance is unlikely to include PI cover.

“This is where brokers can provide critical support, getting their clients the appropriate coverage they pride themselves on,” Ms Mason said.

Ms Mason says only a small fraction of the near 1000 policies sold to tradies on BizCover for Brokers have included PI cover and suggests brokers can help fill in this gap by actively recommending the policy to their clients.

BizCover warns that brokers who fail to recommend PI cover to clients risk opening themselves up to claims of negligence.

“If a broker already has tradie clients that may have a PI gap in their cover but were advised to just stick with other standard policies, they could run the risk of exposing their own E&O,” BizCover said.

Ms Mason says insurtechs that provide automated and fast-tracked offerings, such as BizCover for Brokers, can help break through barriers that traditionally limited brokers from engaging with the trade industry.

“Going out approaching multiple different markets, emailing, and following up all takes time and when we’re talking about getting a small cut of a low premium it may not be financially viable for the broker,” Ms Mason said.