Electrical Connection Autumn 2015

9 6

E L E C T R I C A L CO N N E C T I O N

A U T UMN 2 0 15

TIPS

s a tradie, there are many risks that

have the potential to put you out of

business – sometimes for good.

Some of these risks are fairly obvious.

One of the biggest is that someone will

be injured or even killed as a result of

your work environment or because of the

incorrect use of equipment.

Electricians face the very serious risk

that they, a member of the public or one

of their workers, could be electrocuted

due to their workmanship.

Likewise, carpenters are of course

responsible for the integrity of structures

they construct. A collapsing roof

or floor in a house can have deadly

consequences.

You can also be accountable if

somebody’s property is damaged as

a result of work you’ve undertaken, or

products you’ve installed.

For example, faulty electrical work in

a house can potentially ignite and engulf

the property in fire and then spread

to nearby houses. Electricians can be

liable for the damage to the neighbours’

properties as well as their actual

customer’s property.

Plumbers can get themselves into

strife if their customers’ homes become

water damaged due to substandard pipes

or incorrect fittings, leaking or faulty

workmanship.

Being responsible for serious injuries

or property damage can be both

extremely costly and severely detrimental

to your business’ reputation. As well as

this, it could have a devastating personal

impact on you.

Thankfully, most tradies are all too

aware of these risks and take the proper

precautions, including covering their

business with public and products liability.

However, there are many other less-

obvious risks that should not be overlooked.

Some of these risks include:

Dust build-up:

This often occurs during

construction and carpentry work.

Dust exposure can cause members

of the public to become unwell, such

as causing asthma attacks and other

respiratory conditions. Dust is also

flammable, so it can pose a fire risk.

Soldering and welding:

These are

undertaken by a wide variety of

trades. Sparks from these tools can

easily start a fire if they’re used in

uncontrolled conditions.

Flammable building materials:

Materials, such as wood, pose a

fire risk if they’re not kept in safe

locations.

Dangerous tools:

Certain tools, such

as power saws, drills and nail guns,

can pose a threat to members of the

public if they are used improperly or

left unsupervised.

Copper theft:

This is a particular

problem for plumbers and electricians.

Copper wiring and plumbing is

expensive and may be a tempting target

for thieves, particularly if they’re left

unsecured or in the back of your vehicle.

Damaged infrastructure:

Any tradies

who are involved in excavations,

construction or renovations, can

easily damage a house’s water or

gas plumbing, or electrical and

communication wiring if they are not

careful in the process of their work.

This could cause water damage, fires

or power outages. The risks include the

use of lower-quality materials, failure

to follow specifications, building codes

or safety precaution standards, and

defective work.

To cover your business against these

situations, it’s imperative you have public

and products liability insurance and

portable and valuable property insurance.

Public and products liability covers

your legal liability for injury or damage

that you, your employees or your

business causes to other people or their

property. Fortunately, most tradies are

required to take out this cover when they

take up a contract.

In cases such as these, it’s important

to remember you are responsible for any

product you use in the course of your

work, even if you don’t manufacture it.

This includes fittings and wiring, building

materials and tools.

You should also take proper

precautions to mitigate these risks.

Ensure you and your staff are well trained

and certified to perform the work and

use the tools and equipment. If doing

underground work, it’s important to

use the ‘dial before you dig service’. If

undertaking hot work, such as grinding

or welding, ensure you comply with the

relevant Australian safety standards.

It’s also very important to perform

all the correct safety checks and use

materials, products and tools with the

right quality standards. Ensure your tools

and equipment are secured or supervised

when not in use so they cannot harm a

member of the public.

Meanwhile, portable and valuable

property (also known as general property)

covers any portable business items

carried in the course of your business for

theft and accidental loss or damage.

This includes items such as tools

and mobile phones, as well as tablets,

cameras and other such equipment. It

can also include copper products, such

as wires and pipes.

You must remember that items stolen

from an unlocked vehicle are generally not

covered. If you have a ute, you must put

your tools in a locked box that is securely

attached to the vehicle or chain them up to

the vehicle itself or within the locked cab.

Proof of ownership for items like

tools is often an issue when making a

claim. If you don’t have receipts, you can

take photos and make a record of the

serial numbers to make sure the claims

experience is quick and easy.

AAMI

www.aami.com.au

OFFSETTING RISK

From copper thieves to

flammable dust, worksites

pose serious risks for tradies’

businesses. AAMI Commercial

Portfolio senior leader

Theo

Pitsikas

explains how to protect

your interests.