Personal Accident & Illness Insurance
Many a time we think about the risks our business may be open to from third party factors, or how our service may affect others, but we fail to realise that if we ourselves were unable to work how it would affect our business. In the event that you are injured or become ill through a course of your work, you can protect your business and your assets with Personal Accident and Illness Cover.
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What Does Personal Accident & Illness Insurance Include?
Personal Accident and Illness Insurance is designed to support contractors, sole traders, and subcontractors who rely on their ability to work to earn an income. It can provide financial support if you are unable to work due to an insured event, with cover and benefits varying depending on the policy selected. Features include:
Weekly Benefits
- Weekly income replacement: A regular weekly benefit may be payable if you are unable to work due to an insured injury or illness.
- Agreed benefit amount: You can choose your weekly benefit level at the time of application, up to the policy limit. Weekly benefits are commonly available up to $3,000, subject to insurer acceptance.
- Flexible benefit periods: Benefits may be payable for a set period if you are unable to work. Depending on the policy and your age, benefit periods can extend for up to two years.
- Waiting periods apply: A standard waiting period usually applies before weekly payments begin. This is commonly around 14 days for injury claims and 30 days for illness claims, depending on the policy selected.
- Customisable options: Waiting periods, benefit amounts, and cover options can usually be adjusted to suit your income and work situation.
Extra Protection Options
- Optional illness cover: In addition to accidental injury cover, policies can include optional cover for certain illnesses, subject to policy definitions and exclusions.
- Optional lump sum benefits: Some policies offer optional lump sum payments for permanent disablement or accidental death, separate from weekly income benefits.
- 24/7 cover: Cover may apply around the clock, whether an insured event occurs while working or outside of work, subject to policy conditions.
Cover Does Not Include:
- Pre-Existing Conditions: Injuries, illnesses, or medical conditions that existed before the policy started, or before any applicable waiting period, are generally excluded from cover.
- Pregnancy and Childbirth: Pregnancy, childbirth, and related conditions are typically not covered under Personal Accident and Illness policies.
- Mental Health Conditions: Mental illness, stress-related conditions, and emotional or psychological disorders are commonly excluded unless specifically stated otherwise in the policy wording.
- Self-Inflicted Injury or Suicide: Injuries or illnesses resulting from intentional self-harm or suicide are not covered.
- Alcohol or Drug Influence: Claims arising while under the influence of alcohol, non-prescribed drugs, or illegal substances are generally excluded.
- Criminal or Illegal Acts: Injuries or illnesses resulting from criminal acts or unlawful behaviour are not covered.
- Professional or High-Risk Sports: Participation in professional sports or certain high-risk activities may be excluded unless disclosed and accepted by the insurer.
- Workers Compensation Claims: Personal Accident and Illness Insurance does not cover claims that should be made under a workers compensation policy.
- Medical and Treatment Costs: This type of insurance is not designed to replace private health insurance and generally does not cover hospital, medical, or treatment costs directly.
How Much Does Personal Accident & Illness Insurance Cost?
Basic Premium Calculation = Cover Level × Industry Risk × Business Profile
The cost of Personal Accident and Illness Insurance depends on a combination of factors, including the risk level of your industry, the amount of income or benefits you choose to protect, your business turnover, number of employees, and any previous claims history. Most policies are structured to provide affordable, ongoing protection rather than large upfront costs.
To get fast, affordable quotes tailored to your business, use our handy online quoting system and get insured quickly.
How Does Personal Accident Insurance Work?
Personal Accident Insurance is designed to provide income support if you are unable to work due to an insured injury, and in some cases illness, depending on the options you select. It is commonly used by contractors and sole traders who do not have access to paid sick leave.
1. Choose Your Cover
When arranging the policy, you select:
- The weekly benefit amount you want to receive if you cannot work
- Whether you want cover for accidental injury only, or injury and illness
- Any optional benefits, such as lump sum cover for death or disablement
Your cover is set upfront, so you know what you are insured for before anything happens.
2. A Waiting Period Applies
If you are unable to work due to an insured event, a waiting period must pass before payments can begin.
Waiting periods vary depending on the policy and claim type, and may differ for injury and illness claims.
3. Weekly Benefits May Be Paid
Once the waiting period has been satisfied and the claim is accepted, the policy may pay a regular weekly benefit.
Payments continue for the agreed benefit period, provided you remain unable to work and meet the policy conditions.
4. Optional Benefits May Apply
Depending on the cover selected, the policy may also provide:
- Optional lump sum payments for permanent disablement or accidental death
- Optional cover for certain ongoing business expenses
- 24/7 cover for insured events that occur at work or outside of work
5. Returning to Work
Weekly payments generally stop when you are medically able to return to work or when the benefit period ends, whichever comes first.
Why Choose Our Personal Accident & Illness Cover Experts?
We know contractors need reliable cover without the hassle. That is why over 270,000 Aussie small businesses trust us.
- Contractor-Specific Knowledge: Our brokers understand tradie risks and jobs. Get faster service, practical advice, and cover that suits your work. Check plumbers insurance or electrician insurance.
- Compare Multiple Quotes Easily: Using our online quoter, you can compare multiple quotes to find the right cover for your needs, saving both time and money.
- Instant & Affordable: Grab a quote online, set up cover, and get documents in minutes. Want to chat? Our team picks up the phone.
- Backed by Experience: We are part of Elliott Insurance Brokers with over 20 years helping contractors. Enjoy personal service with solid support.
- Sustainable and Ethical: As a carbon-neutral business, we look after the planet while protecting your crew.
Our Quick & Simple Personal Accident & Illness Quoting Process
Arranging Personal Accident and Illness Insurance is fast and straightforward with Contractor Cover. Follow these steps to protect your income in minutes.
Tell Us About Your Work
Complete our short online form with details about your occupation, income, and the level of cover you want to arrange.
Compare Quotes or Speak With a Broker
Review available cover options online or speak with one of our Australian-based brokers to compare quotes, benefit periods, and policy features in plain language.
Arrange Your Cover
Once approved, your policy can be put in place quickly, with documents issued so you can get back to work knowing your income is protected.
Who Needs Personal Accident & Illness Insurance?
Personal Accident and Illness Insurance is not compulsory and is not a replacement for workers compensation or private health insurance. Whether it is suitable depends on your individual circumstances, income structure, and risk profile.
This cover is primarily designed for people who rely on their own ability to work to earn an income and do not have access to paid sick leave or workers compensation for themselves.
It is most commonly taken out by:
Sole Traders and Self-Employed Contractors
If you work for yourself, your income usually stops if you are unable to work due to injury or illness. Personal Accident and Illness Insurance can help provide income support during periods where you are temporarily unable to perform your work.
Subcontractors
Subcontractors are often not covered under a principal contractor’s workers compensation policy. Personal Accident and Illness cover is commonly used to help protect income if you are injured or become ill and cannot work.
Business Owners Who Are Actively Working
If you own a business and are actively involved in day-to-day operations, your absence due to injury or illness can impact both your personal income and business cash flow. This type of cover may help reduce financial pressure while you recover.
Contractors Working in Higher-Risk Occupations
Contractors working in trades or environments with higher physical risk may consider Personal Accident and Illness Insurance as part of their broader risk management, particularly where injuries could prevent them from working for an extended period.
Anyone Without Access to Sick Leave
If you do not receive paid sick leave and rely on regular income to meet personal or business expenses, Personal Accident and Illness Insurance may provide financial support if you are unable to work due to an insured event.
Benefits of Personal Accident & Illness Insurance
Helps protect your income
Provides financial support if you are unable to work due to an insured injury or illness, helping to reduce the impact of lost earnings.
Designed for contractors
Suits people who do not have access to sick leave or workers compensation for themselves.
Flexible cover options
Allows you to choose your cover level, benefit period, and optional extensions to suit your work and financial needs.
Can support business continuity
Optional benefits may help cover ongoing business expenses, reducing pressure on cash flow while you recover.
Cover can apply beyond the worksite
Many policies provide 24/7 cover, including for insured events that occur outside of work or while overseas, subject to conditions.
Generally tax deductible
Premiums are typically tax deductible when the policy is held to protect your income, which can make cover more affordable after tax.
About Us
Contractor Cover is the one-stop insurance shop for contractors across Australia.
We understand that contractors require targeted business insurance which offers both value for money and optimal cover. With that in mind, we’ve packaged the most common insurances the average contractor needs into a single policy. This means that you don’t need to waste your time contending with multiple policies – everything you need is included in one convenient package.
Speak with our team today for more information or fill in our easy online quote form.
270k+ businesses covered
20+ years of experience
Instant, affordable cover
FAQs
What is personal accident insurance?
Personal accident insurance provides financial support if you are unable to work due to an insured accidental injury. It typically pays a weekly benefit for a set period and may include optional lump sum benefits, depending on the policy.
What is accident and sickness insurance?
Accident and sickness insurance is another term used to describe personal accident and illness insurance. It refers to cover that responds to accidental injury and certain illnesses.
Do I need personal accident insurance?
Personal accident insurance is not compulsory. It may be worth considering if you rely on your ability to work to earn an income and do not have access to paid sick leave or workers compensation.
Is personal accident insurance tax deductible?
Premiums are generally tax deductible when the policy is held to protect your income. You should confirm deductibility with your accountant or tax adviser based on your individual circumstances.
Is personal accident insurance the same as income protection?
No. While both provide income support, personal accident insurance is usually simpler and designed for contractors and self-employed people. Income protection policies are often more comprehensive and medically underwritten.
Is personal accident insurance the same as workers compensation?
No. Workers compensation covers employees and is compulsory if you employ staff. Personal accident insurance is optional and is commonly used to protect the income of sole traders, contractors, and business owners.
Does personal accident insurance cover heart attack?
Heart attacks are generally treated as an illness rather than an accident. Cover may apply if illness cover has been selected and the condition is not excluded under the policy wording.
Does personal accident insurance cover medical expenses?
Some policies may include limited benefits for rehabilitation or related costs, but personal accident insurance is not designed to replace private health insurance. Medical expenses are not always covered.
Does personal accident insurance cover overseas?
Many policies provide 24/7 worldwide cover for Australian residents, including while overseas on holiday or work, provided policy conditions are met.
How does personal accident insurance work?
If you are unable to work due to an insured event, you may be eligible to claim a weekly benefit after any applicable waiting period. Benefits are paid for the selected benefit period, subject to policy terms.
How much personal accident insurance do I need?
The amount of cover depends on your income, expenses, and how long you could manage financially without working. Policies usually allow you to insure up to a percentage of your average earnings.
How do I claim personal accident insurance?
To make a claim, you notify the insurer or broker and provide supporting documentation, such as medical certificates and income details. Claims are assessed according to the policy wording.
Is personal accident insurance mandatory?
No. Personal accident insurance is not required by law in any Australian state or territory. It may, however, be required under certain contracts.
Is personal accident insurance worth it?
Whether it is worth it depends on your circumstances. Many contractors and sole traders consider it valuable because their income stops if they cannot work due to injury or illness.
Why is personal accident insurance important?
It can help reduce financial stress if you are unable to work due to injury or illness, particularly if you do not have sick leave or workers compensation cover.
Meet Your Insurance Team
At Contractor Cover, we’re proud to have a dedicated executive team that brings decades of experience, strategic insight, and an unwavering commitment to supporting Australian contractors.
John Elliott
CEO
Rachael Milne
Chief Financial Officer
Kristofer Wright
Head of Technology
Tim Stingers
Insurance Broking Team Leader