Builders don’t just earn a wage — they manage projects, timelines, subcontractors, and financial risk.

If you’re unable to work due to illness or injury, it’s not just your personal income that stops. Projects stall. Cashflow tightens. Overheads continue.

That’s why income protection insurance for builders needs to be structured differently than many other occupations.

This guide explains what builders specifically need to understand before choosing a policy.

Income protection is just one part of a comprehensive risk strategy. Builders should also consider their broader insurance for builders needs, including public liability, contract works, and personal protection cover.

Why Income Protection Is Especially Important for Builders

Builders face a combination of:

• Heavy physical workload
• Long-term joint and back strain
• High injury exposure on construction sites
• Contractual income pressure
• Project-based revenue cycles

Unlike salaried office workers, builders often rely on:

• Milestone payments
• Project completion schedules
• Ongoing site presence

If you can’t physically attend site, income can slow or stop entirely.

Builders Face Higher Physical Risk Over Time

While serious accidents are an obvious risk, many builder claims relate to:

• Chronic back problems
• Knee and shoulder degeneration
• Repetitive strain injuries
• Post-surgical recovery periods
• Long-term mobility limitations

These conditions may not permanently disable you — but they can prevent you from performing on-site duties for extended periods.

A properly structured income protection policy needs to account for this.

Income Protection for Builders Who Run Their Own Business

Many builders operate as:

• Sole traders
• Company directors
• Partners in construction businesses

This creates additional complexity.

Key considerations include:

How Income Is Defined

Is your income based on:

• Salary drawn?
• Dividends?
• Net profit?
• Contract payments?

Different policies assess income differently at claim time.

Fluctuating Income

Builders often have inconsistent monthly earnings depending on project stages.
Policies may average income over 12–24 months.

Ongoing Business Expenses

Even if you’re not working, you may still have:

• Vehicle finance
• Equipment repayments
• Office rent
• Staff wages
• Insurance premiums

Some policies allow optional business expenses cover. This is often overlooked.

The “On-Site vs Supervisory” Distinction

Some builders transition from physical labour to site supervision over time.

Insurers may assess:

• How much manual work you personally perform
• Whether you are primarily supervisory
• Whether you work “on the tools”

This directly affects:

• Risk classification
• Premium cost
• Definition of disability

Accurately describing your day-to-day duties is critical.

Own Occupation vs Any Occupation for Builders

This is particularly important in construction.

If you suffer a serious back injury, you may not be able to:

• Lift structural materials
• Climb scaffolding
• Perform physical site duties

But you may still be able to:

• Consult
• Supervise
• Manage projects

Some policies assess whether you can work in any suitable occupation — not necessarily as a builder.

Understanding how disability is defined can significantly affect claim eligibility.

Waiting Periods for Builders — Choosing Strategically

Builders often have:

• Irregular income cycles
• Payment tied to milestones
• Existing savings buffers

Choosing the right waiting period requires assessing:

• How long you could realistically self-fund
• When your next major project payment is due
• Ongoing financial commitments

Common waiting periods:

• 30 days
• 60 days
• 90 days

Longer waiting periods reduce premium — but increase short-term risk.

Benefit Period — Short-Term vs Long-Term Protection

For builders, the risk isn’t just temporary injury.

Long-term physical deterioration is common in construction.

Benefit period options typically include:

• 2 years
• 5 years
• To age 65

A shorter benefit period may be cheaper, but may not protect against long-term disability.

Income Protection Inside Super vs Outside Super

Builders often consider funding premiums via super to reduce cashflow strain.

However:

• Policies inside super may have stricter definitions
• Flexibility may be reduced
• Claim structuring can differ

Retail policies outside super often provide more control — particularly important for business owners.

This decision should be made carefully.

Common Mistakes Builders Make

We often see builders:

• Underestimating long-term wear and tear risks
• Assuming WorkCover is sufficient
• Choosing cover based on price alone
• Failing to disclose full physical duties
• Not reviewing cover as income increases

WorkCover only applies to work-related injuries — not illness or non-work accidents. Income protection is broader.

Why Builders Should Review Their Cover Regularly

Your risk profile changes over time:

• Moving from hands-on to supervisory
• Taking on larger contracts
• Increasing income
• Expanding staff

Your income protection policy should evolve accordingly.

How a Broker Can Help Builders

Because builder income and risk profiles are more complex than many occupations, tailored advice can help ensure:

• Accurate occupation classification
• Correct income structuring
• Appropriate waiting and benefit periods
• Alignment with business structure
• Clear understanding of policy definitions

Claims advocacy is also critical if something goes wrong.

Final Thoughts: Income Protection for Builders

Income protection for builders isn’t just about replacing wages.

It’s about protecting:

• Project continuity
• Personal cashflow
• Business stability
• Long-term earning capacity

Because builders face higher physical risk and often operate businesses, a generic policy may not adequately reflect your situation.

The right policy should align with:

• Your role on-site
• Your business structure
• Your income pattern
• Your long-term financial goals

If you’re unsure whether your income protection is structured correctly, a review can provide clarity.

Ready to Review Your Income Protection?

If you’re a builder and want to ensure your income is properly protected, we can help you compare policies and structure cover that reflects how you actually work.

Speak with a specialist income protection insurance broker today to review your income protection options.