When it comes to income protection insurance, it is crucial that you get the right levels of cover in place. For tradies, there are plenty of hazards on site which can easily put you out of action and leave you with no revenue to finance your recovery.

However, income protection insurance can be tough to get right. To help you make the right decisions, here are three factors to consider before you take out a policy.

How much cover do you need?

Income protection will often depend on how much cover you want in the case of an accident. Cover usually extends up to 75 per cent of your regular wages if you are unable to work. However, depending on your financial needs, you may not need this much cover, in which case a lower rate might be more appropriate.

The only way to get these calculations right is to take the time to work out what your core expenses will be in the case of an accident, as well as the percentage of your income that could cover these costs.

Could you return to work early?

Depending on the severity of the risks in your business, it might be worth considering whether you could return to work on a part time basis while you recover, with your insurance payments altered to match.

Obviously, it is impossible to know ahead of time whether any future injuries will be mild enough that you can return to work on a part time basis. However, it may still be an option, depending on the risks you face.

Either way, this is something you should take seriously when choosing an insurance broker.

Understand your risk factors

Your age, whether you smoke and the nature of your work will all be taken into account when you look to find an income protection policy. Taking steps to minimise these risks before you take out a policy, by giving up cigarettes for example, may help to lower your long-term costs while also improving your health.