What Is Public Liability Insurance?
Due to the hazardous nature of some worksites there are plenty of things which can go wrong. Thankfully, Public Liability Insurance can cover some of these risks at a very affordable cost. Public Liability can protect a tradesman from some of the largest financial losses they can experience.
Public Liability Insurance was designed to protect business owners from the financial risks of causing property damage or personal injury to other people in the day to day operation of their businesses. (It doesn't cover injuries to you - that's Personal Accident and Illness - or your employees - that's Workers' Comp.)
When your business activities causes property damage or personal injury to another person you will generally be liable for any resulting financial costs. This can range anywhere from a few hundred dollars for a minor claim through to a million dollars plus in extreme cases.
Rather than having to pay this money out of your own pocket and risk your business and personal assets, you can take out Public Liability Insurance. The insurance company will then take care of the financial payout provided that the claim is within the policy limits.
Who Needs Public Liability?
For some tradies it can be mandatory, whilst for others it is simply a way of protecting themselves, their business and their assets.
Public Liability Insurance is important for all tradesmen who are self-employed or who are working as subcontractors or contractors. Basically, if you're not under a direct employee - employer relationship then you have a risk exposure which the right liability policy can cover.
As a self-employed tradie or subcontractor you are responsible for your own actions on site. If you cause property damage or personal injury to another person you will be liable for financial damages, legal defence costs and other charges. In fact, your workmanship could get you into grief long after you've left the worksite, finished the job completely or even after you've retired.
Many worksites operated by building and construction companies won't let you on site without a Certificate of Currency (sometimes called a Certificate of Insurance). They generally have mandatory public liability requirements for all subcontractors working on a site.
Some states and trades require public liability insurance due to licensing requirements such as electricians in Queensland and Tasmania, as well as plumbers in Victoria. You will be unable to apply for or renew a contractors licence without proof the correct cover is in place.
Even if public liability cover is not mandatory for your situation, it is still a very effective way of protecting yourself, your business and your assets if you are a self-employed tradesman.
How much does Public Liability Cost?
The cost of tradesman public liability insurance is generally very affordable and can be had from as low as $30 a month, however the price can vary depending on your business type, location and size.
The biggest factors affecting premiums for tradesmen are the type of trade and the size of the business in terms of revenue or employee numbers. Also if you do work in any hazardous locations such as mine sites, high rise buildings, subsea, offshore, and airports the premium may also be affected.
As with most types of insurance, the Public Liability Insurance cost will be determined by the potential risk that you pose. If your business activities are considered higher risk you will be charged a higher premium, and if you are considered lower risk you will pay a lower premium.
The easiest way to find out how much your public liability cover will cost is to use our online quoter which can give you a quote within seconds.
An important thing to remember is to get insurance for the trade you will be performing and follow your duty of disclosure. If you perform a task outside of what you said you would do, the insurer might not cover you in the event of a claim. It's not worth getting a policy that doesn't cover you to save a couple of dollars a week. If you want to check what your policy covers, contact us.
Where can I get a Liability Insurance Quote?
Our online quoting system makes arranging quotes for tradesman public liability insurance one of the quickest ways a tradesmen can arrange cover. On top of this we also provide our professional service and advice for those trades that are higher risk, technical or unique trades. No matter what your trade is we can assist.