When it comes to public liability insurance, there is no straightforward answer, whether it is mandatory in Australia or not. For some businesses, it can be compulsory, whilst for others, it is merely one of the ways of protecting themselves, their business and their assets. It all depends on your trade and in what line of work you are involved. But it is essential to keep in mind that even if your trade doesn’t require liability cover, you may still be at risk of a claim, which can result in significant financial loss.
At All Trades Cover, our insurance brokers understand risks and needs associated with all industries and can provide expert advice on tradesman insurance. Contact us on 1300 826 850 or get an online quote now to protect your business with public liability insurance.
In Australia, businesses are required to have liability cover if they operate under a government-issued licence. It can also include electrical and plumbing contractors, as well as tradespeople in instances where their association or landlord imposes insurance requirements. Generally, you will be notified if you are required to have insurance in place to operate at a worksite.
Even if your business doesn’t need to have compulsory business insurance, you should take into consideration all scenarios and get covered regardless. Taking this measure can help in preventing any potential lawsuits and financial loss in an instance where a third party gets injured or ill due to circumstances related to your business activities. Obtaining public liability cover will not only give you peace of mind during normal business operations but also protect you in an unfortunate situation or when an accident occurs. You will also protect your assets and save valuable time that you can spend focusing on your work instead of a lawsuit.
Legal requirements for public liability insurance
As we mentioned above, public liability insurance is not a statutory requirement. However, most small to medium-sized businesses still obtain this insurance to protect themselves in the event their professional activities cause injury to a person or damage to their property. It is essential primarily if your business interacts with public space, for example, parks, construction sites or schools. In any trade industry, you can also come across clauses in contracts outlining requirements for liability insurance. Therefore, consider obtaining this cover if the general public visits your work premises even if your business is based at your home and if you host off-site events accessible by the general public.
What does public liability insurance cover?
It is designed to protect you as a business owner from the financial losses in an instance where your business activities cause property damage or an injury to a third party. Generally, when this happens, you are liable for any financial costs related to a claim against you. Although minor cases can only cost you a few hundred dollars, there is a risk for more extreme circumstances where a claim can reach a million dollars or more. To prevent yourself from paying for it from your pocket that can lead to risking your business’ future success, you can obtain public liability insurance. It means that your cover will take care of the financial payout within your policy limits.
Why is public liability insurance vital for your business?
If someone is injured where you conduct your business or as a result of your professional activities or negligence, you may be held liable. To determine your liability, a court will examine various factors, including:
- The seriousness and probability of the harm occurring when care wasn’t taken
- The burden of taking precautions to avoid the risk of harm
- The social utility of the activity that creates the risk of harm
Suppose you did not have liability insurance at the time of the incident and a court finds you at fault. In that case, the resulting compensation payouts, court fees and legal costs can potentially cripple your business as you will have to pay out of pocket using your assets.
If you are a subcontractor, keep in mind that the majority of worksites operated by building and construction companies have mandatory public liability requirements for everyone working on a site.
As you can see, even if it is not mandatory in your case, it is an effective way to protect your business and your assets.
How can I get a public liability insurance quote?
At All Trades Cover, we offer easy to use an online quoting system that you can use to arrange your public liability insurance. If you are unsure what level of cover you require or work in a higher risk environment, we can also provide professional service and advice.
We, at All Trades Cover, can provide competitive insurance for all trades and all business sizes in Australia. Our insurance brokers understand risks and needs associated with your industry and can provide expert advice on tradesman insurance. You can contact us on 1300 826 850 or get an online quote now!