Public liability insurance is one of the most important forms of cover that tradies should have in place as it’s designed to protect you when things go wrong while you’re carrying out your work. We all know that liability insurance is important but is it a legal requirement? Today, let’s take a closer look at whether public liability insurance is compulsory in Australia.
What does public liability insurance cover?
Public liability insurance will cover the costs of damages to property or injury to another person if you’re found financially liable following a claim. It can also cover your legal costs if you need to hire a lawyer during the claims process. No matter how careful you are in your day to day work, accidents happen and unforeseen circumstances could see you on the receiving end of a claim for damages. A claim can be devastating financially and the last thing you need is to use your own hard-earned savings to cover the costs.
Every public liability insurance policy is different and it’s important to check the policy or ask your insurance broker to make sure the policy is right for you. Some common scenarios that your policy is unlikely to cover are deliberate damage or injury, unlawful activity, and personal injury or property damage to yourself or employees.
Is public liability insurance compulsory?
There is no statutory requirement for tradies to have public liability insurance in place in Australia. However, there is a general expectation in the industry that tradies will have cover in place. For many tradies, you may struggle to find work as a subcontractor unless you have public liability insurance in place and this is often a prerequisite for entering many worksites. Further, you’re often required to provide proof of liability cover as the terms of a contract.
There is a significant difference in public liability insurance is for electricians in Queensland. For Queensland based electricians, they must have public liability insurance in place as well as an extra $50,000 in cover known as consumer protection insurance. All policies which meet the criteria for eligibility for an electrical licence in Queensland must include consumer protection insurance so double check that this is included in your policy if you’re going to be working in that state.
Trade insurance experts
At All Trades cover, we’re the tradie insurance experts. We understand that you face a number of risks when carrying out your work and with that in mind we offer our trade insurance package for the best cover at the best price. As one of Australia’s fastest growing trade insurance brokers, we have a strong focus on providing excellent customer service from taking out your policy to stepping in at claim time.
For more information about public liability insurance Australia, contact All Trades Cover today on 1300 826 850 or get the ball rolling with an online quote.