Public Liability Insurance is widely used amongst tradies because it protects you financially against claims for damages if something goes wrong while you’re at work. This could include damage to property or injury to another person. So what are the risks involved with not having Public Liability Insurance in place?
The Risks Involved
Potential for significant out of pocket expense – If something goes wrong while you’re at work, a claim for damages could see you out of pocket thousands of dollars. The risk for claims rises as your business grows and you take on larger jobs. Remember that if you’re found liable after a claim, you could find yourself responsible for the cost of medical bills, repairs, replacements, rehabilitation and any number of other expenses which is why Public Liability Insurance is so essential.
Difficulty obtaining work – Although Public Liability Insurance is generally not a legal requirement, some tradies will find they won’t be able to obtain their licence unless they have this cover in place. Also, some employers won’t take on subcontractors until they can provide proof of Public Liability Insurance and you’ll struggle to enter some worksites without it. Even if you only have a small business, a lot of clients will want assurances that you have cover before you start any work.
Expensive legal bills – Even if a claim for damages is unsuccessful, you might be left with a large legal bill if you’ve had to get legal representation or advice during the claim process. Public Liability Insurance ensures that your legal expenses are also covered, even if you’re not liable for damages.
Accidents happen – It can be easy to think it’ll never happen to you but unfortunately, no matter how careful you are, accident can happen and that’s why Public Liability Insurance is so important. From you inadvertently damaging property while operating equipment to someone tripping over uneven flooring or electrical wiring, it’s easy to see how claims for damages happen.
It’s Not Worth the Risk
The main reason tradies forgo Public Liability Insurance is for financial reasons and they see it as a way to save some money, especially if they only have a small business. However, the short term financial benefit isn’t likely to be worth it in the long run if you’re found liable for damages. Public Liability Insurance is one of the most widely used forms of cover for tradies, and for good reason!
When it comes to taking out Public Liability Insurance, it’s best to deal with a company who understands the specific needs of tradies. At All Trades Cover, we specialise in providing insurance to tradies and you can be assured that all your areas of risk are covered. With a hassle free online system, it couldn’t be easier for you to get a quote and have the right insurance in place.
To discuss Public Liability Insurance or for any other questions, contact All Trades Cover today or fill on our online form.