As a self-employed tradesman we have all heard just how important public liability insurance is, but what exactly is it and why is it so important? Read on for your ultimate guide to our liability insurance and discover all the ins and outs of this must-have insurance for any self-employed tradesman. You will also learn how you can get a hassle-free public liability insurance quote today.
What is Public Liability Insurance?
Public Liability Insurance is 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. Due to the hazardous nature of some worksites there are plenty of things that can go wrong. For example, if a third party were to trip on a work tool you left out and injure themselves, you would be held liable for their medical expenses. Thankfully, liability insurance can cover some of these risks and can protect a tradesman from some of the largest financial losses they can experience.
Why Do You Need Public Liability Insurance?
Liability Insurance is important for all tradesmen who are self-employed or who are working as subcontractors or contractors because if you are not covered and an accident happens, you could be up for an expensive lawsuit.
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. This could result in huge financial loss.
Plus, did you know that 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 so it is best to get yourself covered.
Some states and trades require business 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 contractor’s licence without proof the correct cover is in place.
Even if liability cover is not mandatory for your situation, it is still an effective way of protecting yourself, your business and your assets if you are a self-employed tradesman.
When Would You Need to Make a Claim?
You would make a claim for public liability insurance in the unfortunate event that your business activities have caused property damage or personal injury to another. This can range anywhere from a few hundred dollars for a minor claim through to a million dollars plus in extreme cases.
Once you make a claim, you will then take care of the financial payout provided that the claim is within the policy limits.
Liability claims are something that you do not go through very often, but they can be confusing or complicated when you do. Please never hesitate to call us if you are unsure of anything throughout the claims process.
What Does Public Liability Insurance Cover You For?
It will cover you for any expenses that incur due to the property damage or personal injury to another person that you are responsible for. Rather than having to pay this money out of your own pocket and risk your business and personal assets, you can take out Business Liability Insurance.
How Much Does Public Liability Insurance Cost?
The cost of tradesman insurance is generally very affordable from as low as $30 a month, however the price can vary depending on your business type, location and size.
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. Other factors affecting premiums are the type of trade, the size of the business in terms of revenue or employee numbers and if you work in any hazardous locations such as mine sites, high rise buildings, subsea, offshore, and airports.
The best way to find out how much your public liability cover will cost is to use our online quoter which can give you a liability insurance quote within seconds.