Public Liability is designed to protect your business in the event of the unexpected and is an essential form of cover. Even with the best of intentions, accidents can easily happen and liability insurance will protect you in the event of damage to property or injury to another person. To make sure you have the right level of protection, you need to find a public liability insurance policy which suits the specific needs of your business.
Today, we’ll be taking a closer look at how you can choose the best public liability insurance for your business.
What is public liability insurance?
Public liability insurance provides financial protection if you cause damage to property or injury to a third party as a result of your actions at work. It also covers your legal bills if you need to hire a lawyer during the claims process.
For tradies, the nature of your work means that there’s a higher risk of things going wrong which is why you need the peace of mind that public liability insurance offers. If you’re on the receiving end of a claim, you could be liable for expenses such as repairs, replacement, rehabilitation costs and medical bills which would be financially disastrous for most small businesses without cover in place. Also, it’s important to remember that there’s often an expectation amongst employers that you have liability insurance in place.
How to choose the best public liability insurance?
Assess your risk exposures
Public liability insurance is designed to protect you from your various risk exposures so it’s important to consider what these are. If you don’t take the time to assess your risks, you may not have sufficient cover. To find out what your risk exposures are, evaluate your business and consider all of the risks you face. It’s useful to tackle this by assessing your business activities and considering what could go wrong in each of these scenarios. Do you work at different sites? Do you have employees working for you? Does the nature of your work mean a higher chance of damage or injury? Considering your risks now can save you a lot of grief later on.
Consider what level of cover you need
When it comes to your public liability insurance, you need to consider what level of cover you need and you can generally choose from $5 million, $10 million and $20 million. The higher the level of cover, the higher your premiums will be. However, remember that choosing a level of cover which is too low for the sake of reduced premiums can have a huge impact on your business at claim time. The level of cover you require includes things like the industry you work in, the scale of the jobs you take on, and the level of interaction you have with members of the public. In some cases, it will be specified in your contract what level of cover you need to take out for a certain job
Look at the exclusions
To make sure you’re getting the best liability possible, you need to take a closer look at the fine print of the policy. Look at the exclusions and make sure they suit the needs of your business. In some cases, a certain exclusion may leave you exposed in the event of a claim. If you get a number of quotes and they’re all very similar, don’t just opt for the cheapest option – also read the policy itself to become familiarised with inclusions and exclusions. If you’re having difficulty understanding the policy, speak with an insurance broker for some professional guidance. If you need a specific area covered, you may also be able to purchase additional cover on your existing policy.
Be aware of industry obligations
There is no legal requirement for you to have public liability insurance in place. However, there is generally an industry expectation amongst tradies that you’ll have cover in place. In many instances, there will be a clause in your contract regarding public liability insurance if you’re taking on a new job and you may not be able to enter a worksite without a Certificate of Currency. In some situations, you may also have a compulsory requirement in your specific tradie, such as electricians, for liability insurance and you won’t be able to get your licence without cover in place. Make sure you’re aware of any specific requirements for your trade and keep in mind the industry expectations regarding liability cover.
Speak with your insurance broker
One of the best ways to ensure the best public liability insurance cover possible for your business is to speak with your insurance broker. They have the industry experience to assess your areas of risk and ensure that you have sufficient cover for your specific needs. If you require specialist cover, they’ll also be able to find you add-ons for ongoing peace of mind. Your insurance broker doesn’t just step in at claim time – they’ll also liaise directly with the insurer on your behalf in the event of a claim for the best possible outcome. Just remember to update your broker if there are changes in circumstances, such as you taking on more employees, as this may impact on the level of cover that you require.
Trade insurance experts
All Trades Cover are one of Australia’s fastest growing trade insurance providers and we work hard to bring you high quality insurance cover at a competitive price. Our focus on trade insurance means that we have massive buying power which ensures not only a great price but also that the wording of the policies is specifically suited to trades. Speak with us today about your insurance requirements and our team can help.
For public liability insurance for your business, contact All Trades Cover today on 1300 826 850.