Public Liability Insurance is one of the most popular forms of cover for tradies and, although generally not a legal requirement, is an essential form of cover. Public Liability Insurance is important for tradies as it protects you against claims for damages if you’re found liable following damage to property or injury to a person which has occurred while you’re at work.
One of the biggest questions tradies tend to have is the cost of Public Liability Insurance and what factors can impact on premiums.
What impacts on Public Liability Insurance cost?
The two main factors that contribute to your Public Liability Insurance cost are the type of work you do and the size of your business. When it comes to your work, the riskier your trade then the more expensive your premiums are likely to be. This is because for high risk jobs, there is more of a chance of things going wrong. If you have a fairly large business with a number of employees, you can also expect to pay more in Public Liability Insurance premiums as you will need to cover your employees and there is a higher chance of larger businesses making a claim.
The other factor that will contribute to the cost of your Public Liability Insurance is the amount you want to be insured for. Generally you’ll be insured for $5 million, $10 million or $20 million. However, some insurers are flexible with this amount. The higher the amount you’re being insured for, the higher your premiums.
There are a few factors that contribute to Public Liability Insurance cost but the price of your premium is well worth it considering you could be out of pocket thousands of dollars if you’re found liable following a claim. From a practical perspective, you may find it difficult to obtain work as a subcontractor or enter certain worksites without cover in place and a lot of contracts with stipulate that you must have Public Liability insurance in place.
Look at the details
When you’re getting quotes for your Public Liability Insurance, you may find that there isn’t actually that much difference in cost between the various insurers. However, the differences may be in the policies themselves and it’s worth having a good read of the Product Disclosure Statement before taking out a policy to make sure all your areas of risk are covered properly. Easier still, you can speak with your insurance broker who will be able to check that the Public Liability Policy is right for you and your broker will know to ask questions you may not have thought of.
All Trades Cover is Australia’s fastest growing trade insurance provider and provide reliable cover through Australia’s largest insurance group. Our focus on providing insurance to tradies only means that we understand your specific needs and can help you find an insurance package that’s right for you. For a quote on Public Liability Insurance or for any other questions, contact All Trades Cover on 1300 826 850 or fill in our easy online form.