As you know, liability insurance is popular with tradies as it protects you from the cost of claims if you cause damage to property or injury to someone while you’re at work. Tradies are at higher risk of claims because of the type of work they carry out which is why this type of cover is so important. But what’s the right level of liability insurance for you?
Getting the balance right
There are three main levels of cover provided in your liability insurance and these are $5 million, $10 million and $20 million. Some insurers can also offer some flexibility around the amount you can be covered for. The amount of cover you choose really depends on the needs of your business and the risks that are involved. A small business where you work from home and have no employees may be safe opting for the $5 million cover while a larger business with numerous employees may need to go for a higher level of cover.
However, it’s not just the size of your business you need to consider when choosing a level of cover. If you have a small business but are in a riskier line of work, like electricians or builders, don’t automatically go for the lowest level of cover as there is the potential that a damages claim could end up being a lot more expensive than that amount. Have a think about what the potential risks could be in your day to day work to help you decide on the right level.
Some contracts will specify the amount of liability insurance cover you need before you can start work on a project and there may also be a minimum liability insurance requirement before you can get your licence.
Leave it to the professionals
When it comes to choosing the right level of liability insurance for your business, it’s best to leave it to the professionals rather than guessing. In other words, have a chat to your insurance broker about the specifics of your business and they’ll be able to give you the best advice. Insurance brokers are experts when it comes to insurance and have industry knowledge to help you make an informed decision. The last thing you want is to opt for the lowest form of cover only to be hit with a massive claim that leaves you out of pocket.
It’s also a good idea to let your insurance broker know if there are any changes to your business activity, such as taking on a number of new employees or getting a large contract, as your level of cover might need to be altered. Remember, your level of liability insurance can always be reduced down the track – you’re not locked in forever.
When it comes to choosing a liability insurance policy, go with a company who specialises in your area of work. All Trades Cover offer insurance only to tradies which means we understand your needs when it comes to insurance.
Contact All Trades Cover on 1300 826 850 today for further information on liability insurance or for a quick quote. If you find it hard to find to the time to make a call, fill in our hassle free online form.