As a business person working in the trades, you are busy from morning to well past night, taking care of the essentials that keep your business moving. It is understandable if insurance is not frequently at the front of your mind. However, it is a necessity that has the potential to protect the company you have worked so hard to build.
One type of business insurance that is particularly vital for tradies, subbies, and one-person operations is public liability insurance. It can be what saves your livelihood if an accident occurs.
In this article you will understand the all things you need to consider in your public liability insurance
1. What is Public Liability Insurance?
2. If Public Liability is Not Compulsory, Can I Go Without It?
3. Will My Other Business Insurance Cover the Same Occurrences as Public Liability Insurance?
4. Does My Public Liability Insurance Cover the Sub-Contractors Who Work for Me?
5. How Much Public Liability Insurance Do I Need?
6. What Does Public Liability Insurance Not Cover?
What is Public Liability Insurance?
A public liability insurance policy will protect you if you directly or indirectly injure a third party or cause damage to someone else’s property while working on a job site. Public liability cover is frequently required for an occupations license. Federal, state, and local governments usually insist on proof of public liability cover for work on their property, and you may need to show proof of your cover before you are permitted to enter a worksite in many locations.
If Public Liability is Not Compulsory, Can I Go Without It?
You would be taking a massive gamble with your livelihood and personal finances by avoiding public liability cover. While no one would set out to damage a client’s property or cause physical harm, even the most conscientious and skilled tradie can have a bad day.
If an accident happens, you will want to have enough public liability insurance to cover the total amount of claims against you.
Will My Other Business Insurance Cover the Same Occurrences as Public Liability Insurance?
Generally, other business insurance will not offer the same protection as public liability cover. If you have a public liability policy, you will not be held financially liable if you or your team cause damage to a third party or their property.
**For Example** Nick operates a landscaping company. On a job site, he accidentally breaks a client’s window causing damage inside the home in addition to the window. Because Nick has public liability insurance, he will not need to pay out of pocket to repair the damage. Without public liability cover, Nick would have to come up with the money for repairs.
Does My Public Liability Insurance Cover the Sub-Contractors Who Work for Me?
Because your sub-contractors are considered to be self-employed, your public liability policy will likely not cover them. To protect yourself and your subbies, ask subcontractors about their public liability cover before they begin working with you. This is vital because there are cases where a company’s public liability cover has paid for damages caused by a sub-contractor but later went to the sub-contractor for reimbursement.
Make sure you check their Certificate of Currency, paying close attention to name on the certificate, date it was issued, occupation and policy period.
If you need public liability cover that covers your sub-contractors as well, you can contact us to discuss our options as we have tailored insurance options as well.
How Much Cover Do I Need?
Exact amounts of coverage will vary based on the individual and the nature of their business. Generally speaking, experts recommend a policy that will pay up to ten million dollars.
What Does Public Liability Insurance Not Cover?
There are several exclusions to public liability policies. You should speak with your insurance professional to find out specifics. However, the following are typical exclusions from public liability cover.
- Your Injury – If you sustain an injury on the job, a public liability policy will not cover your injuries. It is designed to cover third-party injuries and damages. However, you can speak to an insurance representative to find out about income protection insurance.
- Your Worker’s Injuries – Should one of your employees sustain an injury on the job, your workers’ compensation insurance will cover their medical bills.
- Injury to Sub-contractors – You must declare you use subcontractor even if it is once off job per year. As long as you declare it we can arrange the cover that would extend to the injury to subcontractors, however if you do not mention them and they get injured your insurer might refuse to pay out a claim·
- Your Equipment and Tools – If your tools or other work equipment sustains damage or is stolen, a property and tools insurance policy can pay for repairs or replacement depending on the details of the policy.
If you are a tradesperson, you have enough on your plate without worrying over your insurance cover. All Trades Cover is here to serve the busy tradies and makes sure they have the insurance they need to protect their livelihood. If you are a tradie, subbie, or sole-trader who would like to make sure your insurance needs are met, feel free to contact us. Our insurance experts are happy to talk with you and ensure you have the cover you need.
**Please Note** This material is for informational use only. It is not legally binding insurance advice and should not take the place of a consultation with an insurance professional.