Many tradies get public liability insurance because their worksite, or contract requires them to provide a Certificate of Insurance (or confirmation of insurance), but other than just to provide them with the Certificate, is there a point in getting the cover?
When something goes wrong on site or in a job, there is generally someone who loses out financially. It’s entirely reasonable that they can seek to recover the losses which have been made. Even if the incident occurred through no fault of your own whatsoever, you may still have to defend a claim and accusations made against you or a staff member. Defence cost can run into the hundreds of thousands of dollars in the event of a major claim.
If found liable, even if you were not 100% at fault, you could have what they can a contributory negligence where you are held liable for a percentage of the claim.
Some questionable operators may think that should there be a significant claim against you then you would just wrap up the business and walk away. However, there are consumer protections in place that could see you being held personally liable and risking the loss of your personal assets like you home, vehicle and valuables. As you can see, there are benefits of having a policy in place, not just when you need to access a worksite.
There are many people that will tell you that they have been operating for years without a claim, and this is true, however when a claim is made, it’s a doozey. Without a policy in place, a significant claim could literally cost you everything you own as well as a debt from which you might take years to recover.
Considering what is at stake, many tradies see the value of having insurance, especially considering how cheap it is.
It’s quite simply not worth the risk!
This blog is not intended to be advice and you should not rely on it as a substitute for any form of advice.