All About Tradesman’s Public Liability Insurance

If you’re a tradie, you may have heard about public liability insurance, but it’s not always clear as to why you need it or how it can benefit you. To help you out, here’s a quick guide to Tradesman’s Public Liability Insurance.

Due to the nature of their work, businesses that perform a specific trade – like carpenters, bricklayers, electricians to name a few examples – have an increased potential for risk. Simple things like damaging a client’s wall or a ceiling can be an expensive fixes, and this is where a Public Liability Insurance policy will protect you.

Not having Public Liability insurance means your business is just asking for trouble. Ideally, all tradies should hold a public liability insurance policy to protect themselves against injury or damage caused to third parties in connection with their business activities. While not compulsory, having insurance protects you, your business and your loved ones from the financial consequences associated with not being covered. Many businesses tend to overlook it, unless they’ve been asked by a potential client to provide evidence of cover.

In order to minimize risk, it’s also important for all tradesman to adequately assess the potential for injury or damage at each job site that they attend, and then to risk manage the potential losses. Simple things such as keeping the worksite area cordoned off from the public, having the correct fire fighting equipment and blankets nearby if welding, and having appropriate warning signs all assist in minimising the chances of injury or damage to third parties.

The level of cover (ie Sum Insured) that is held is generally up to the individual business. Sums Insured can still be obtained for $1,000,000 but generally speaking these days the minimum sum insured for Public Liability Insurance is $10,000,000. Given that the cost will increase with higher sums insured it is important that even a minor limit be held in order to protect your business. Should a third party sue you for damages caused, you do not want to expose your own personal assets knowing that you didn’t spend a few hundred dollars or so in insurance premiums.
These days, obtaining Public Liability Insurance can be done quickly and easily and insurance premiums are extremely competitive. If you do not currently hold Public Liability Insurance for your business, now is the perfect time to reconsider, as the potential for loss is far greater than the relatively small cost involved.
You run your business – trust us to protect it. Get in touch with us today to find out how we can help.