Public Liability Insurance for Tradies: What to Know
Whether you are a handyman or a plumber, as a tradie you take pride in your skills and tools. After all, your trade relies on these two things. But that does not mean you will not encounter problems on the job. What will you do if you damage your client’s property or injure a member of the public while working? An aggrieved person may ask for you to pay their costs or sue you. That is why you need public liability insurance. Public liability insurance for Tradies may cover the cost of injury or property damage to a third party caused by your business activities. Understanding the Importance of Public Liability for a Tradie Public liability insurance can financially protect you and your business from having to pay third party damages caused by your trade business activities. Although public liability insurance is generally not mandated by the government in Australia, liability cover is essential for high-risk trade jobs. You never know when things could go wrong in a way that could impact you and your business in a major way financially. For example, a plumber’s work may result in severe water damage. Someone can trip over the wires laid down by an electrician. A handyman can accidentally knock an expensive vase while working. A tiler’s customer can slip on a damp floor. Consequently, you can be responsible for a big payout. This might be the cost of repair or replacement in the case of property damage. For personal injury, it can be anything from medical bills through to lost income and other compensation. Keep in mind that third party liability claims can damage your finances, and a serious claim could put you out of business. With public liability insurance in place, you have peace of mind that a claim may be covered without having to dig deep into your own pocket. HOW TO OBTAIN PUBLIC LIABILITY INSURANCE Public liability insurance is designed to protect your business from expensive claims and lawsuits arising from injuries and property damage caused by your business to a third party. All trade businesses should have this cover in place. There are many factors that should be considered when choosing PL cover. This is because not all covers are equal. Understanding the Cost of Public Liability Cover for Tradesman The price of the cover varies based on several factors.
- Size of Your Business:
- Risk Factor:
- Ask your peers which insurance broker they recommend and why. You can also check online reviews and testimonials on Google.
- Consider if the insurance broker has experience in placing cover for your trade
- Consider the quality of the advice they have provided you with
- Insurance brokers in Australia are required to be licensed by the Australian Securities and Investment Commission (ASIC).