Public liability is a permanent risk for businesses, which makes insuring against it one of the most valuable forms of cover your business can have. Here's what you need to understand before taking on a new insurance policy to protect your company.
What public liability insurance is:
Public liability insurance refers to an insurance policy that protects members of the public from any harm that might occur as a result of your business activity. The cover will apply to third-party individuals and their property.
For a tradie, this allows you to be protected in the case that something goes wrong with your work and causes damage. Even the best tradies make mistakes, but having an appropriate level of insurance cover will make sure any errors can be easily fixed.
Fortunately, rates of public liability insurance are very high. According to the Insurance Council of Australia, more than 90 per cent of businesses have public liability insurance, making it the most common insurance policy for businesses.
What do tradies need to consider when choosing a public insurance policy:
For a tradesperson, choosing the right insurance policy will make a big difference to your overall levels of cover.
When it comes to public liability it is important to make sure that your cover is specialised to the work you do. If you find yourself working on large building sites, your cover will likely be different than for a tradie working on home renovations.
You will also need to understand what exclusions accompany your policy. Asbestos, welding and digging work will often not be covered by your insurance policy, which may be a concern if these are areas you commonly work in.
It is also worth considering what other policies should be taken out to accompany your public liability insurance. Workers compensation is less common but will help protect your business if the worst happens to an employee.
For further advice, you should definitely consult with an insurance broker who caters to tradies. They will be able to assess your needs and find the level of cover which is right for your business.