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Do you work as a handyman? Have you been told you need public liability insurance? We can help!
Many handymen around Australia require insurance. Some are required to hold it for certain contracts they undertake, and some simply want it for the peace of mind that it can provide.
In this guide we will take a look what handyman public liability insurance covers, whether or not you need it and how much it might cost you.
What is Public Liability Insurance?
Public liability is a form of business insurance which is intended to cover the policyholder against the costs of a claim involving property damage or personal injury that they may cause to others.
If another person suffers property damage or personal injury as a result of your negligence, you may be liable for their costs which could range from a few hundred dollars to potentially millions.
Instead of having to pay this money out of your own pocket and risk bankruptcy, with the right public liability cover a handyman can protect them from this risk.
Examples of Handyman Claims
It’s one this for us to tell you what is public liability insurance, but to really understand how it can protect you we will take a look at two examples of claims involving handymen.
The first example covers property damage. In this example a handyman was carrying some timber through a client’s home, and after not concentrating for a moment he smashed an expensive light fitting and scratched the ceiling.
The client obtained a quote to replace the light fitting and repaint the ceiling which totaled $2,500. Instead of having to pay out of his own pocket, the insurance company covered the cost with the handyman only having to pay the $250 policy excess.
Example two covers personal injury. In this example the handyman was working in a small office and left a loose power cord running along the floor between two cubicles.
A worker tripped over the unsighted power cord and broke their wrist in the fall. The worker’s costs totaled $10,000 once medical bills and lost income were taken into account.
The insurance company investigated the incident and found that the handyman was negligent in leaving the power cord exposed, and they therefore paid the claim on the handyman’s policy.
Which Handymen need it?
Any handyman who works for themselves either as a business owner or subcontractor will need to consider public liability insurance.
Often handymen working for real estate agencies and property managers will be required to hold at least $10 million cover, and will be required to provide a copy of their certificate of currency.
If you are working on wages or salary for another company you will likely be covered by their insurance, however it is worth checking to make sure that you are not left exposed in the event that something goes wrong.
How Much does it Cost?
The good news is that handymen are seen by the insurance companies as a fairly low risk, which means that the cost of public liability insurance for a handymen is relatively low.
For a sole trader working in domestic homes only and with an average level of turnover, the cost for $5 million cover can be under $500 if you shop around.
If you require a greater level of cover the cost will be higher, and if you do any commercial or industrial work the cost can be higher again.
We can assist you with finding competitive quotes on your cover, so if you’d like us to help please call us on 1300 542 245 or complete our online quote request.