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There aren’t too many business types which require public liability insurance by law, but tradesmen are one of the exceptions. Having proper insurance is mandatory for a tradie. Most tradesmen work for themselves, and are unable to generate income when they are injured. The nature of trade work often requires tradies to work in environments beyond their control, increasing the risk of injury at work.
Public liability is one of the most important types of insurance that a tradesman can have. For some tradies it is mandatory, whilst for others it is simply a smart way of protecting themselves.
It is essential that small businesses involving trade services speak with an experienced insurance broker, who can discuss the type of insurance available, and which can provide the small business owner with complete peace of mind. Further, it is necessary to take into account the insurances which might be required for various work sites or the relevant trade associations or memberships to which the tradeperson might belong.
As a tradesman there are plenty of things which can go wrong on the worksite, and due to the hazardous nature of some worksites the risks can be quite high.
Thankfully public liability insurance can reduce some of these risks at a very affordable cost.
A wide range of trade can be covered by tradesman insurance, including:
- electricians
- plumbers and gasfitters
- painters
- gardeners
- carpenters
- brickies
- handymen
- tilers
- lawn mowing
- cleaners
- builders
Which Tradesmen Need Public Liability?
Public liability insurance is important for all tradesmen who are self-employed or who are working as subcontractors.
As a self-employed tradie or subcontractor you are responsible for your own actions on site. If you cause property damage or personal injury to another person you may be liable for financial damages.
Many worksites operated by building and construction companies will have mandatory public liability requirements for all subcontractors working on a site. Without a certificate of currency they won’t let you on site.
Some tradesmen will require public liability insurance due to licensing requirements depending on their trade and the state which they are located in.
Common examples for mandatory public liability insurance include electricians in Queensland and Tasmania, as well as plumbers in Victoria. Without a policy in place you will be unable to apply for or renew a contractors licence.
Even if public liability cover is not mandatory for your situation, it is still a very effective way of protecting yourself if you are a self-employed tradesman.
What Is Public Liability Insurance?
It’s important to understand exactly what public liability insurance is. After all, if you’re going to the premiums you will probably want to know how you’re benefiting from it.
Public liability insurance was designed to protect tradesmen and other business owners from the financial risks of causing property damage or personal injury to other people.
If your business activities cause property damage or personal injury to another person you will generally be liable for any resulting financial costs. This can range anywhere from a few hundred dollars for a minor claim through to a million dollars plus in extreme cases.
Rather than having to pay this money out of your own pocket and risk your assets, you can take out a public liability policy. In this case the insurance company will take care of the financial settlement provided that the claim is within the policy coverage.
Public Liability Cost
The cost of tradesman public liability insurance is generally very affordable and can be had from as little as $40 a month, however the price can vary greatly depending on your business type and size.
The two biggest factors affecting premiums for tradesmen are the type of trade and the size of the business in terms of revenue and staff numbers.
If you do work in any hazardous locations such as mine sites and airports the premium will also be affected.
As with most types of insurance, the public liability insurance cost will generally be determined by the potential risk that you pose. If your business activities are considered higher risk you will be charged a higher premium, and if you are considered lower risk you will pay a lower premium.
The easiest way to find out how much your public liability cover will cost is to request a quote.
Insurance Quotes for Tradies
We can assist by arranging quotes for tradesman public liability insurance as well as providing service and advice through our insurance partners.
We have access to a number of insurance brokers and advisers who specialise in tradesman insurance and can assist you with public liability and other forms of trades insurance.
Types of insurances that can help cover a tradie might include:
- PUBLIC LIABILITY INSURANCE – coverage if a person suffers death or injury, or property damage as a result of a tradesman’s work, including legal costs involved in defending a claim
- PERSONAL ACCIDENT & ILLNESS – income protection cover for self-employed personnel who suffer illness or injury
- GENERAL PROPERTY INSURANCE – this can also be described as “tool insurance” and often covers loss, theft or accidental damage of business equipment and tools of trade
- VEHICLE INSURANCE – covers motor vehicles, vital for many tradespeople, from theft or damage
To obtain a quote on your insurance please complete our online quote request or give our office a call. Contact Us for expert guidance on the insurance best able to cover your small business.