The Australian Tradesman Network

Last month we put together a guide on insurance for tradesmen.  After the success of that guide we have decided to delve a little more into public liability insurance.

For any self-employed tradesman, public liability is one of the most important forms of insurance you can get.

It is also one of the most popular, mainly due to the fact that it is a mandatory form of insurance for tradesmen on most large work sites.

What does public liability mean?

As a self employed tradesman (including as a subcontractor) you are responsible for the financial consequences of any property damage or personal injury that you cause to another person.

This is the type of risk which can be covered by public liability insurance.  Instead of having to pay compensations costs out of your own pocket, these costs can be covered by your public liability policy.

Provided that the incident is covered by your specific policy working, the insurance company will pay all costs to cover the claim up to your maximum sum insured.

How does public liability help?

Small claims resulting from property damage can amount to nothing more than a few hundred dollars.  These types of claims are settled by tradies every day, and are generally paid directly by the tradie rather than going through the insurance company.

But sometimes these claims can be a few thousand, or even a few hundred thousand.  In extreme cases they can stretch into the millions.

These types of claims would send most tradesmen broke if they had to pay out of their own pocket, and this is where public liability insurance helps.

By having the correct public liability policy for your needs in place, you can help to ensure that the costs of a claim are covered by the insurance company rather than coming out of your hard earned profits.

How much does public liability cost?

The cost of public liability for a tradesman is generally quite low, although it depends on the type of business which is being insured.

A carpenter working as a sole trader on residential projects will only pay around $500 a year, but if you are running a large trades business with multiple staff and subcontractors you will pay a lot more.

The easiest way to find out the cost of your cover is to request a quote from an insurance broker.  Almost any broker should be able to provide a quote, but it’s generally recommended that tradies use a specialist tradesman public liability insurance broker.

More information

For more information on public liability insurance for tradesmen please speak with your insurance broker.  If you don’t already have a broker please visit our insurance page for our directory listings.

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