Public Liability Insurance tips for Aussie tradies

Whether you are a plumber, carpenter or an electrician, your job as a tradie always involves risk for both you and your client.

After all, it is a physically demanding job. Every day you use potentially risky tools. There are many factors and variables beyond your control, no matter how vigilant and careful you are.

You never know when one of your power tools can damage your client’s expensive fence. You can even accidently knock over a pipe which leads to flooding. Or what if someone ends up with grave injuries after tripping over those wires laid by you?

In such scenarios, a tradesman can be sued for the damages to property and injuries due to their negligence.

Therefore, public liability insurance is always recommended for self-employed tradesmen or contractors to ensure protection against such risks.

Counted among one of the most important insurances for businesses of all sizes in Australia, public liability insurance can protect you against certain claims and damages associated with your job.

The insurance can cover the damages to someone else’s property or personal injury to others caused by your course of action.

This way, having public liability insurance ensures you peace of mind and financial security against big or small accidents caused by your job. Otherwise, you might end up paying a huge amount for the legal process and compensation which can undermine you and your business.

While public liability insurance is essential, it is important to choose suitable cover for your business activities. Make sure to choose a policy that covers your specific risks, needs and budget. This is because not all insurance policies are the same. The offers and coverage often vary based on insurance providers or your risk factor.

So, make sure to consider the factors given below while choosing public liability insurance for your trade.

Identify Your Business Risks:

Risk coverage is what a business insurance such as public liability cover is meant for.

Needless to say, taking into consideration your business risk factors is the first and foremost thing to do.

While some risks are present for all trades and contractor specific industry risks can differ.

For example, a plumber can accidently damage a pipe while a carpenter has to work carefully lest they should damage the entire structure. The job of an electrician is also dangerous as a minor fault can lead to fire breakout and injuries to others due to the faulty work.

As a tradie you need to consider the risks involved in your job.

Consider Suitable Coverage:

When choose the insurer ensure the policy covers most of those risks faced in your job. Ensure it covers all of your work activities are not just some.

Here are some key things to ask your public liability insurer:

• What activities can you cover?
• Are all my job activities covered within the policy ?
• How to make a claim?
• What are the inclusions and exclusions of this policy?
• Who is covered by the policy?

Check the Specific Guidelines of Your Industry In Australia

There are a few important requirements for specific industries in Australia which require a certain level of cover. For example, if you are Victorian plumber or Queensland Electrician public liability cove is mandatory.

Also, many business arrangements requires tradies and contractors to have public liability insurance. For example, you can be asked to present a copy of liability insurance by your client before working on their site.

Get Quotes from several insurance companies:

Admit it. Many tradies prefer the cheapest public liability cover.

But that’s not always the best option. It’s vital to get suitable cover for all your job activities are not just some. A cheaper policy might not give you all the cover you need and leave you helpless when it comes to making a claim.

However, that doesn’t mean you need choose the most expensive plan. The optimal solution is that you get quotes from multiple insurance companies to compare the premiums and the policy features.

A broker can help you can compare the policies for their prices, premiums and features to choose one that offers cover for all your job activities.

Check the Quality of the Insurer:

The last thing to worry about is the reputation and quality of an insurer. It might be bit challenging if you haven’t had much interaction with insurance companies in the past.

Here are some factors to determine the quality of their services and commitment:

• Check their online reviews being posted by their customers.
• Ask your fellow contractor who is using this form of insurance.
• Read their fine prints or terms or condition.

Final Thought:

You need to ponder over many factors while choosing public liability insurance for tradie in Australia. Investing a bit of time to think about all your job activities ; talk to colleagues and brokers who are familiar with your occupation, can you have suitable cover in place when you need it.

*Important: Cover may be available subject to meeting insurers underwriting criteria. Some of the covers listed may or may not be available or may have limitations or exclusions. Cover inclusions vary significantly from insurer to insurer. DO NOT rely upon the above. Check your policy schedule carefully for inclusions and exclusions and limitations. Talk to a business insurance broker for more information.