Tradesmen in are major users of public liability insurance, and here in Qld it is a mandatory form of cover for many tradies.
If you work as a subcontractor or self-employed tradesman on worksites, many of the building and construction companies will have mandatory requirements in place for this form of cover.
In this guide we will take a look at what public liability covers and how much it costs along with some other important information.
What Does It Cover?
Public liability will cover a tradesman for property damage or personal injury caused to others, provided that the incident falls within the wording of the policy.
Basically if you have acted negligently in your work and someone else has suffered property damage or personal injury as a result, your public liability policy will cover the costs involved.
It’s important to note that this form of insurance will not cover you for damage to your own property or injury to yourself. These risks can be covered by other forms of insurance however.
Why Do Tradies Need It?
Not all tradies will need public liability, but if you are self-employed or work as a subcontractor you will either be required to have it by the building companies, or at the very least it will be strongly recommended.
When you are on wages you are covered by your employer’s insurance if things go wrong, but once you switch to subcontractor status you are on your own. This is why public liability is so important.
Check out our subcontractor insurance guide for more information.
How Much Does It Cost?
The cost of the cover for any tradesman will depend on a number of factors including the type of work you do and the size of your business in terms of revenue and staffing numbers.
For a carpenter working as a sole trader with an average turnover the cover can be as cheap as $400 to $500. On the other hand if you run a large business and/or undertake high risk operations, the price can stretch well into the tens of thousands.
The easiest way to find out how much your cover will cost is to contact an insurance company or broker. A good idea for any tradie is to use a broker who specialised in trade insurance.
More Information
Whilst public liability is a fairly straightforward form of cover for most Qld tradies, it can get quite complex depending on the structure of your business and the type of work you do.
If you are unsure about your needs or the policy options available the best bet is to speak with a qualified insurance broker. To get in touch with a broker simply click on the quote button on the right of the page.