Tradesman Public Liability Insurance

November 1, 2012

qld public liability insuranceTradesmen 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.

Tradesman Insurance NSW

July 10, 2012

NSW TradesmanA tradesman operating in New South Wales will require a range of insurance covers.

Some forms of insurance for tradesmen are mandatory, whilst others are optional – but still a very good idea.

The most popular form of insurance for NSW tradesmen is public liability insurance, and in this article we will take a closer look at public liability for tradies.

What is Public Liability?

For tradesmen in NSW, a public liability policy will protect them against the financial consequences of inflicting unintentional person injury or property damage to a customer or other person.

In normal circumstances you would be liable for the costs of any claim against you, but with public liability insurance you can shift this responsibility to the insurance company, provided that the incident is covered under your policy.

Who Needs It?

Any tradesman who works for himself, either as a business owner or a subcontractor, will most likely need public liability insurance.

Many worksites, especially the larger sites, will have mandatory requirements for all self-employed tradesmen to hold public liability insurance in NSW.  In some cases they will also be required to hold income protection.

Regardless of whether or not it is mandatory for you and your business in NSW, public liability cover is simply a good idea for any tradesman or trade business.

How Much Does It Cost?

The cost of public liability insurance varies depending on the type of trade business that you operate.

The fact that the business operates in NSW won’t have a huge impact on the cost, but if you are based in NSW you will have to pay stamp duty at the rate set by the state.

Your public liability insurance cost will be based primarily on the level of risk that the insurance company believes you may pose.  A low risk trade and business will generally attract a lower cost, whilst a higher risk trade and business will attract a higher premium.

Getting a quote on your public liability insurance in NSW is quite straightforward.  The best option is to contact a insurance broker who can assess your needs and recommend a suitable policy.