Public Liability Insurance is used extensively by tradies and is one of the most widely used forms of cover. But is Public Liability Insurance in Australia compulsory and what would happen if you didn't take out this cover?
What is Public Liability Insurance?
First off, it’s important to know what Public Liability Insurance is and what it covers. Public Liability Insurance will protect you financially if you’re found liable for damages following a claim where your actions at work resulted in damage to property or injury to another person. This could be any scenario such as someone tripping over cables or your machinery damaging a client’s property.
If you’re found liable, you could be at the receiving end of thousands of dollars’ worth of damages. Costs that you’d be liable for can include medical bills, rehabilitation costs, repairs and replacements. Public Liability Insurance will cover the cost of these damages and will also cover your legal bills if you've had to hire a lawyer at the time of a claim. For tradies who generally have higher risk jobs where there is an increased likelihood of something going wrong, Public Liability Insurance is there to protect you from having to use your own money to pay damages.
Is this form of cover compulsory?
Although Public Liability Insurance in Australia is generally not compulsory, it’s an essential form of cover for tradies. Also, you might find that it’s more difficult to obtain employment as a subcontractor or to enter certain worksites if you don’t have it in place which shows the importance that employers place on this form of insurance. It’s also important to remember that a lot of clients will want to be assured that you have Public Liability Insurance in place so they know you’ll be able to cover the costs of any claim for damages.
You need to also remember that even though Public Liability is usually not compulsory, there can be different rules for certain businesses. Some trades have mandatory Public Liability Insurance requirements and others will find they can’t obtain their licences without proof of this cover. Also, although there may not be a legal requirement for Public Liability Insurance, the requirement may be written into an individual contract.
Public Liability Insurance is important for your financial peace of mind as you can be assured that you’ll be covered financially if something goes wrong while you’re at work. No matter how careful you are, accidents happen and you don’t want to find yourself thousands of dollars out of pocket following a claim for damages.
All Trades Cover specialise in providing insurance to tradies and will be able to advise about your Public Liability Insurance and help you find the right level of cover. If you’re not sure how Public Liability Insurance applies to your work, have a chat to your insurance broker about your situation.
Contact All Trades Cover on 1300 826 850 today to discuss Public Liability Insurance, or for any insurance questions, and we would be happy to help. For your convenience, you can also fill in our quick online form to request a quote.