• The Quick Guide to Liability - How Does it Apply to Insurance?
  • Chances are that in your work as a tradie you've heard people talk about liability. Insurance and policies such as Public Liability Insurance are generally essential for your line of work. But what does liability actually mean and how does it apply to you?

    Defining Liability

    Liability broadly means any legally enforceable obligation and usually relates to a financial obligation. In simple terms, if you're found liable for something, it means that you have a legal obligation to pay any costs or damages. If you don't fulfill your legal obligation once you've been found liable, there could be serious legal consequences.

    There are a number of circumstances that could see you being found liable if you work as a tradie. These could include a client tripping on equipment and injuring themselves, someone having an adverse reaction to products you've been using, accidental damage caused by you to client property during a job, and numerous other scenarios. If you're found to be liable, you could be up for the cost of medical bills, rehabilitation, replacement or repairs of property, or any other costs associated with the incident.

    Liability & Insurance

    If you work as a tradie, it can be all too easy to become liable for costs or damages on the job. Which is why there are specific insurance policies to cover you should you be found liable. Liability Insurance covers you for loss arising out of your legal responsibility after you've been found liable for personal or property damage. It will protect you and your business against unforeseen circumstances and covers both the cost of legal bills and any damages.

    The most common form of liability insurance for tradies is Public Liability Insurance. This form of insurance protects you financially if you're found liable after your actions in your capacity at work has caused damage to property or injury to a third party. For a lot of tradies, you won't be able to enter certain work-sites or get employment as a subcontractor unless you have this insurance in place. It's important to remember that your liability insurance will only cover claims made by external parties and won't cover employees.

    Product Liability Insurance is also very common and will cover the products that you install if they cause damage to property or a person. Product Liability Insurance is generally included in your Public Liability Insurance policy so you won't need to worry about taking out a separate policy. However, always double check that this is included as every policy is different.

    If you're found liable following your actions at work, it can be very costly as claims for damages can run into the thousands of dollars. Make sure you're protected by having liability insurance in place.

    If you have any further questions about liability or would like to discuss your insurance options, contact All Trades Cover on 1300 826 850 today and we would be happy to help. You can also fill in our online form for a hassle free insurance quote.