Out of all forms of insurance for tradies, liability insurance is the most widely used and well known. If you work as a plumber, Public Liability Insurance is the best way to protect yourself financially if something goes wrong. Unfortunately, plumbers can work in high risk areas which means there is always a chance that something unexpected can happen. Public Liability Insurance protects you against any damage done to property or another person in the course of your work where you're found financially liable.
Another aspect of liability insurance is Product Liability Insurance as this protects you against personal injury or property damage that has taken place as a result of products you've installed. This means that if pipes you've installed were done incorrectly or against industry standards, you will be covered for any damage that's caused as a result of this. Product Liability Insurance is usually included in your Public Liability Insurance Policy.
Liability Insurance Across Australia
You'll find that Public Liability Insurance requirements for plumbers are fairly standard across Australia and policies don't tend to differ much between States. Some States require plumbers to have Public Liability Insurance in place before they can be given their plumbing license. Other States don't have this requirement but plumbers will find it difficult to enter work sites or obtain subcontracting jobs without liability insurance in place. Also, a lot of companies will include Public Liability Insurance as part of their contract requirements with new employees.
The minimum you can be insured for with Public Liability Insurance is $5 million, although this may need to be increased depending on the job you're doing. If you're self-employed doing small jobs, the minimum may be appropriate. However, if you own a large plumbing company with a number of employees or work at higher risk locations, speak to your insurance broker about the best level of cover for your needs.
Liability Insurance in Victoria
The only State where there is a significant difference in Public Liability Insurance for plumbers is Victoria. For Victorian plumbers, you will also need plumber's warranty cover included in your policy. Not all policies meet this requirement so make sure you double check with your insurance broker that this is included if you work in Victoria.
Public Liability Insurance is essential for plumbers, regardless of whether it's compulsory in your State or not. If you decide you want to risk it and just be careful when working, remember that sometimes you can have no control over things going wrong. Also, you will often be liable even if the damage occurs after hours on the work site or is caused by one of your employees. The financial cost of damages can run into the thousands of dollars and the last thing you want is to use your own hard earned money if you're financially liable.
At All Trades Cover, we specialise in providing insurance to tradies and can provide the best insurance package to suit your needs. To organise your Public Liability Insurance quote or for any other questions, give us a call on 1300 826 850 or fill in our easy online form for an instant quote!