Public liability insurance is the most important insurance you can have as a tradesperson. It stops you from having to pay out of pocket if someone is injured while on your site. Public liability insurance covers you for claims made by third parties such as customers, visitors or passers-by who are injured while on your business premises.
Why You Need Public Liability Insurance
Public liability insurance, or PLI, is a type of insurance that protects tradespeople against claims of negligence. If someone is injured at your property and they sue you, PLI can be used to cover these costs. If a customer sues you because they feel your work was faulty or poorly done and the court finds in their favour, the public liability policy may help pay the legal costs associated with having to defend yourself against that claim.
PLI also covers situations where there is no injury but still a potential for large damages; if someone slips and falls on your property, it could be held against them (if they’re found negligent) and they could have to pay for repairs themselves. The public liability policy may cover those costs as well.
What Is Covered
Public liability insurance covers damage to property and injury to third parties.
If a tradesperson causes an accident, any personal injury awards will be paid by the insurer. If you accidentally damage someone else’s property in the course of your work, then this is also covered.
Public liability insurance also covers legal costs if you are prosecuted for an offence that is related to your work as a tradesperson (you must have been working at the time). This includes:
- Damage caused by faulty products or services provided by a tradesperson.
- Damage caused by products supplied or installed by a tradesperson.
- Damage caused by incorrect advice given by a tradesperson on premises they were not responsible for maintaining or cleaning.
- Injury suffered as part of an occupational hazard while carrying out duties under contract with another person/business.
How Much Liability Cover Do I Need?
There are a few things to consider when determining how much liability cover you need. How many employees do you have? What kind of work do they perform? How big is your business and what risks are associated with it?
At the very least, you should be insured against a minimum of $10 million in public liability insurance. If you’re going to have high-risk activities or employees working on the road, then this number will increase dramatically (and so will your premiums). If you run an average small business and don’t work at heights or on dangerous terrain, then $5 million in public liability insurance may be more than sufficient for your needs. On the other hand, if you run a large enterprise that does extensive construction work or has workers who are constantly exposed to chemicals and heavy machinery, then $15 million could be well worth considering as part of your coverage options.
What Is Not Covered?
You might think that public liability insurance covers everything, but there are some things that it doesn’t.
- Your own negligence and misconduct
- Your own property (this includes your tools)
- Your own employees or subcontractors
- Products that you sell to customers (because if something goes wrong with them, it will be your fault and the customer can sue you)
How Much Does Public Liability Insurance Cost?
The cost of public liability insurance depends on a number of factors, including:
- The size of your business.
- The type of business you’re in.
- The industry that you operate in; and,
- Your location.
If you’re looking for a professional tradesman or businessperson who can help with your public liability insurance, get in touch with us today!
Find out everything you need to know about public liability insurance
Public liability insurance is a policy that covers you in the event of a claim made against you by one of your clients. There are many types of public liability insurance available on the market, but they all serve the same purpose.
The first thing to know about public liability insurance is that it protects you from being sued by someone who has been injured or had property damaged while working on your premises, or during a job that you have subcontracted out to them.
Public Liability Insurance can also cover legal costs if an employee gets hurt while they’re at work and they need legal advice regarding compensation claims and other financial issues.
The cost of Public Liability Insurance varies depending on the company and how much coverage you want for your business, so make sure you shop around before committing to one provider over another!
Conclusion
We hope that this blog has helped you understand the need for public liability insurance, what is covered and not covered, and how much it should cost. If you’re still unsure about whether you need a policy, get in touch for more information on how we can help you out with all your insurance needs.