The sole purpose of tradesman’s public liability insurance is to protect the tradesman or sub-contractor against financial claims in the event of damage to a property or injury to people (other than employees) that have been caused by the tradesman or a member of their staff.
If you are a tradesman, what would happen to your business if it was sued over property damage or a personal injury claim because of something that occurred whilst you were working at someone else’s premises?
Who does it affect?
It could easily happen. There you are on a jobsite and someone is accidentally electrocuted or they trip over your gear and sustain an injury. You will need enough public liability insurance cover for the full extent of the claims made against you. Liability claims and lawsuits aren’t just large company problems – they financially devastate tradesmen as well.
Why is it useful?
But what if something went wrong and someone tried to sue you? Would you have to sell your house to cover their damages as well as their legal expenses let alone your own?Public liability insurance is there to help when things turn nasty. All tradesmen and sub-contractors on a jobsite need to carry public liability insurance to protect themselves against personal financial ruin.
You also need enough cover.
While the industry minimum limit of indemnity is for $5 million, you really need at least $10 million. There is even growing demand for $20 million liability policies. These days injuries such as Quadriplegia to a young person need substantial 24/7 care for many years. You could be liable!
Also be aware.
Did you know that a contractor’s public liability insurance policy may not cover sub-contractors who may have been engaged for a job? Even if the main contractor’s public liability insurance responds in the event of a claim for which the sub-contractor is liable, the contractor’s insurer may still recover the claim amount from the sub-contractor. Sub-contractors are deemed to be self-employed. Always check that sub-contractors have their own current and adequate public liability insurance before allowing them to enter a job site.
When engaging labour hire workers, proper provision has to be made in the policy for them.
Electricians also have special requirements by law. It is important to check that your public liability insurance complies with the requirements of the State Electrical Licensing Board
Who can help?
The good news is that Tradesman’s public liability insurance premiums are affordable and may even be paid monthly for a small extra cost. If you want to know more about these policies and conditions relevant to your profession, contact a specialist insurance broker such as CPR Insurance Services.We can be contacted on 07 3123 1137 or 0439 530910. Email is .