Public liability insurance is a vital part of any tradie’s day-to-day business. When it comes to plumbers and electricians, public liability insurance will be of utmost importance to you. Without it, you may not be able to operate your business – and if you are held financially responsible for any damages, the costs alone could be enough to make you insolvent.  

Public Liability Insurance Explained

Public liability insurance is an insurance that financially protects you in the event that you or your company causes damages or losses to a third party, whether by accident or through negligence.
If you are found responsible for an accident, damages, injury or death, you may be required to pay hundreds, thousands or even millions in liability. In addition to this, you’ll also need to pay for costly legal expenses. Public liability insurance ensures that you can afford these costs, without having to use your own savings or income. 

Why Is Public Liability Insurance Important for Electricians and Plumbers?

Public liability insurance is required for Electricians and Plumbers for several reasons:
  • You will need insurance for public liability in order to obtain an appropriate licence for your trade
  • In most cases, a company will not hire you as a contractor without public liability insurance
  • Many customers will also not hire you without a licence or public liability insurance
  • You will be held financially responsible for any damages that you cause; public liability insurance can make sure that you’re covered, so that you don’t have to worry about whether you’ll be able to afford the expenses
  • It’s also important to realise that your job as a tradesman is high risk; you constantly work on other third party properties and it should be important to you to protect your business and your customers or clients

Can’t I Just Be Careful?

Being careful on the job is important to every tradie, but it’s not a reason to avoid public liability insurance. No one ever means to cause accidents or damages to a third party, yet no matter how carefully you work, things can still go wrong and accidents and oversights can still happen.
  • As a plumber or electrician, you are often responsible for anything unfortunate that occurs on your worksite, even when you are not there (e.g. after hours)
  • Products and equipment that you supply are still tied to your name; if any wiring or plumbing malfunctions, you are likely to be responsible
  • Even though you are careful yourself, it could be one of your contractors or employees who produces work that results in defects, damage or injury

Important Public Liability Insurance Questions for Electricians and Plumbers

If you are starting out as an electrician or plumber, make sure you have the right insurance! Making smart insurance decisions now means that you’ll benefit in the long run if something bad happens. Questions you should ask yourself include:
1.     Can you operate your business or get an electrical/plumbing licence without insurance for public liability?
2.     Can you be 100% sure that an accident or oversight will never occur on your worksite?
3.     Do you care about the safety of yourself, your employees and your customers?
4.     Is it worth risking your income, your savings, your business, your home and your family’s welfare to decline public liability insurance? 
Public liability insurance can bring much peace of mind to any tradie business. The great thing about this insurance is that it can be tailored to suit your electrical or plumbing activities.
Are you an electrician or plumber? Get a public liability insurance quote online today or contact one of our insurance specialists on 1300 550 665.  



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