Public Liability Insurance

The cost of public liability insurance can vary depending on your occupation, the size of your business and the level of public liability cover that you need. If you are starting out as a tradesman, here is what you need to know about the importance and the cost of public liability insurance:

What is Public Liability Insurance?

Public liability insurance is a type of insurance that protects your business and covers you financially in case you or your workers are:


  • Found liable for damage to any property as part of your work, whether by oversight or negligence
  • Found liable if you injure or cause the death of another person due to your work

By obtaining public liability insurance now, you can save yourself from severe financial hardship should you cause an accident or injury later on.

Since most tradies work in a high-risk environment, these accidents and injuries can be common. If something unfortunate does occur and you are held responsible, you will be financially accountable for paying any expenses or losses to the third party, as well as any legal expenses associated with your case.

If you have public liability insurance, you’ll be able to make a claim and use the insurance to pay for these costs. However, if you don’t have public liability insurance, you will need to pay these expenses from your own income and as a result, you could be out of pocket hundreds of thousands of dollars. On top of this, you may also face heavy fines for operating your trades business without public liability insurance.

How Much Will Public Liability Insurance Cost?

  • There are many factors that can influence how much your public liability insurance costs. Your premiums will generally be calculated based on:
  • Your occupation or business type, such as whether you’re a carpenter, a landscaper or a plumber
  • How large your business is, including your workers and work sites
  • What your annual turnover is
  • The location and risk of your work sites. For example, a tradie working in a mine or at an airport will incur more risk than another tradie working on low-scale residential projects
  • Any other special tasks or “activities” involved in your job that might increase your everyday risk
  • How much public liability insurance cover you need – levels are often set at $5, $10 or $20 million

I’m Not Sure About the Cost of Public Liability Insurance – Do I Really Need It?

The answer is yes! In most trades, public liability insurance is compulsory and your public liability insurance costs will be unavoidable. Without public liability insurance, many businesses or clients will not hire you and in some cases, you may not even be able to run your business.  

However, even if public liability insurance is not compulsory for your trade, it is still a highly valuable cover to have. Without it, you could find yourself in an extremely difficult financial situation, facing thousands or millions in liability and legal costs and this can be enough to send you bankrupt or force you into selling your home and other assets. The cost of public liability insurance right now is only very small compared to the financial losses you could face in future.

Protect your business and get an online public liability insurance quote today or contact our trades insurance specialists on 1300 550 665.



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