Public Liability Insurance for Tradesmen

 Public Liability Insurance for tradesmen is one of the most important types of insurances to have. Without Public Liability Insurance, you could face thousands or millions of dollars in liability costs if something were to happen as a result of your trade work.

What Is Public Liability Insurance for Tradesmen?

We all know that working in a trade can be high risk. Public Liability Insurance for tradesmen exists to protect tradies if they are held liable for any damages, injuries or deaths that occur due to their trade work.

When this happens, the person who has been harmed or the owner of the property that’s been damaged can hold you financially responsible. If you have to pay any compensation yourself, you could encounter severe financial difficulties and even become bankrupt.

However, if you have Public Liability Insurance, your insurance policy will cover these costs for you (providing the particular incident is covered by your policy). This means that no matter what happens, you won’t lose any money personally.

Why Would a Tradesmen Need Public Liability Insurance?

The main reason why Public Liability Insurance for tradesmen is so important is because it helps you avoid financial loss and prevents you from becoming insolvent.

Let’s say that you’re a carpenter or kitchen installer and you’ve been hired by Bob to build his new kitchen. While on the job, you accidentally knock over a tin of lacquer, which spoils some of the new cupboards. You are then responsible for replacing the damaged goods, which will cost around $5,000.

This is a fairly minor case in which a Public Liability Insurance claim can be made. Your insurance can cover the cost of replacing the cupboards, as well as buying more lacquer supplies. If you didn’t have Public Liability Insurance, you would have to pay the $5,000 out of your own pocket.

However, more serious circumstances can also arise:

One night, Bob and his son are preparing dinner in their new kitchen. Due to an oversight in your work, the cupboard over the stove collapses. The cupboard and its contents fall onto the stove and knock over a pot of boiling water. The water splashes on the child and burns him severely.

In this circumstance, you would be held liable for (a) the damage to kitchen and cupboards and (b) the injuries to the child. Without Public Liability Insurance, you could find yourself millions of dollars out of pocket paying legal and compensation fees. This second example would be a worst-case scenario, but it is one that you still want to avoid. If Bob takes action against you, your business could become insolvent and you may no longer be able to afford to support yourself.

Public Liability Insurance has been designed to limit this kind of risk, so that you can continue to run your business successfully, even if the worst does happen.

What Does Public Liability Insurance for Tradesmen Cover?

Different insurance policies will cover you for different things, so be sure to check with your provider regarding the details. However, in general, Public Liability Insurance will cover you for:

  • Injury to your customer or another person on your site
  • Damage to the customer’s property as a result of your work
  • Damage to another person’s property as a result of your work
  • Death of your customer or another person on your site
  • Your customer’s financial losses or someone else’s financial losses that occur due to your work

Public Liability Insurance is a lot more affordable than you might think. Apply online now or speak to one of our customer service representatives by calling 1300 550 665.



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