Public liability insurance is an incredibly beneficial and important insurance policy for tradies in Australia. Though it is not legally required for the majority of jobs, it is still the most popular type of cover taken out by tradies, across all business types and occupations. For good reason too. Public Liability insurance provides an important financial backstop in the event of an accident or damage on site to a third party, allowing your business and livelihood to continue. This coverage varies between insurers, so it can often be difficult to discern which benefits are included in your policy, and where you are covered. So, where and what are you covered for with an imar public liability policy?
What are you covered for?
Your work as a tradie is highly prone to accidents and while these situations may seem unlikely to you, they can and do happen all across Australia. So, it is important you are prepared to deal with the consequences of accidents, and keep your business running smoothly.
Put simply, public liability insurance covers the costs of a potential claim against you from a third party as a result of injury or damage. A third party essentially means someone who is not you or your employees, and could include the general public, your customers, your suppliers or contractors. You are protected for incidents occurring all over Australia, across both residential and commercial job sites. Below we have listed specifically what you are covered for regarding these incidents:
- Coverage for personal injury claims
- You may be liable to pay compensatory claims to passers-by and clients who get injured because of your or your employees’ negligence.
- Coverage for claims on damage to property
- Liability insurance will also cover the costs if you or any one of your employees cause damage to a client’s property.
- Coverage for legal fees
- Public liability insurance covers your legal fees during the claim process. If the court decides to uphold the other person’s claims, it will also cover the plaintiff’s legal costs and compensation claims.
Professional Indemnity Insurance vs Public Liability Insurance
These policies are often confused, however there are distinct differences in their coverage. Professional indemnity insurance protects you from claims that might arise from professional advice you give to clients for a fee. This might be through negligence, error or omission and your client might take legal action to recover losses. It does not include injury or property damage. Public liability insurance does cover injury and damage, but not general disputes over advice given.
What are you not covered for?
So, you now know what you are covered for. However, it is also important to know the limitations of your public liability policy, and what you are not covered for. The following are excluded in public liability insurance policies for tradies:
- Stolen tools, equipment or vehicles
- Damage to your property (including tools, equipment and vehicles)
- Your injuries, or injuries of your employees sustained at work
- Loss of income when you miss work because of illness
What does Public Liability Insurance cost?
As public liability insurance can be quite detailed, the cost of cover depends on your occupation, your state and the size of your business. To be 100% sure, chat to one of our experienced imar tradie brokers to get a detailed quote for free.
Your time is precious, so we make it as easy as possible for you in 3 easy ways:
- Call 1300 540 156 and press 1 to speak to our dedicated tradie broker team
- Fill out our online Contact Our Experts form
Go online and fill out the Quote form
You should consider if the insurance is suitable for you and read the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and policy wording before making a decision to acquire insurance. Please ask us for more details before we provide you with our services. Our FSG is available on our website.