The irony with being a tradie is you specialise in repairing and building structures, but the profession is also prone to accidents resulting in injury and damage to property. Negligence can be a cause, of course, but what if it was the victim’s carelessness that led to his or her injury? What if the circumstances that led to an accident was beyond anyone’s control?
Don’t set yourself up for situations where all you can do is ask these questions. Let’s cut to the chase: what you need to think about/consider is public liability insurance customised for your business and the risks that come with your profession or industry.
The 101 on Public Liability Insurance
Public liability insurance protects tradies and businesses from compensation claims and offers financial coverage for legal fees and other related costs. This insurance applies when:
- A cyclist fell off his bike because he drove over a rogue brick while passing by your worksite and files a personal injury claim for your supposed negligence in keeping the area safe for the public.
- A client sought your advice on electrical wiring and followed it, but a circuit overload happened in his property just days later. He decides to press charges and files a claim for damage to his house.
- An employee dropped a mallet and broke the expensive tiles in an office lobby. The company wants you to cover the costs of labour and materials for repairing the broken tiles.
From these sample scenarios, you can get an idea of what public liability insurance for tradies typically covers.
Below are some of the financial protections of liability insurance for tradies:
1.Coverage for personal injury claims – You may be liable to pay compensatory claims to passersby and clients who get injured because of your or your crew’s negligence.
2. Coverage for claims on damage to property – Liability insurance will also cover the costs if you or anyone in your crew cause some damage to a client’s property.
3. Coverage for legal fees – Public liability insurance covers your legal fees. If the court decides to uphold the other person’s claims, it will also cover the plaintiff’s legal costs and compensation claims.
What’s NOT Covered by Public Liability Insurance?
On the flip side, the following are excluded in liability insurance policies for tradies:
1.Stolen tools, equipment or vehicles
2. Damage to your property (including tools, equipment and vehicles)
3. Your injuries sustained at work
4. Loss of income when you miss work because of illness
Not Required But Necessary
Public liability insurance is essential for all tradesmen. Accidents can happen despite our best efforts. It’s regrettable enough when they happen, and more so when you have to pay a shocking amount of money for reparations. There are also long-term repercussions to think of, like the damage to your reputation and clients you’ll lose if word gets out that you’ve been negligent in your work.
Protect your livelihood as a tradie. Secure a public liability insurance policy with coverage that’s tailor-made for you and your trade.
Contact us today and ask for a FREE QUOTE from IMAR Insurance.
To the extent that any material on this page may be considered advice, it does not take into account your objectives, needs or financial situation. You should consider whether the advice is appropriate for you and review any relevant Product Disclosure Statement and policy wording before taking out an insurance policy.