Public Liability Insurance

How Does Public Liability Insurance Work?

Public Liability Insurance can protect contractors against outstanding costs associated with damages to third party property or injury to third party persons as a result of performing their daily work. These costs can become some of the largest financial losses a business can experience. Costs can run from a few hundred dollars for minor claims such as replacement of a smashed window to millions of dollars in the case of an extreme or serious fatal situation.

Rather than the contractor paying out of their own savings or business accounts, the Public Liability insurance will take care of the financial payout of the claim provided it is within the policy limits.

It is important to note Public Liability Insurance only covers third parties, people or property, not injury to yourself or damage to your own property. If you require insurance in the event of injury to yourself please take a look at Personal Accident and Injury Insurance, or for general property and tools take a look at Equipment Cover.

Who Needs Public Liability Insurance?

In some cases it may be necessary to obtain Public Liability before entering a new worksite. You can prove this by obtaining a Certificate of Insurance (also known as a Certificate of Currency) from your broker or insurer. It is always best to check with the location where you will be working to find out if Public Liability Insurance is mandatory for you. In the case of many trade contractors it will be mandatory, whilst for other contractors it is a great way to protect themselves, the business, and their assets against the financial loss a claim can bring.

If you are an employee then it is likely that your employer will have obtained cover for you, however it is always best to clarify this with whom you are working for. In the case of the self-employed, subcontractors, and contractors, you will be required to purchase your own Public Liability Insurance as you operate autonomously.

A claim against you can result in you being found responsible to pay for:

• Replacement of damaged property
• Repair of damaged property
• Legal defence costs
• Medical bills of claimant
• Loss of claimant income
• Rehabilitation costs for claimant
• Claimant counselling

And it’s important to remember that you don’t necessarily have to be on site for the claim to arise. An insured event may occur after you have completed the work such as faults with workmanship or chemicals used during your work if applicable.

So even if Public Liability Insurance is not compulsory for your type of contractor work, a claim can still hit you in the back pocket. Public Liability Insurance is a great way to ensure that your business and finances are protected from loss.

How Much Will Public Liability Insurance Cost Me?

Public Liability Insurance can protect you from the largest losses you may experience as a business, and it can do this at a surprisingly affordable price. The cost will always depend on:

• The type of contractor work you perform
• What industry you are in
• The size of your business in terms of revenue
• If you have employees or contractors yourself
• Where you operate
• If you work at hazardous locations
• How much you decide to insure for from $5 million upwards

The premium will essentially be determined by the potential risks your business faces and size of the businesses. The higher the risks and bigger the business the higher the premium, however premiums can start from as little as $30 per month for a low risk business. Check out our Contractor Cover quote form to obtain a number in just a few seconds.

Remember, make sure your insurance covers exactly what you do. Don’t risk saving a few dollars per month for cover that will be of no use when it comes to claim time. Underinsurance is a great financial risk to Australian businesses. If you need to double check your policy, give contact Contractor Cover and we will be more than happy to check it for you.

Where Can You Get a Quote?

The Contractor Cover quoting system is one of the fastest ways contractors can get a quote and arrange their Public Liability Insurance. We also offer professional services and advice for those contractors in high-risk jobs, or those working on very unique or technical contractor work.

It doesn’t matter what type of contractor you are, Contractor Cover can help you find the best Public Liability policy for your needs. To organise a quote just fill out our quick online form or give our office a call on 1300 438 268 to speak to our real-life team.