Public liability insurance is one of the most widely used forms of insurance for contractors and if you don’t already have this cover in place, it’s something you need to consider. Given the importance of liability cover, we understand that you may have a few questions about this policy. Today, we answer some of the most commonly asked questions we get about public liability insurance.
What is public liability insurance?
Public liability insurance provides you with financial protection if you cause damage to property or injury to a person as the result of your actions at work. It also covers legal bills if you need to hire a lawyer during the claims process.
Why is public liability insurance important?
Public liability insurance provides peace of mind that you’re covered financially if things go wrong. Although you hope nothing would ever go seriously wrong, the unexpected can happen and all it can take is a simple incident for you to be on the end of liability claim. The costs associated with a liability claim can run into the thousands, or even hundreds of thousands, of dollars which is why liability insurance is so important.
While public liability insurance isn’t compulsory, some professions require proof of cover for their licencing requirements. Also, many employers will want you to have liability insurance in place before they take you on.
Will public liability insurance cover employees?
If you have employees working for you, they’ll also need to be covered under your public liability insurance. Make sure you let your insurer know if you hire new employees as your cover will need to be amended. However, if you have subcontractors working for you then they will often need their own public liability insurance – always check with your insurer what your requirements are.
How much public liability insurance do I need?
You can generally choose $5, $10 or $20 million worth of public liability insurance. In some cases, you contract with specify how much cover you need. The amount of liability cover you require will depend on how much risk is involved in the work you do – someone working on a mine site will require more cover than someone who works in an office. Consider your risk exposures and choose your level of cover from there.
How much does public liability insurance cost?
The cost of your public liability insurance will depend on a number of factors, including the type of work you do, the size of your business, the location of your work, the number of employees you have and your prior claim history. Remember to get a few quotes before you decide on a policy so you can be confident that the cover you’re getting is competitive.
Contractor Cover is the one-stop insurance shop for contractors across Australia. We understand the specific needs of contractors which is why we’ve combined the most popular policies for contractors into one convenient package. We’re partnered with the world’s largest insurer to bring you the best cover at a competitive price.
To get a quote on public liability insurance for your business, contact Contractor Cover today on 1300 438 268 or fill in our easy online enquiry form.