As a contractor, it’s up to you to ensure that all of your risk exposures are covered by the right insurance for ongoing peace of mind. If you work as a contractor in Australia, you’ll almost certainly require public liability insurance. Today, we’re looking at public liability insurance for contractors operating in New South Wales.
What is public liability insurance?
Public liability insurance provides you with financial protection if you cause damage to property or injury to a third party due to your actions at work. It also covers legal bills if you need to hire a lawyer during the claims process. A liability claim has the potential to be financially devastating for a small business and just some of the costs that you may be liable for include rehabilitation costs, medical bills, repairs and replacements.
Is public liability insurance compulsory in New South Wales?
Public liability insurance is generally not a statutory requirement for contractors in New South Wales, or anywhere else in Australia. However, it is a highly recommended form of cover and there is a general expectation that contractors will have liability insurance in place. Many employers will not take you on under contract without proof of public liability insurance and you won’t be able to enter some work sites, such as mine sites, without it. Not only does public liability provide you with financial peace of mind, it also provides peace of mind to employers and clients.
Although liability is usually not compulsory, the exception is for electrical contractors who work in Queensland. They are required to public liability insurance in place, as well as additional consumer protection insurance.
How much does public liability insurance cost?
The cost of your public liability insurance will depend on a number of factors such as the size of your business, the number of employees you have, the type of work you do, the location of your work, and your claims history. The higher your risk of a potential public liability claim, the more you can expect to pay in premiums. When you’re shopping around for a liability policy, you may find that there is not much difference in the various quotes you obtain. However, the difference may lie in the wording of the policy. Take the time to read the fine print so you can be confident that your liability insurance suits your specific needs.
At Contractor Cover, we make public liability insurance easy. We understand the specific needs of contractors in Australia and for that reasons we’ve bundled together the most common forms of insurance required by contractors into one convenient package. With us, you don’t need to worry about contending with multiple insurance policies – you only have a single policy to think about.
For more information about public liability insurance in New South Wales, contact Contractor Cover today on 1300 438 268.