Public Liability Insurance is the most common form of insurance for Australian businesses. And there is good reason for this. It doesn’t matter how careful or skilled you are, at any time the unexpected can occur in the workplace. And if you are found to be responsible for any damages or injuries caused to third parties by the insured event you will have to fork out the cash to pay for the bills associated with them.
Thankfully, with Public Liability Insurance you can protect your pocket against this scenario and have the insurer step in to pay the brunt of the financial impact at a very affordable rate.
The nature of being a contractor means you often go out to visit your clients and perform work on their site. This opens you up to many unknown risks and potentially hazardous situations. Working in an unknown environment can also equal mistakes, accidents and unforeseen circumstances.
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.
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:
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.
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 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.
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 GETCOVER (1300 438 268) to speak to our Contractor Cover real-life team.