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.