Public liability insurance is a very important cover for all tradesmen. It provides compensation payments where you (your business or your employees) are deemed liable for third party property damage or personal injury. The financial impact of these claims (both defense costs and awarded payments) can be crippling, so it’s important to have the correct insurance in place for your business.
At Guard Insurance Brokers, we specialise in public liability insurance across all trades. We can help find insurance for your business in two ways.
- Online – obtain a quote within 5 minutes and if you’re happy with the price and coverage, you can purchase and receive your insurance paperwork, including a certificate of currency, right away. This is a great option if;
- You know what you need and are comfortable with public liability insurance,
- Require cover straight away, and
- Your business turnover is less than $1m and you employ less than 5 people.
- Contact Us – We have a team of professional insurance brokers that specialise in public liability insurance for tradesman. Please call or email us if;
- You would like to discuss the ins and outs of public liability insurance;
- You work at high risk locations – airports, railway stations, mine, quarries, shipyards, oil or chemical refineries.
- You business turnover is greater than $1m or you have move than 5 employees.
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Understanding Public Liability Insurance
Let’s be honest, reading your insurance policy cover to cover is probably not high on your priority list. But at the very least, it’s important to read and understand the exclusions in your policy wording. Generally it’s only a page or two long.
A few common exclusions we get asked about are;
- Faulty Workmanship – this is the cost of performing, correcting or improving any work undertaken by your business. Basically this means, if you’re contracted to perform some work and the work isn’t completed to the required specifications, the cost to re-do the work or fix the error is not covered by your liability insurance.
- Contractual liability – any liability or obligation assumed by your business under any agreement or contract. It’s important to review the contracts you sign to make sure they don’t include any clauses that hold your business liability for damage regardless of fault. If you do have such a clause in any of your contracts, it’s very important that you advise your insurance broker as some insurers will endorse your cover to include specific contracts.
- Professional Advice – financial loss from any design or advice you provide is not insurable under your liability policy. On larger projects, we are starting to see elements of design or advice being provided by tradesman. We recommend you speak to your insurance broker about this as it may be prudent to add an errors and omissions endorsement to you liability policy.
Insurers use endorsements as a way of adjusting the cover offered under their policy wording. Different insurers may add different endorsements to the same occupation, so when reviewing your liability insurance, make sure you look at any endorsements that are applicable. We understand price is important, however you also want to make sure you have a policy that will respond to claims.
Endorsements will be listed on your insurance schedule and generally place conditions, limit or exclude coverage offered by your insurance policy. As such, it’s really important to read and understand all the endorsements detailed on your insurance schedule. You may also be required to implement certain practices into your work activity to meet the conditions of these endorsements.
A few common endorsements we see on insurance schedules are;
- High Risk Area Exclusion – excludes cover for any claims resulting from work at specified high risk locations. These can include mine sites, air ports, railway stations, ship yards, and refineries.
- Underground Work – for cover to be valid, this endorsement requires you to make enquires with relevant authorities as to the location of any underground cables or pipes before commencing work. If you haven’t made effects to check the location of any underground property, the insurer can deny your claim.
- Increased Excess for personal injury to sub-contractors – this endorsement applies an increased excess to personal injury claims to sub-contractors that you have engaged to assist you complete a job.
- Welding / Hot work – for a cover to be valid, all hot work or welding activity must be conducted in strict compliance with the Australian Standard(s) issued by the Standards Association of Australia.
These are just a few endorsements that may be applicable to your liability insurance policy. Depending on your trade, it’s likely there will be others. If you’re not sure what any of the endorsements mean on your schedule, please contact us to discuss. We have insurance brokers that specialise in liability insurance for tradesmen. We can help you find the right insurance solution for your business.
1300 167 143