Public liability insurance is designed to protect you financially in an instance where you may be liable for costs related to injury to a third party or damages to their property caused by your business activities. To avoid substantial financial loss, it’s a good idea to look into obtaining public liability insurance. It can cover the financial payout if the claim is within your policy limits, which means you don’t have to risk your business and personal assets.
What happens if you have no public liability insurance?
If you find yourself without public liability insurance when you face a claim, you can find yourself out of your pocket due to covering the costs. It can be potentially damaging to your business’ finances. Depending on the incident, you may be responsible for the cost of medical bills, rehabilitation, repairs and other expenses. It makes getting public liability insurance one of the essential parts of running your business. Also, even if the claim against you is unsuccessful, you still need to pay for the legal expenses if you have to get legal representation and advice during the claim process.
Another reason to consider obtaining public liability insurance is a more straightforward process when you obtain your trade licence. Even though public liability insurance might not be a legal requirement, not having public liability insurance can make it more challenging for tradespeople to get a licence due to requirements from companies and their clients.
When you consider the worst-case scenario, you leave no room for unexpected financial loss. Accidents happen, and a lot of the time it is outside of your control, that’s why public liability insurance can provide you with security knowing that your business is protected.
Does house insurance cover public liability?
If you have home and contents insurance, most liability cases are covered. Australian policies generally include comprehensive liability insurance, which often ranges from $10 million to $20 million depending on the level of policy. This liability insurance covers you if an accidental injury happens to third parties (non-residents) on your property, as well as damage caused to their property. Although your home insurance policy will be fairly comprehensive, some important situations may happen where it doesn’t provide cover where you are found liable. For example, claims that involve your business or trade, damage to your property, responsibility for rental or leasing contracts and damage to property or injury to individuals who live with you.
If you need public liability insurance for your business, home and contents insurance might not be enough for you. It’s important to speak to an insurance broker to get a quote for public liability insurance that will provide you with enough cover for your work activities.
At All Trades Cover, we can discuss all the options available to you and help find the right public liability insurance for your business. We have an easy online quoting system through which you can get a quote that will outline all the necessary information for you to get starting with the cover. If you have questions you can call All Trades Cover on 1300 826 850, otherwise fill in our easy online enquiry form to get a quote now.