Tradies Public Liability Insurances- How Much Do I Need?

Why is Public Liability Insurance so Essential For Tradies?

Because it’s the only insurance that protects you for damage to property or injury to a person if you’re found liable following a claim.  It will also cover legal costs if you need to hire a lawyer following a claim.  One of the most common questions tradies have is how much cover you need with Public Liability Insurance and we’re here to give you the lowdown.

How much public liability insurance is enough for my business?

There are three main tiers of public liability cover that insurers use and these are $5 million, $10 million and $20 million.  How much Public Liability Insurance you need will depend on a number of things including the type of work you do, how much risk is involved in your work and any specific jobs you’ll be undertaking.  Basically, the riskier your work the more cover you’ll need.

If you run a small business and have no employees, you might be safe having $5 million cover as you can be pretty well assured no damage would exceed this amount.  However, if you’re a larger business doing risker jobs or have a number of employees, you may want to opt for a higher amount.  For big jobs, you may find that the contract outlines a specific amount you need to be covered for with your Public Liability Insurance due to the financial risks if something were to go wrong.  This is particularly the case when carrying out a contract with a larger business or a government agency.

If you are opting for the highest level of cover with your Public Liability Insurance then you can also expect to pay higher premiums.  It’s always a good idea to review your level of cover when it comes to renewal time to make sure it’s still appropriate.  For example, if your business has expanded then you might want to up your cover.

Alternatively, if you’re opting for smaller jobs rather than larger contracts, your cover may be reduced.  The most important thing to remember is that the cost of damages can be huge if something goes wrong so you don’t want to risk being underinsured.

What to you do now?

Speak to your broker. When it comes to Public Liability Insurance, the amount of cover you’ll need will generally depend on the type of work you do and the risks involved.  If you’re not sure how much cover you need or if your needs have changed, have a chat to your insurance broker who will be able to best advise you.