Public Liability Insurance is pretty well known in the trades and is and one of the most common forms of insurance. This type of cover protects you from the cost of a claim resulting from any damage to a person and/or their property which happens while you’re working.
Some tradies make the decision to avoid taking out Public Liability Insurance (PLI) – usually as a way to save money. If you do decide to go down this path, it’s important to know that there are potentially some significant risks involved with this decision.
The Potential Consequences:
No matter how careful you are in your day to day work, accidents can happen. When it comes to causing property damage, it could be anything from reversing into something while operating machinery onsite to breaking a window or damaging furniture when working on a client’s home.
Injury to a person can also occur if someone trips over equipment or falls due to uneven flooring on a work site. However the damage or accident occurs, if you are found liable you could face costs for medical bills, rehabilitation, repairs, replacements or any other costs. These can run into the thousands of dollars, or potentially more.
It’s also important to remember that although Public Liability Insurance (PLI) is generally not a legal requirement, many employers won’t hire you as a subcontractor unless you have this cover in place. Some workplaces won’t even allow you on site until you have proof of cover. What’s more, many savvy customers will want to be assured you have Public Liability Insurance (PLI) in place before you carry out any work on their house.
Before you take out Public Liability Insurance (PLI), ensure you do your research. Have a close read of the product disclosure statement because there can be significant differences in the conditions of the policy other than the price itself. It’s a good idea to have a chat to an insurance broker about your specific needs.