How Much Public Liability Cover Do You Need?

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In an increasingly litigious society, business owners commonly take out Public Liability insurance cover for $5 Million, however $10 Million Public Liability policies are becoming more and more common.

Public Liability insurance is considered essential. In fact, many work sites won’t allow tradesmen or sub-contractors on-site unless they produce a Public Liability Insurance Certificate of Currency.

Public Liability Insurance provides business owners and sole operators including self-employed tradesmen and sub-contractors with financial protection in the event of a claim against them for an injury they cause to someone else or damage caused to someone else’s property.

While Public Liability insurance pays financial benefits for claims by members of the public, there are an increasing number of claims that are the result of injury caused by one tradesman to another while working on the job site.  

Public Liability insurance is fully portable within Australia and it covers you from site to site, so long as you remain working in the same trade.  If you change trades or move to work located in a more hazardous situation such as mines, refineries, wharfs and airports, you do need to inform your insurer otherwise you may find that you will not be insured.

Importantly, every tradesman must have their own Tradesman’s Public Liability Insurance policy.  You cannot rely on the head contractor’s Public Liability Insurance policy, even if in the event of a claim a pay-out is made, the head contractor’s insurance company may take action against you (the sub-contractor) to recover the money paid out in the claim.

Naturally, when it comes to any type of insurance, including Public Liability Insurance, some conditions apply.  For example, some occupations and locations have different risks that need to be considered by the insurer or noted on the policy to ensure full and proper cover for the policy holder.