Public liability insurance
Public liability insurance for tradies.
Public liability insurance can help protect your trade business against the costs of a third-party claim for personal injury or property damage arising from your business activities.
What is public liability insurance?
Public liability insurance can help protect your business against claims from customers or members of the public for personal injury or damage to their property arising from your business activities. It can respond to claims that your business’s negligence caused the injury or damage, subject to the policy’s wording, limits and exclusions.
It can also provide a financial safety net by covering defence costs, including legal fees, and settlements for covered claims. This can help ease the financial burden of defending and resolving a claim, subject to the policy’s terms, limits and exclusions.
Public and products liability
For trade businesses, public liability is often arranged together with products liability. Products liability can help protect your business against claims for personal injury or property damage caused by items you manufacture, supply or install.
Why trade businesses consider it
- You work in customers’ homes, businesses and on building sites
- Property can be damaged while you’re working
- Customers, the public and other trades can be on or near your worksite
- Many jobs require you to show proof of public liability insurance before you start
- Contracts often require public liability insurance, and some set a minimum level of cover
The benefits go beyond protection against claims. Having cover can help build credibility and trust with customers and clients, by showing your business takes its responsibilities seriously and is prepared to respond if something goes wrong. In some industries, public liability insurance may also be a regulatory requirement.
Working as a contractor or subcontractor?
Subcontractors need their own insurance, and head contractors often ask for a certificate of currency before you start on site. We insure subcontractors the same way as any other trade business. If you’re taking on contract work, check what each contract requires so your cover can be set up to match.
How public liability premiums are assessed
Insurers assess business liability insurance through an underwriting process. When calculating public liability premiums, underwriters consider a range of factors, including:
- Turnover: the overall revenue your business generates
- Activities: the nature of your work and the risks that come with it
- Claims history: previous claims made by your business
- Years in operation: how long your business has been operating
- Number of employees: the size of your workforce, considered alongside the work they do
These factors are considered together, not in isolation. A business with 100 employees doing low-risk work doesn’t necessarily have the same liability exposure as one with 10 employees doing high-risk work. Similarly, two businesses doing the same work could pay different premiums if one turns over $100,000 a year and the other $1,000,000.
Examples
Example claim scenarios
These scenarios are hypothetical illustrations, not accounts of actual claims. Whether a claim is covered depends on the circumstances and the policy’s terms, limits, exclusions and excess.
Fencing installer: personal injury
A fencing installer is building a commercial fence. The customer comes to review the project and steps backwards into an uncovered hole drilled by the installer, twisting their knee and back. They bring a claim alleging the installer’s negligence caused their injuries.
In this hypothetical example, the settlement and associated expenses could be claimed on public liability insurance for personal injury.
Electrical contractor: property damage
An electrical business is supplying and installing a nurse call system in a care facility. While laying cables in the ceiling cavity, an employee slips and puts their weight on a fire system pipe, causing it to break. Water flows for about 30 minutes before it can be turned off, damaging at least seven rooms and residents’ belongings.
The business faces a claim alleging negligence caused the damage. In this hypothetical example, the settlement and associated expenses could be claimed on public liability insurance for property damage.
General information only. What a policy covers depends on its wording, limits and exclusions. A broker will review your business before recommending any cover.
FAQs
Common questions
Do I need public liability insurance?
For a lot of jobs, you’ll be asked to show proof of public liability insurance, and contracts often require it. A broker can help you work out what applies to your business.
What’s the difference between public liability and products liability?
Public liability relates to injury or property damage caused by your work. Products liability relates to injury or property damage caused by items you manufacture, supply or install. For trade businesses, the two are often arranged together.
What is a certificate of currency?
A certificate of currency is a document from your insurer confirming your policy is current and showing its key details. Head contractors and clients often ask for one before you start work.
How much public liability cover do I need?
It depends on the work you do, the risks involved and what your contracts or clients require. Some contracts set a minimum. A broker can help you work out a suitable level.
Does public liability insurance cover injuries to my employees?
No. Injuries to employees are usually covered by workers’ compensation insurance.
Does public liability cover damage to my own tools?
No. Public liability relates to claims from other people. Your own tools and equipment can be covered by tools of trade insurance.
Talk to a broker about your business
Ask for a review of your existing insurance, or request a quote for new or changing cover.
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