The Top Public Liability Insurance Mistakes Tradies Make

There are times when tradies can be under excessive pressure. Keeping track of all the details for your day to day activities, so it can be easy for things to fall through the cracks. Unfortunately, even an honest make can be extremely costly, particularly when it comes to your public liability insurance. The proper cover is crucial, so here we’ll explore the top public and product liability insurance mistakes tradies need to avoid.

Not Understanding Coverage

With so many different insurances that tradies need to protect their business, it can be easy to misunderstand the insurance particulars, and this can lead to compromised coverage. Public liability insurance provides cover for personal injuries or damage to any property due to something that you or your employees do. This differs greatly from workers comp insurance. It is designed to protect you from business negligence on property outside your business. If there is any damage to property or a third party, you will be protected from lawsuits and the potential bankruptcy that can result from legal action.

Thinking Public Liability Insurance Costs Too Much

Since public liability cover is mandatory, may tradies believe that policy prices are inflated. Fortunately, there are measures in place from the Australian government to protect tradies and other business owners from price gouging.

Of course, the cost of your public liability insurance will depend on your level of risk, your business size, your occupation, and the amount of coverage needed.

Omitting Crucial Details

Another common public liability insurance mistake is omitting crucial details. There are a great many factors the influence the pricing of insurance and the optimal levels of coverage, so it is essential to share your business information with your insurance broker. Omitting crucial details can leave you with insufficient cover or in a worst case scenario, you may face your claim being denied. Insurers have a right to deny claims when there is a discrepancy between the information that you provided and the claim circumstances. For example, if a subcontractor causes damage on your job site, but you failed to notify your insurer that you are working with subcontractors, your claim may be denied. Fortunately, professional insurance brokers are trained to ask all the right questions to ensure that they have the information needed for your insurance profile.

Not Having Public Liability Insurance

If you’re a tradie without adequate public liability insurance, you could easily find yourself in financially devastating circumstances. Even if you feel you have “good” reasons to not bother with public liability, you need to ensure that you, your employees, and your business is protected. Even if you think that you and your employees are careful, accidents can happen that are outside of your control, and you shouldn’t gamble your financial future on any variable. An insurance broker provides the flexibility and expertise to help you with your insurance coverage, so you can avoid taking unnecessary risks with your business.






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