The nature of trade work is quite risky. You are susceptible to injuries, property damage, and tool damage. The costs of these risks can quickly plague your business. Therefore, every tradesperson should have a public liability insurance policy.
Here is all the essential information you need to know about public liability insurance for tradespeople.
Who Needs Public Liability Insurance?
All tradesmen need public liability insurance cover irrespective of the sector they operate. Several things can go wrong for a trader. While some are in your control like not wearing protective gear, others are accidents that you never see coming. Either way, they all come with high risks, thus the need for insurance for tradies.
You don’t have to worry about damage you're liable for as long as you have the insurance cover. A public liability policy is necessary for both employed and self-employed professionals. Whatever nature of your employment, you still face similar risks. As such, an insurance cover is the only sure means of protection.
Is the Public Liability Insurance Cover Compulsory?
Most businesses prefer spending only on what they deem compulsory. In most cases, there is no legal obligation that requires you to have a public liability cover. The insurance for tradies is mainly to protect you against claims that arise in your line of duty. However, that is not to say you should make it an option.
Several worksites understand the need for protection and would only let you work when you have the cover. In such instances, you cannot access a construction site without a certificate of insurance.
The type of trade and licensing also determines the need for public liability insurance. Electrical work and plumbing are among businesses that come with mandatory property insurance requirements in most regions.
The Cost of a Public Liability Insurance
Public liability insurance cover is quite affordable for most businesses. The prices generally depend on the nature of the company. Customisation allows every business to pay different premiums based on the risks involved. However, hazardous sites like mines command higher premiums.
Another factor that determines the cost of property insurance policy is the size of the business. A company that has several staff members and handles large contracts pays more for premiums.
The cost of the policy also depends on the insurance company. Take your time to request quotes from different brokers then settle for the one with the best terms.
Taking out a public liability insurance coverage can be the difference between shutting down for good or weathering any risk. Lack of a cover affects your financial flow as you have to use the money out of pocket to clear hazards. Your company will shut when these risks become too much.
Are you looking for an insurance company that can cover your property in case of damage or accidents when working? Talk to Regional Insurance Brokers to get custom quotes for your business.