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The Importance of Public Liability Insurance for Tradesmen

Article | Safe Hands Insurance Group (November 30, -0001 12:00 am)

One business tool that every tradesman should purpose to have is the public liability insurance, also called insurance for tradesmen. Without this insurance, you risk paying thousands or millions of dollars in liability costs resulting from a mistake of your trade work.

About Public Liability Insurance for Tradesmen

It’s common knowledge that every single trade is a risk. Accidental damages and injuries can occur unpredictably, some of which can even end in fatalities. A public liability insurance cover is the shield that tradies use to protect themselves and their business from any damage that can be blamed on you.

When damage occurs during the performance of your trade work or because of it, the aggrieved person is likely to hold you’re financially responsible. You can suffer server financial difficulties and a potential bankruptcy if you were not adequately cushioned for this and you’re told to compensate for the damages or injury.

When Is A Public Liability Insurance Needed?

The truth is that insurance for tradesmen can save you from becoming insolvent, in addition to preventing you from suffering financial loss.
Visualise this possible scenario: you are a kitchen installer or carpenter hired by Lynette to renovate her old kitchen. In the course of work, you accidentally trip over a jar containing lacquer. The spillage destroys some of the new cupboards, and the owner demands that you replace the damaged goods which cost $5,000.

This may seem like a minor case, but when you don’t have the funds, it can be hell on earth. Insurance for tradesmen can cover the replacement cost and also purchase more supplies of lacquer. This is a lifesaver because otherwise you would have had to borrow the money in order to pay for the damages.

This is just an example of a minor occurrence but different industries come with varying degrees of risk. Picture this: months after you have completed your kitchen renovation project at Lynette’s home, an accident occurs in the kitchen as they are preparing breakfast with the mom. Because of your oversight, one piece of the cupboard above the stove falls on top of the pot of boiling water which spills over to the child causing severe burns.

According to Safe Hands Insurance director, Phillips Carr, under such a circumstance, you will be held liable for the child’s injuries, the cupboard, and any other thing that was damaged. Without insurance for tradesmen, you can find yourself paying hefty sums of money as compensation and legal fee. Any action that Lynnette takes against you has the potential of making your business insolvent.

The public liability insurance has been designed to offer you a peace of mind. Working without the pressure of a potential emotional or financial breakdown can help you use the best of your skills. There is a varying range of insurance products that fall under insurance for tradesmen. Generally, public liability insurance will cover you and your business against:
i. Injury to your customer of any third party in the work site.
ii. Death of your customer or a third party on the site.
iii. Damage to the customers’ property resulting from the service you’re offering.
iv. The financial loses of your customer or another third party in the cause of your trade work.
v. Damage to a third party’s property as a result of your services.