How Much Public Liability Cover Do I Need?

Public liability insurance is often required by head contractors, councils or licences, so many tradies and contractors carry it. But how much public liability insurance do you need? And what kind of cover should you look at? Read on for more information.

Public liability in one line

Public liability insurance can protect you from legal action if you cause injury to somebody else or damage to their property, depending on the policy. For the full explanation, read what is public liability insurance?, and for what a policy usually leaves out, read what does public liability insurance cover?

What a policy covers depends on its wording, limits, excesses and exclusions, and the insurer decides whether a claim is paid, so read the PDS (product disclosure statement) or policy wording before you decide.

Typical cover amounts ($5m, $10m and $20m)

Common limits are $5 million, $10 million and $20 million. The limit is the most the insurer will pay for a claim or event, depending on the policy.

Things that can push you towards a higher limit:

• Work for head contractors, councils or commercial clients, who often set a minimum
• Bigger jobs, or work inside occupied homes and businesses
• Work at height or near the public
• A bigger crew on site

If a head contractor, council or client has asked for a particular limit, choose at least that. A broker can help.

Working out your limit

How much public liability insurance you need depends on the nature of your business, as well as your industry. The higher the risk in your work, the more a claim could cost, and the higher the premium is likely to be.

The size of your team also affects how much cover you may look at against accidental injury claims, because more people on the job means more chances for something to go wrong. The type of work matters too. Work inside clients' homes, at heights or near the public carries more chance of a large claim, for example a burst pipe flooding a client's kitchen or a dropped tool injuring a passer-by. Contact us to talk about the cover limit for your business.

What sets the premium

The premium depends on the limit you choose, your trade, your turnover and how many people work for you. Read more about how much public liability insurance costs.

Speak to a broker about your public liability cover

To work out the level of public liability insurance for your business, speak to a broker. Brokers can compare cover from insurers and help you choose a policy and a limit that suits your work. They can help you understand what's covered, what's not and how much cover to consider for your situation.

As with any other business insurance for tradies, it's worth choosing your limit carefully. Get in touch or get a quote for public liability insurance.