Does Public Liability Cover You If You Cannot Work?

No. Public liability covers claims made by other people for injury or property damage, not your own lost income. Most tradies carry public liability insurance, but what if you're the one who's injured and can't work? That's where personal accident and illness cover, or income protection, comes in.

In this article, we'll explore how public liability insurance and cover for yourself work hand in hand to help protect both your business and your livelihood. We'll also cover how Tradies365 can help with personal accident and illness cover.

Understanding public liability insurance

Public liability insurance can protect your business if a third party suffers personal injury or property damage due to your work. Whether you're a carpenter, plumber, electrician, or builder, this insurance is often required by head contractors, councils, licences or clients. Check the rules for your trade and state.

What it can cover

• Injury to others: If a client trips over your tools and gets hurt, this insurance can cover their medical expenses and any legal claims, up to the policy limit.
• Property damage: Accidentally drilling into a water pipe or damaging a customer's wall? Public liability insurance can pay for repairs or compensation, less any excess.
• Legal fees: If you're taken to court, the policy can cover the cost of your defence, even if you weren't at fault, subject to the policy wording.

What it doesn't cover

• Your own injuries or illness
• Damage to your own tools or property
• Employee injuries (a workers compensation matter)

Our brokers help trade professionals compare public liability cover that fits their work and the requirements of their contracts.

Why cover for yourself matters too

Public liability insurance can cover claims other people make against your business. Personal accident and illness cover is about you: if an injury or illness stops you working, it can pay a weekly benefit. How much, and for how long, depends on the policy.

Key benefits

• Part of your income: If you're off the tools for weeks or even months, this insurance can help pay your rent, mortgage, bills, and groceries, after the waiting period and up to the benefit in your policy.
• Injuries and illnesses: Depending on the policy, it can cover injuries, such as a back injury from heavy lifting, and illnesses, for the benefit period the policy sets.
• Important for self-employed tradies: Self-employed tradies don't get sick leave or workers comp, so this kind of cover can fill that gap.

Many self-employed tradies and subcontractors look at pairing personal accident and illness cover with their existing public liability policy.

How both insurances work together

Let's say you're on a job site and accidentally injure a passerby. Public liability insurance can cover their medical expenses and any legal costs, subject to the policy. But if you fall from a ladder and can't work for six months, personal accident and illness cover can start paying after the waiting period, depending on the policy, to help you meet your own financial obligations.

Together, these policies help protect:

• Claims made against your business by other people (via public liability insurance)
• Your personal income and lifestyle (via personal accident and illness cover, or income protection)

The two covers deal with different risks: claims made against you by other people, and your own lost income if you can't work.

Tips for managing your cover

To keep both types of cover working for you, here are some tips:

1. Review your coverage annually

Your business might have grown, taken on new services, or expanded into new areas, all of which can affect your insurance needs.

2. Don't buy on price alone

A lower premium can mean less cover or a longer waiting period. Compare what each policy covers, not just what it costs.

3. Use a broker who works with tradies

A broker like Tradies365, who works with Australian tradies, can compare public liability and personal accident and illness policies from insurers and help you choose.

4. Consider a package

Some insurers offer packages that combine more than one cover, for example public liability with tools cover. Fewer policies can make renewals simpler. Check what each part of a package covers.

Conclusion: two covers, two different risks

In the trades industry, accidents can happen at any time, to others or to you. That's why public liability insurance and cover for yourself both matter. One can protect your business from other people's claims; the other can pay a benefit while you can't work, depending on the policy.

Need help deciding on your mix of cover? Talk to Tradies365. We don't arrange income protection or life insurance. For your own income, we arrange personal accident and illness cover, which can pay a weekly benefit if an injury or illness stops you working, depending on the policy. We'll walk you through your options and help you choose cover for your trade, income, and lifestyle.