A Contractors Guide To Understanding Public Liability Insurance

Being your own boss and managing your own contracting business takes a lot of time, planning and responsibility. There are plenty of aspects of your business to think about, from accounting to marketing, staffing, keeping your customers happy and protecting your contracting business.  

This is where understanding Public Liability insurance* may assist with safeguarding your business for the long haul. In our guide we go over the basics of what Public Liability is and how it may help protect your contracting business.  

What is Public Liability insurance? 

Public Liability insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public are injured (and not covered by the Accident Compensation Commission (ACC) or sustain property damage as a result of your negligent business activities 

Why might contractors consider having Public Liability insurance? 

The field of contracting is broad and covers a lot of different industries from tradies to HR professionals, IT and management consultants. One thing which is common across all industry’s is that you are interacting with clients, whether that is by having them visit your business or you being out and about seeing them. 

This is where an element of risk may arise and Public Liability insurance may provide some peace of mind. Here are some other examples of when you may need to consider Public Liability insurance: 

  • One of the requirements of your contact may be that you have your own Public Liability insurance policy in place 
  • If you work on site at a third party premises you may be required to have Public Liability insurance  

What does Public Liability insurance typically provide cover for? 

Public Liability insurance protects your business by providing compensation for property damage and personal injury or death in circumstances not covered by the Accident Compensation Commission (ACC). 

  • Compensation for accidental damage to third party property 
  • Compensation for personal injury or death to third parties where the ACC does not provide cover 
  • Legal and defence costs 

What is not typically covered by Public Liability insurance? 

These are some of the things that are typically not covered by a Public Liability insurance policy. 

  • Personal injuries to you or your employees 
  • Damage to your own property 
  • Advertising Injury 
  • Costs of fixing faulty workmanship 
  • Professional negligence or illegal activity 
  • Reckless or wilful failure to take care 
  • Contractual liability 
  • Asbestos 
  • Pollution 
  • Events occurring before or after the policy period 

Claim examples of when Public Liability insurance may help^ 

These are some examples of when Public Liability insurance may help safeguard your business from a unexpected claim. Even when you take all the precautionary steps in the world when conducting your business, accidents and incidents can still happen. Consider the following scenarios: 

  • The cost that may be involved in repairing or replacing property that you may accidentally damage while renovating a client’s home 
  • Public Liability insurance typically provides compensation for personal injury or death to third parties where the ACC does not provide cover. Consider the cost if potentially multiple were involved with an incident and the costs which you may be liable for 
  • The legal and defence costs of a claim can add up very quickly! Your Public Liability insurance policy covers the applicable legal costs related to the cost of defending your claim 

How much does Public Liability insurance cost for contractors? 

There’s no one price fits all when it comes to the cost of a Public Liability insurance policy for contractors. However, there are a number of factors that are taken in to consideration when calculating the cost of a policy. Some of these factors include things like: 

  • Your occupation 
  • The type and nature of your business 
  • Your business turnover and size 
  • The amount of insurance cover your business requires 

Other factors that could affect the cost of your Public Liability policy include the location of your business, the inclusions and exclusions of your policy, and the insurance provider you select. 

To get an accurate idea of how much Public Liability insurance may cost for your contracting business, get in touch with BizCover today. We do the shopping around for you, making the process to get your cover sorted easy and simple, with no-dramas! 

Visit bizcover.co.nz and get insurance for your contractor business without the stress so you can get on with your day. If you’d prefer to pick up the phone and chat you can find us at 0800 249 268. 

*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Limited. 

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