When it comes to business insurance and tradie insurance, there can be a lot that tradies and subcontractors can benefit from understanding. The sheer number of unique risks that tradies are required to manage may seem overwhelming, which is why many tradies choose to reduce their risk via trade insurance.
This tradie insurance guide will delve into Public Liability insurance for tradies, which is arguably one of the key types of business insurance coverage tradies can have to reduce their risk and protect their business as well as themselves.
What is Public Liability Insurance?
As one of the more popular types of business insurance for small business owners, Public Liability insurance can benefit just about every kind of trade business.
Public Liability insurance protects your business from claims by members of the public regarding injury or property damage arising from your business activities.
Public Liability insurance is considered a crucial type of business insurance for tradies in New Zealand due to the fact that small business owners could be held responsible for injuries to individuals who have come into contact with your business.
It may be labourers, customers, or simply members of the general public. It’s worth noting too that whether you have employees or operate as a sole trader, Public Liability insurance can be a critical strategy for reducing the risks to your trade small business.
Regardless of how big or small your trade business is, Public Liability insurance can cover your business and provide compensation for instances of personal injury, property damage, or death (when not covered by the Accident Compensation Commission (ACC)).
Some common examples where New Zealand small business owners may benefit from holding trade insurance such as Public Liability insurance include:
- Covering the costs involved in repairing or replacing damaged property, such as property damage to a home you are renovating for a client.
- Compensation for personal injury or death to third parties where the ACC does not provide cover.
- Legal and defence costs related to the cost of defending your claim.
While Public Liability insurance isn’t a legal requirement for tradies in New Zealand, choosing to reduce your risk via business insurance may make good business sense if you intend to operate your trade company for the long-term.
Mistakes can happen, but Public Liability insurance can reduce their impact on your business and help your business recover and continue trading.
When will Public Liability Insurance help your trade business?
When you choose to reduce your tradie risk with tradie insurance such as Public Liability insurance you will be covered for instances of:
- Compensation for personal injury or death to third parties where the ACC does not provide cover.
- Legal and defence costs.
- Compensation for accidental damage to third party property.
When will Public Liability Insurance won’t help your trade business?
It’s worth noting that the following events are generally not covered by Public Liability insurance yet can be covered by other types of business insurance available through BizCover NZ.
- Injury to your employees.
- Damage to your own property.
- Compensation for personal injury where cover is provided by the ACC.
- Known claims and circumstances.
Reasons why tradies may consider Public Liability Insurance
The financial consequences of a claim against your trade business could not only put you out of business but also jeopardise your personal finances as well. Public Liability insurance can have your back when things don’t quite go to plan.
For some tradies, holding Public Liability insurance can even be a contractual requirement for certain jobs. You wouldn’t want to miss out on winning new work, so it may be worth your while to ensure that your trade business has the level of cover that is required for the jobs you want to pitch for.
Can I get Public Liability Insurance for my trade business?
While certain trade professions may require other types of business insurance cover as well, generally speaking tradie insurance can provide coverage for the following types of trade professionals in New Zealand:
- Bricklayers.
- Residential builders.
- Electricians.
- Handymen.
- Carpenters.
- Gardeners.
- Decorators.
- Painters.
- Plumbers.
- Tilers.
- Shop fitters..
- Plasterers.
- Mobile mechanics.
Five situations where Public Liability Insurance can help tradies
- Accidentally causing damage to someone’s property.
- Accidentally injuring someone.
- Public Liability insurance may be a mandatory requirement in order to obtain your trade licence.
- You may need to hold Public Liability insurance to access and perform trade work on certain building sites.
If someone is injured as a result of your work or worksite, depending on the nature and severity of the injury, you may be required to pay for their recovery, rehabilitation, and replace their lost earnings. Also, there may be various legal fees associated with such incidents. It’s a similar story with property damage as well.
As you may imagine, this can all add up very quickly and lead to financial woes for your tradie business and for yourself as well. However, if you have reduced your risk with Public Liability insurance, you can be in a position to recover and continue doing the work that you love.
BizCover helps tradie small business owners throughout New Zealand to reduce the risks to their business via tradie insurance*, including Public Liability insurance. Visit bizcover.co.nz and get trade insurance for your trade business without drama and get on with your day. If you’d like 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. © 2022 BizCover Pty Limited. BizCover Limited is owned by BizCover Pty Ltd (ABN 68 127 707 975).
