Here’s Why Insurance for Tradies Should Cover Product Liability

As a tradie in Australia, you face numerous challenges in order to run your business smoothly. To deal with uncertainties, having public liability insurance is considered important, but you need something more. Product liability insurance provides the additional coverage you require. You may wonder why you need it if you are not the manufacturer. Continue reading to learn why you need this insurance and how to obtain it in Australia.

Difference between public and product liability insurance

Many people get these types of insurance mixed up and use them interchangeably. But there is a distinction between them. The cost of damage caused to a third party as a result of your actions at work is covered by public liability insurance. It includes property damage and legal fees at the time of the claim. Product liability insurance, on the other hand, covers any product-related damage. It applies to sellers, manufacturers, service providers, and traders when a product causes injury or damage after installation.

Many tradespeople are unaware and believe they do not require product liability insurance, but they should. Even if the manufacturer is eventually caught, a tradie will need a large sum of money to cover legal expenses. Despite these distinctions, product liability and public liability insurance are sold as a package. Both of these must be included in insurance for tradies to assist them in difficult times.

Need of public and product liability insurance for tradies

The financial consequences of any third-party claim related to products and services can be disastrous, and you must have insurance to protect yourself.

Accidental damage to someone’s property

Tradies' jobs entail moving tools and heavy building materials from one location to another. Accidents and incidents are unavoidable while performing these tasks. An antique vase being knocked over, damage to walls and flooring, or something similar can land a tradie business in hot water and cause major problems with finances and goodwill.

Accidental injuries

Being a tradie is not an easy job. An unintentional injury to a third party can have a significant impact on the business, which no business owner wants to face. People can be protected by safety measures, but some claims are the result of slips, trips, and falls on the job. An injury from tripping over a loose power cord may appear minor, but it can have far-reaching consequences for your business.

Tradies need it for license too

Different trades have different requirements that require the acquisition of a license by business owners. Small businesses are very likely to have public and product liability insurance. If you want one, you can get an online quote from Public Liability Insurance and receive the necessary financial assistance. It's important to remember that each state and territory has their own set of rules and regulations for obtaining a license.

Needed for on-site work

Builders and project managers recognise the high level of risk associated with construction sites. Project managers hire tradies with public liability insurance to ensure the safety of their workers and to protect their organisation's reputation. As a tradie looking to expand, keep proof of your public liability insurance policy on hand. Real estate agents and property managers can request that tradies obtain insurance prior to the start of a project.

Protecting the business and ensuring peace of mind

Running a business as a tradie entails working toward business objectives, ensuring employee satisfaction, and managing day-to-day operations. All of this is enough to keep you engaged, and worrying about third-party claims can create a stressful situation that affects business productivity. Without the proper protection in place, the business finances are at risk, as are the personal assets of a tradesperson.

Coverage tradies need

Public and product liability insurance provides compensation for the following:

• Personal injury suffered by a third party including customer, supplier, or member of the public due to negligent business activities.
• Damage to property owned by a third party due to employees and their actions.
• Legal and defence costs associated with a covered claim.

Get the best insurance for tradies

As a tradesperson, you are now aware of the importance of public and product liability insurance in order to run your business as you have envisioned. One of the best ways is to consult a customer-friendly member of Public Liability Insurance for tradies who offers an online quote and multiple quotes without requiring complicated paperwork. They immediately mail coverage and policy documents to ensure that you receive the best policy for your company.

We help businesses with their public liability insurance needs. Check out our website