No matter what trade or field you specialise in, sometimes a minor mistake or oversight can have significant financial consequences. There are many insurances you may need to consider as a tradie or handyman, but one of the most important covers to hold is Public & Product Liability Insurance (PPL). While you may already hold this cover (since it’s mandatory for some businesses) taking the time to understand what Public & Product Liability Insurance covers, and how it works to safeguard your business’s livelihood is worthwhile to help ensure your business is adequately protected. Let’s take a closer look at Public & Product Liability Insurance, what it covers and examples of claims that you might face.

Public Liability Insurance is designed to provide cover for your business if a client or member of the public alleges you or your business are legally liable for an injury, or damage to their property. It may cover the legal costs you incur in defending your business, as well as settlement costs if you are found legally liable. While you may already be familiar with Public Liability Insurance, Product Liability Insurance is one you may be less familiar with. Product Liability Insurance is intended to cover your business if a client or third party alleges products sold or supplied by you led to them suffering an injury or having their property damaged, or their property was damaged in the course of your business activity/service. Your business product, in this case, is typically defined as something which you would hand over to a client or third party, and is no longer in your control once handed over. It can be something your business sells, as well as items you supply incidentally. Product Liability Insurance is typically offered as part of a Public Liability policy, and is also an important cover to hold for tradies and handymen.

While PPL is typically associated with businesses that have a physical premise such as an office or store, it is also relevant for businesses that don’t have a physical storefront, but still interact with members of the public and/or clients. Given the nature of the work you perform as a tradesperson or handyman, every interaction you have with a client can carry with it a risk of injury or liability. A simple mishap as you’re using your tools can lead to you accidentally damaging your client’s home or injuring them, so PPL can be a valuable policy in providing you with the financial protection you need if you were to have legal action taken against you due to such incidents.

There are many incidents that can lead to a Liability claim against tradies & handymen. While the likelihood of property damage claims may be slightly higher, injury claims can also occur. Here are some of the ways liability claims can come about:

• You accidentally break a window or knock a hole in a wall while working at client’s home.

• You leave a tool or other item in the way, and a member of the household trips over it and suffers an injury from the fall.

• You drop something and damage flooring at a client’s house.

When taking out a PPL policy, in addition to carefully reviewing the details of the policy to get a clear understanding of what is and isn’t covered, it’s equally important to pay close attention to the information you provide to the insurer or broker to ensure accuracy. Here are a few areas to be pay close attention to when applying for or renewing a PPL policy:

Specifying Your Business Description

When you take out a policy for your business, you’ll usually be asked to provide a description or nominate the trade you carry out. Ensure you list all the services your business provides in order to be covered adequately. If you hire a subcontractor to perform work that you are not licensed to do, be sure to list these as well. While your subcontractor may have their own insurance, its important this work is also covered under your own policy as there are instances where your business may be held liable for work performed by your contractors.

Insured Name on Your Policy

One of the most basic details to list on your insurance policy can also be one of the easiest to get wrong. The insured name on your policy should be the registered entity for your business. If you have an ABN, your insured name should link back to the ABN – registered entity that you provide your business services through. Check if all entities are shown, if the spelling is correct, and whether the details are shown in full. If you don’t check this kind of detail, you may find that you haven’t been insuring the correct company and this could mean you don’t have a policy to claim against if a claim was to occur.

The Importance of Keeping Your Insurance Updated

After taking out an insurance policy, it’s not enough to file it away and just pay your renewal year after year. Your insurance cover needs to be updated as your business goes through changes, so it’s important to ensure you regularly review all your insurance documents to identify whether your policy needs updating. Also ensure contact details such as your address, email and phone number are up-to-date.

If you run a trade business and are looking for Public Liability Insurance, contact a member of the team at Aon on 1800 020 339.