Unsure about whether you have to pay public liability insurance as a self-employed individual? Have no fear, you have come to the right place!
Public Liability Insurance is considered a must-have for many business owners. It covers personal injury, death and damage to property. It covers general damage that might occur in your workplace or when you are visiting clients for consultation purposes.
It is also an important insurance policy to adopt for the sake of taking on clients. Clients want to be assured that you do have public liability insurance so they will trust that you will be able to cover the costs of any claim incase damages arise.
Whether your are expected to adopt it if you are self-employed depends on a variety of factors.
Is it a legal requirement to have Public Liability Insurance?
While it isn’t a statutory requirement to take out public liability insurance on your small business, it is recommended amongst small business owners. However, some self-employed trades require mandatory self-insurance especially if you are working as a government employer.
The Industry Fact Sheets webpage on the Australian Government business website contains the codes of conduct to pertain to for every industry.
For more guidance, see below for jobs that recommend public liability insurance.
Recommended Jobs that need Public Liability Insurance
Most jobs will come with their inherent risks that you — the self-employer — will need to take into account. Below are some of these trades.
Sole Traders/ Tradies/ Wholesalers/ Contractors
If you are self-employed as a plumber, carpenter, contractor and/or you are making a business out of a niche skill you are selling, it is recommended to get public liability insurance in order to cover any significant damage claims that could possibly come your way.
Accountants/ Bookkeepers/ Tax Agents
For accountants/bookkeepers, it is recommended to obtain insurance in order to avoid unwanted liability on your balance sheet. This would also come in the form of professional indemnity insurance that will protect your business from losses arising from acts, errors and omissions from a wide variety of services. This will also cover serious auditing errors, tax advice/preparation and incorrect analysis and interpretation of numerical data.
Advertising and Marketing
If you are self-employed as a marketing freelancer , you are relied upon by your clients to provide solutions to market your clients business. If one of these solutions accidentally causes financial damage to your client, it is important to have an insurance policy ready to tackle it.
Gardeners
If you run a gardening or landscaping business, it’s likely that you have invested a significant amount of money into buying and maintaining tools. In the case that you cause unintended negligence on your part, or your business is thieved of tools and equipment, public liability insurance can ensure compensation for your damages. In addition, public liability insurance can cover any third-party property damages or injury that occurs to others in the course of your work.
Mortgage and Finance Brokers
When you have established regular contact with your clients, you will be exposed to an array of potential mishaps and accidents. Public Liability Insurance is the sure way to go in order to protect your interests and assets.
Real Estate Agents
he unpredictability of the housing can make you vulnerable to damage claims. Public Liability Insurance can help you find any compensation requirements or perhaps litigation fees involving economic loss.
Consultants
While working for yourself as a consultant can be a very rewarding career, it is important to protect yourself from a client seeking compensation for damage they received due to your advice. This can also be n the form of personal injury and property damage. Public Liability Insurance would protect your interests in this way, and is generally more important for consultants who have clients visiting them at their own office.
IT Firms
The definition of ‘property’ in legal terminology often acts as an umbrella term. For IT professionals, you may negligently cause damage to property via software, hardware, or falling liable for not providing ample security towards possible malware. It is thus critical to be covered with public liability insurance in this regard.
Health Care
Personal injury damage is a critical risk that encompasses every medical career. Ensuring that you have public liability insurance to cover these damages is important for the longevity of your practice.
Protect Yourself in the Best Way Possible
Taking the necessary steps to foresee the possible damage you may incur in the future (based on your profession) is a sure way to establish a successful career.
Public Liability insurance is not the only type of insurance to adopt. Professional indemnity is also useful, especially when your profession is burdened with a unique type of risk attached to it. Look into professional indemnity insurance if public liability insurance doesn’t cover your risks.
For more information, see what public liability insurance covers.
If you’re unsure, an insurance lawyer can help you confirm what protections you need particular to your work.
