Do contractors require public liability insurance?

Do contractors require public liability insurance?

Why would a contractor need public liability insurance? Unlike Employers’ liability insurance which is mandatory (if you have employees), there’s no legal obligation to take out PL insurance.

Why is it important for contractors to suitable public liability insurance?

Public liability insurance protects your livelihood if customers, suppliers, or members of the public are injured or suffer property damage due to your business activities.

What does public liability insurance cover in construction?

Construction Works, Public & Product Liability Insurance (also known as Contract Works) is taken out by builders, tradies or subcontractors to cover their responsibilities to insure against loss or damage to their build project. As well as legal and contractual obligations in relation to the contracted works.

Do you need public liability insurance if you are self employed?

Self-employed public liability insurance is not legally required for most business, but is considered necessary if people visit your business premises. Your business premises – If members of the public and customers visit your office there is a higher risk of harm or damage to property, which could lead to a claim.

Does my general liability policy cover independent contractors?

What Does Your Insurance Policy Say? General liability insurance generally does not protect independent contractors or subcontractors. This means your insurance likely does not cover independent contractor mistakes or protect your customers from them. It also likely does not cover accidents or other damage they cause.

Why does a contractor need public liability insurance?

Why would a contractor need public liability insurance? Unlike Employers’ liability insurance which is mandatory (if you have employees), there’s no legal obligation to take out PL insurance. However, there are several compelling reasons why you should do so:

Do you have to have public liability insurance?

In some cases insurance will be optional, but depending on your occupation you may find that it is mandatory. For example many construction sites around Australia require that contractors and subcontractors have their own public liability insurance.

Who is responsible for maintenance of public liability insurance?

The contractor will carry the responsibility for and, therefore, control over maintenance of its public liability insurance rather than the employer. If the contractor fails to properly maintain that insurance, then the employer will have to look to the contractor itself to cover any shortfall in insurance recovery.

What kind of insurance do you need to be a contractor?

For most contractors the most important form of cover will be public liability insurance, which will protect you in the event that you cause property damage or personal injury to another person. In some cases insurance will be optional, but depending on your occupation you may find that it is mandatory.

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