As a tradie, are you at risk?
If you work as a tradie, it’s important to have Public Liability Insurance in place. This is also one of the most well-known types of insurance. But what about Product Liability Insurance and why would it apply when you’re not actually manufacturing any products? For a lot of tradies, this is also an essential form of cover and for this reason it’s good to find out more about the definition of Product Liability Insurance and what it does for you.
What’s the difference?
A lot of people can get confused about the difference between Product Liability Insurance and Public Liability Insurance. Public Liability Insurance will cover you for the cost damage to a third party caused as a result of your actions at work if you’re found liable. This includes injury to a person or damage to property. Public Liability Insurance will also cover the cost of legal bills if you need to hire a lawyer at the time of a claim.
The definition of Product Liability Insurance is insurance that will cover you if goods you install cause injury or damage. This applies if you sell, supply or install goods and includes tradies who carry out repairs or servicing. Product Liability Insurance will cover you if the product you’ve installed causes injury or damage even after your work has been completed – even if the work has been some time ago.
A lot of tradies think that any issues with the products they supply will be sorted out by the manufacturer given they’re the ones who provide the product. However, often you can find yourself involved in a claim regardless of this which is why Product Liability Insurance is important. Even if the manufacturer is ultimately found responsible, you could still be left with expensive legal bills.
Essential insurance cover for tradies
One of the main reasons you don’t hear as much about Product Liability Insurance is that it’s generally included in your Public Liability Insurance policy. This combined insurance is known as broad-form liability insurance but generally both are included under the heading of Public Liability Insurance. This means you usually don’t need to worry about taking out a separate policy which can make life a lot easier. Remember, don’t assume your Product Liability Insurance is included as this will differ between policies – always check with your insurance broker to make sure you’re covered.
Product Liability Insurance, much like Public Liability Insurance, is often an essential form of cover for tradies. Don’t leave yourself open to a claim – if you’re found liable for damages, you could find yourself struggling to pay as costs can include medical bills, rehabilitation costs, repairs and replacement, and any other associates expenses. Your policy will also generally cover legal bills if you need to hire a lawyer for any legal proceedings.