As a tradie, you know things can go wrong even at the best of times. That’s what public liability insurance is for, right? Wrong. The truth is, public liability insurance does cover your mistakes, but it’s not black and white. 

With a whole range of risks to consider, like workplace injuries, equipment damage and liabilty claims, understanding your insurance policy can help protect your financial stability, workflow and business reputation. 

At Morgan Insurance, we equip you with the knowledge to navigate your insurance policy and claim with confidence.

So, how does public liability insurance really work? Let’s break it down.

Understand The Distinction:

Public liability insurance protects you from any unexpected injury or damage caused by your workmanship. For example, you drop a tool, and it damages your client’s property, or a spark from your welder catches fire. 

Faulty workmanship incurs replacement costs more than anything else. It is something that you did incorrectly, which, as a result, the client needs re-done or corrected.  This is considered a business risk, not an accident. Under the terms of your insurance policy, you are expected to perform your work to a high and professional standard. So, where this is not upheld, you are not covered.

It boils down to rectification vs consequential damage. Consequential damage is unforeseen and not a direct result of poor or faulty workmanship, so it is covered under your insurance policy.

How To Get Comprehensive Cover?

As a tradie, it’s hard to predict what will happen with your workmanship once the job is completed, and this is out of your hands. So, to ensure that you’re fully protected, here are the core elements you’ll need to be insured for: 

Products Liability Insurance:

This covers personal injury or property damage caused by a defect or side-effect of the work you have completed or the product you installed. 

Professional Indemnity Insurance:

This is particularly important for electricians, architects, designers and construction builders, where they can be protected from financial loss or impact caused by a mistake in their professional advice. 

Contract Works Insurance:

Construction site damage or damage to the work that is underway can be protected by contract works insurance. 

How To Claim: Step-by-Step

When the worst happens, and you need to make a claim, you’ll want to make sure you do everything right. With an insurance broker like Morgan Insurance by your side, you can ensure that everything is taken care of. But following these steps will ensure a smoother process: 

• Act: Take any photos as evidence.

• Claim: Contact your broker to submit your claim. They’ll ask for any necessary and supporting documentation that you can provide (i.e. photos, receipts, etc).
• Excess: Your insurance policy should detail what your excess is (i.e. how much you’re liable to pay upfront before your insurance covers the rest). Understanding this is important as it ensures there are no surprises when you’re filing a claim.

It’s normal to miss steps and overlook certain details. That’s why we recommend using a broker like us to help you navigate your claim process and ensure you get the outcome you deserve, every time. 

Morgan Insurance: Your Go-To Guide

At Morgan Insurance, we’re insurance experts. We’ll navigate and secure the best insurance policy for your business needs. There’s a lot that goes into protecting your workmanship; you don’t want to risk being underinsured. When you try to understand your insurance policy alone, it can leave you with coverage gaps that leave your professional work vulnerable.

Leave it with us. We’ll ensure that your work is protected, so you’re not left in the dark when things go wrong. We’ll help you get started. Contact our team today. 

FAQ’s

Why are Rectification Costs excluded?

Your insurance policy is intended to protect against accidents and unforeseen damages. The costs associated with poor-quality work are considered a business expense, as they include quality control, industry standards and warranties.

Does product liability cover faulty work?

Product liability insurance does cover faulty work, but only for the consequences that arise after the job is finished. It will cover the damage caused, but not the cost of replacing or fixing the faulty work or installation.