Does a Small Construction Company Really Need Public Liability Insurance?

5 December 2017
 Categories: Finance & Money, Blog


As the owner of small construction company, you may be wondering whether you really need to have public liability insurance. After all, Australia business owners aren't always required to maintain this type of cover by law -- and it might seem like the type of insurance better suited for large companies with hundreds of employees. Actually, public liability coverage is a wise choice for nearly any business owner, whether small or large. To understand why, you must first understand more about what this type of insurance is used for. Here's what you should know about public liability insurance -- and why it's important for you as a small construction business owner.

What is Public Liability Cover For?

Public liability cover is used for many different circumstances. In general, this type of cover is meant to protect your business in situations where your business is at fault for an injury, or for damage to someone else's property. Therefore, public liability coverage can apply to situations such as:

  • Negligence on job site: personal damage suffered by others if you or your employee fail to post adequate warnings on a job site (for example, a "caution" sign in a dangerous area.)
  • Property damage: property damage that you or your employees cause whilst performing a construction job. This could include situations like an employee dropping a tool and cracking a customer's floor tile, and could also include any damage at all -- even as minor as scratches on furniture caused by you or your employees whilst engaged in construction work.
  • Personal damage: personal injury suffered by visitors to your company property. This can include situations such as slipping and falling whilst anywhere on your property, but can include both minor and severe injuries.

Do You Really Need Public Liability Insurance?

As a small construction business owner, you may think that you can get along without public liability insurance -- especially if you only have a couple of employees. However, it's important to realize that even a home-based business with no employees needs public liability insurance cover. Imagine a situation in which your employee accidentally leaves a nail exposed on a job site, and it ends up causing serious personal damage to the homeowner.  A single claim of this type could cost your company many thousands of dollars -- or could even bankrupt you if you don't have public liability cover. 

Every small (and large) business need public liability cover, and construction companies are no exception. Put simply, public liability insurance can give you the protection you need. Contact your local construction insurance services provider today to learn more!