If you’re hiring subcontractors, you might wonder whether Public Liability Insurance is necessary. 

After all, subcontractors often carry their own coverage, so why should you bother? 

Truth is, Public Liability Insurance is still a must for you, even when subcontractors are part of your crew.

It protects you from claims related to property damage, injuries, or accidents caused by your business activities.

Let’s learn why you still need it and how it applies when subcontractors are in the picture.

1. You’re Still Responsible for Your Subcontractor’s Actions

Public Liability Insurance covers claims for injuries or damage to others or their property caused by your business activities, including work done by subcontractors. 

In fact, if a subcontractor damages a client’s property, you could still face the claim as the primary contractor.

Imagine:

A subcontractor you’re working with installed a wiring that later sparks and damages a client’s office. 

Without Public Liability Insurance, you have to pay the bill for repairs and legal costs out of your own wallet. 

This could dry up your savings, halt your operations, and potentially lead to temporary closure. 

That’s why getting Public Liability Insurance is considered a practical step for any business, whether you’re a small tradie or a growing construction firm.

2. Clients and Contracts Often Require It

In some states and territories, Public Liability Insurance is often needed for specific industries, such as construction, property development, or events.

It’s often a non-negotiable part of contracts and clients won’t work with you unless you have it.

Why? 

Because having a policy in place meets client requirements and boosts your credibility, showing you’re prepared for risks and making you a safer bet for big jobs.

Additionally, while subcontractors have their own insurance, you can’t always rely on their policies to cover every situation. 

Some of their policies might have gaps, low limits, or exclusions that leave you exposed.

It’s best to have comprehensive coverage in case something goes wrong on their project.

3. It Covers a Wide Range of Risks in Your Daily Operations

Public Liability Insurance isn’t just for major accidents. 

It covers a variety of incidents that can happen when you or your subcontractors are on the job. 

Whether you’re a builder, cleaner, or event planner, this insurance applies to most businesses working with subcontractors.

It can cover: 
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• Property Damage: If a subcontractor accidentally breaks a client’s property.
  
  
• Personal Injury:  If someone else gets injured due to your work.
  
  
• Legal Costs: If a claim is made against you.
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For small business owners or those new to hiring subcontractors, these costs can be a shock.

What Public Liability Insurance does is to help you manage these risks without draining your savings or stressing about the what ifs. 

4. It Covers On-Site Accidents

Work sites are risky, and accidents involving subcontractors can happen anytime.

According to Safe Work Australia, 80% of serious claims are caused by falls, slips, trips, being hit by moving objects, and physical and mental stress.

This is where Public Liability Insurance steps in. 

Say, if a subcontractor leaves gear lying around and someone gets hurt, it can cover medical costs and compensation claims. 

This keeps your business running smoothly.

Don’t Skip This Essential Coverage, Get Covered Today

Whether you’re a solo tradie or a business owner managing a team of subcontractors, Public Liability insurance is important. 

It protects you from financial losses, helps meet client expectations, and covers a wide range of risks that come with running a business. 

If you’re unsure where to start, you can reach out to us at Tank Insurance. 

Our team of experts can help you find the right fit, so you can get covered and keep your business moving forward.