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There aren’t many tradies who like paying for Public Liability (PL) insurance, but deep down you know it’s the smart thing to do. It protects you financially if you hurt another person or damage their property on the job, by saving you from forking out shed-loads of money in legal costs and compensation.
If someone kicks up a stink, it’s your best defence. But just how much does it cost?
Well, it all comes down to a number of key factors, including:
Other factors that may play a part in determining the cost of your Public Liability policy are the location your business; what is included and excluded in your policy; and the insurance provider you choose.
However, the most accurate way to find out the cost for your business is to simply get an instant online quote.
We’ve conducted some research into the cost of Public Liability insurance for tradies by analysing data from BizCover policies sold during the 2016/17 financial year. Our sample includes more than 1500 policy holders in NSW across 20 different trade occupations, which have 10 or fewer employees.
These occupations include:
|We know, sometimes you just want a quick idea of how much your insurance is actually going to cost. However, it’s important to note that the data included within this article was sourced from BizCover customer data during 2016/2017 and is intended as a guide only. It may not reflect pricing for your particular business as individual underwriting criteria will apply. Get a hassle-free quote for your business here.|
On average, tradies can expect to pay around $50 to $75 per month for Public Liability insurance.
Here’s a full breakdown:
After looking at the nature of your trade, one important factor that insurers use to determine the cost of your Public Liability insurance is the number of employees your business has. The more employees you have, the riskier your insurer perceives you to be, hence you’ll likely pay a higher premium.
Looking at our data, 77% of tradesmen insured through BizCover are sole traders and are paying around $75 per month for their PL premium. However, once you start to have 3 to 4 employees the premium increases to around $92 per month.
Another way insurers price the cost of Public Liability insurance is by looking at the amount of revenue you turnover, as this is another indication that you operate a larger scale business, either working on a higher number of jobs, or jobs of higher value. And the more work you do, the more likelihood of an incident occurring.
A trade business turning over up to $100,000 can expect to pay around $80 or less per month for Public Liability insurance, however, increase turnover to $250,000 or more and the premium increases to >$108 per month.
It’s fair to say that the more of something you buy, the more it will generally cost. Fortunately, increasing the cost of your Public Liability insurance, however, won’t increase the premium by too much.
The most popular level of Public Liability cover taken out by BizCover tradesmen customers is $10 million, with an average monthly premium of $74. Yet, if you increase your cover to $20 million the premium only rises to around $82 per month on average.
Deciding what level of cover to take out can be influenced by a number of things like:
|Coverage level||Average monthly premium|
*Data based on NSW BizCover customers