Why public liability insurance is vital in the construction sector

Public liability insurance is a type of insurance that covers you against personal injury or property damage to a third party. This type of insurance is not generally compulsory in Australia (except in specific trades, such as plumbing or electrical work), and so, you may be tempted to skimp on it and save the money. However, this is a very short-sighted view.


Firstly, without insurance, the cost to your business of an accident could be enormous — and could even lead to the company's failure. No matter how careful you are, and no matter how good your health and safety procedures, there is always a risk of something going wrong. If this causes injury or damage to a member of the public or another third party they are quite capable of suing you, and the damages could be substantial. Litigation is becoming more and more common nowadays, and if the complainant has a no-win-no-fee lawyer they will be able to take on even the largest companies. It is just common sense to make sure that your business will be able to carry on if something unthinkable happens.


You will also find that many potential clients will insist upon public liability insurance as part of the contract. Anyone who is hiring a construction company for a large job will be looking into several different companies and will carefully study the terms and conditions of the contracts offered. A company who has public liability insurance will offer a clear advantage over the others — many clients will not deal with a business without it. Trying to save money by going without insurance will simply put you at a competitive disadvantage. Your competitors will take your business, and you will lose out in the long run.

Peace of mind

Public liability insurance can also free you from a lot of worries. There are so many things that can go wrong in business, and the possibility of an accident can never be discounted. By taking out insurance against any injury or damage to a third party, you will have one less thing to worry about. You will know that should the worst come to the worst you will have the resources to make good your responsibilities and can concentrate on running your business.

Public liability insurance is vital to any construction business. Just get in touch with any insurer for a quote.