If you are a tradie and are serious about your work, you almost certainly have public liability insurance in place. You know that you need to protect others when they come into contact with you during everyday operations, just in case. So if somebody enters your workshop, slips, and falls, you will be responsible for any damages but can make a claim to your insurance instead. Yet, are you completely covered with this type of insurance, or might you face other risks that are also related to your work? In this situation, should you consider taking out professional indemnity coverage as well?

Providing Advice

The important point to remember here is that, as a tradie, you may be called upon to give your advice. This situation could arise in several different situations, where a client asks you how to take a certain course of action or whether they should address a particular issue. If these subjects fall within your industry and range of expertise, you may advise accordingly or even hold back your input. In either case, what you say could have implications if your advice turns out to be incorrect or insufficient.

Understanding the Consequences

Remember that your words have consequences if you're being paid for your advice. And this can be a problem whether you are a plumber, carpenter, electrician or another tradie who runs their own business. You may be facing a claim from a client based on what you advised them to do if the consequences led to a loss of some kind.

Professional indemnity insurance coverage could come to your assistance in a situation like this. You would be able to make a claim by providing relevant information to your carrier and getting them to defend the case for you.

Predicting the Future

It is difficult to put a value on this type of coverage as circumstances can be wildly different. But if you were to advise a course of action and the client spent a great deal of time and effort based on this advice, you can imagine how things could spiral out of control. What if the client built a structure in this scenario and it did not comply with standards or regulations, contrary to what you had advised? In this situation, professional indemnity coverage could save you from a huge potential settlement at some stage in the future.

Taking Action

Discuss your situation with your insurance broker to see what they recommend. They'll be able to quote you for coverage and put it in place as needed. 

Contact a local agent for more information about business insurance. 

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