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Public liability insurance for contractors
If you contract to builders, councils or companies, public liability is the first thing they ask for and the first thing they check. Here is what contractors need, the $20 million question, how subcontracting changes the picture, and how to compare quotes online.
- What head contractors ask for and why
- Subcontractors and the care, custody and control gap
- No phone number needed to request quotes
Why contractors are asked for public liability
A head contractor’s own policy covers the head contractor. It doesn’t cover you, and if your work injures someone or damages property, the claim comes to you. That’s why contracts require you to hold your own public liability, usually $10 million or $20 million, and to produce a certificate of currency before you start. business.gov.au notes that contractors are generally responsible for their own insurance.
Public liability covers injury to people and damage to their property. It doesn’t cover your employees, your own tools or the work you’re contracted to deliver, which is why contractors also hold tools, vehicle and often contract works cover.
What a contract usually requires
| Clause | What it means for you |
|---|---|
| Limit of indemnity | Often $20 million on construction and government work, $10 million elsewhere |
| Certificate of currency | Proof of cover with the limit and dates, before you start and at each renewal |
| Principal’s indemnity | The head contractor or client noted on your policy for your work |
| Cross liability | Each insured party treated separately, so a claim between you and the principal is covered |
| Workers compensation | Proof you hold it for your employees, or a declaration that you have none |
Our contractor vs subcontractor guide explains how the chain works and who is responsible for what.
What’s usually covered, and what isn’t
Usually covered
- Injury to people at the site or nearby.
- Damage to property that isn’t in your care, such as the client’s building.
- Legal costs of defending a covered claim.
- Products you supply as part of the work.
Usually not covered
- Property in your care, custody or control, such as goods you’re installing, unless the policy extends to it.
- Faulty workmanship you have to redo.
- Your employees. That’s workers compensation.
- Professional advice. That’s professional indemnity.
How to compare contractor public liability
Contractor public liability questions
Do I need $20 million public liability as a contractor?
Check the contract. Construction and government work commonly require $20 million; many commercial contracts accept $10 million. Buying the higher limit usually costs less extra than people expect.
Does the head contractor’s insurance cover me?
No. It covers the head contractor. You need your own policy, and the contract usually says so.
What is a certificate of currency?
A one-page document from your insurer or broker showing your cover, limit and dates. Head contractors ask for it before you start.
Does public liability cover damage to the job I’m working on?
Usually not, because the work is in your care, custody or control. Contract works insurance covers the build itself.
Can contractors compare public liability online?
Yes, for most trades and services. High-hazard trades are arranged by a broker.
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