How much does public liability cost for chippies?
Posted on August 20th, 2015
The cost of public liability for a carpenter can vary hugely.
If you’re a subcontract turning over less than $100k a year, you’ll pay just over $400 for your cover.
If you’re a larger carpentry business, then you’ll pay more…
Let’s take a look at some of the factors affecting your insurance cost.
What affects the cost?
There are three big factors which will affect the cost of any public liability policy:
- Business activities
- Business size
- Level of cover
We’ll now look at each point in a little more detail.
This will be pretty standard for most carpenters, but there are certain types of work that may change the premium.
A good example is formwork. If you’re undertaking a relatively minor amount of basic formwork, you’re generally not going to have any issues.
But if formwork makes up a large percentage of your work, or if the work involves large scale work, then your premium will likely be affected.
By letting us know more about your carpentry work we can ensure you have the right policy at the appropriate cost.
The size of your business will have a major impact on how much your public liability insurance costs.
If you turnover is less anything less than $100k and you don’t employ any staff, you’ll be paying the minimum premium, which is generally a bit over $400 for $5 million cover.
As the size of your turnover increases, or your number of staff increases, so will your premium.
Many changes won’t bring a huge increase though. For example doubling your turnover from $100k to $200k will increase the annual premium by less than $100 in most cases.
The use of subcontractors can also have an impact in this area. If a large percentage of your turnover is paid to subcontractors or labour hire, your premium may be affected.
Level of cover
As we’re only talking public liability, the level of cover really only relates to the dollar limit.
The main levels of insurance available are $5 million, $10 million and $20 million. Some insurers also offer a $15 million policy, but this isn’t too common.
Most carpenters will take out $5m or $10m cover, unless they have contracts in place which specifically state that a higher limit is required.
Whilst the level of cover does affect the premium, it doesn’t make an enormous difference.
For example doubling the cover from $5m to $10m certainly won’t double the cost of the insurance.
Getting a quote
For a typical carpenter the public liability insurance cost is going to be somewhere between $400 and $1,000.
If you’re running a large operation with plenty of staff and high turnover you’ll pay more, but it’s not going to be a huge amount more.
The best way to know exactly what your cost is going to be is to request a quote.
Via our carpenter insurance website you can request quotes for most small to medium sized carpentry operations, and for larger business we can help you out over the phone.
Follow the link for an online carpentry insurance quote, or call us on 1800 808 800.