Most Healthy North Coast Limited (HNC) contractors require Professional Indemnity and Public Liability Insurance. Additionally, all NSW employers, by law, require Workers Compensation Insurance.*
Public Liability Insurance is designed for professionals who interact with customers (including Healthy North Coast) or members of the public. It protects against claims of personal injury or property damage that a third party suffers (or claims to have suffered) as a result of your business activities.
In real terms, this means that if someone is injured or their property is damaged while you’re providing a service, they may take legal action against you to recover their losses. Public liability insurance is designed to help protect your business by ensuring that if this happens, you don’t have to pay any legal or court costs. It covers incidents that occur in your workplace, as well as incidents at other locations.
Public Liability Insurance is recommended for any business that interacts in public places. In every line of work, there’s always the potential for something to go wrong – and accidents do happen.
Claims of personal injury or property damage can be incredibly expensive. Even if you’re not at fault, you may still incur considerable legal costs while defending yourself. Public liability insurance safeguards your business by providing cover against such claims, including legal defence costs. So you can confidently go about your work, knowing you’re protected if something goes wrong.
All HNC contractors are required to have, at all times, Public Liability Insurance for no less than $10 million for any one occurrence, and $20 million in the aggregate. HNC will request certificates of currency as proof of coverage before entering into a contract Agreement.
Professional Indemnity Insurance is an important type of cover for a business, however it is particularly relevant to those in professions which provide advice for a living. A professional can be anyone who “provides advice or services of a skilful character according to an established discipline”. A claim for compensation as a result of incorrect professional advice or services, whether your business is big or small, can set back your business severely.
To ‘indemnify’ means to cover the insured for the liability owed to the third party for the loss suffered. Professional Indemnity Insurance covers against claims for liabilities owed to a third party (typically a client of the insured) for the loss suffered by the third party arising out of the insured providing ‘professional services’.
Whatever industry you work in, as a professional in that industry, you hold the responsibility to provide quality advice or services. Therefore, if you provide advice or services to your client which are incorrect, you could potentially be liable to pay for losses occurring as a result of this.
Professional Indemnity Insurance is important as the legal costs associated with defending any claims can be significant. Professional Indemnity Insurance is important as it can protect you from bearing the full cost of these claims.
Most HNC contractors are required to have, at all times, Professional Indemnity Insurance for no less than $10 million for any one occurrence, and $20 million in the aggregate. HNC will request certificates of currency as proof of coverage before entering into a contract agreement.
Workers Compensation Insurance provides an employer coverage in the event one of their employees suffer a work related injury or illness.
The policy will insure your business against the cost of supporting your injured worker and may include:
- weekly compensation benefits
- medical and hospital expenses
- rehabilitation services
- certain personal items (eg; clothing or spectacles, if damaged in a work related accident)
- lump sum payment for death or permanent impairment.
Workers Compensation Insurance is compulsory for all employers in NSW, unless you are considered an ‘exempt employer’.
An exempt employer:
- pays $7,500 or less in annual wages and
- doesn’t employ an apprentice or trainee and
- is not a member of a group for premium purposes
Sole traders/proprietors, or members of a partnership are not considered as workers. Hence they cannot take out workers insurance to cover themselves for injuries.
All HNC contractors who are employers in NSW (and who are not exempt) are required to have, at all times, Workers Compensation Insurance. HNC may request certificates of currency as proof of coverage before entering into, or during the term of, a contract.
More information can be found at the icare website