There are generally two kinds of individuals who seek to purchase public liability insurance. Those who want to safeguard their assets from the risk of a lawsuit, and those who are legally required to purchase some form of insurance to operate their business. Regardless of the reasoning, most tradesman will find themselves in the market for public liability insurance, and many will find the purchase is well worth the monthly premium.
Public liability insurance protects your business from a claim made by a third party due to personal injury or property damage. In each case, the damages can easily escalate into the millions of pounds, and therefore most businesses can ill afford to be without an insurance policy to provide a financial safety net.
Public Liability Insurance for Tradesman
While public liability insurance is widely available for a variety of different occupations, the trade industry in particular relies on public liability cover the most. As you can imagine, tradesman are exposed to a great deal more risk than your average blogger. From electricians working on a building’s wiring system to bricklayers piecing together the building itself, contracted workers and small business owners must deal with an enormous amount of financial risk with every job they take. If something were to go wrong and a tradesman was found to be negligent and responsible for damages, the aggregate costs could overwhelm and bankrupt your business.
Conversely, the cost of liability insurance can be as little as a pound a day, a relatively small price to pay for security and peace of mind. As a result of the multitude of risks and meagre annual costs, public liability insurance is the one type of cover a tradesman cannot do without.
Choosing Public Liability Insurance
Many tradesman will make the mistake of simply looking at price, making the assumption that all public liability products are the same. However, often times the cost will vary precisely because some policies are far less comprehensive. First, be sure the insurance company you choose a member of the Association of British Insurers (ABI). The ABI website offers a list of current members.
Second, it is critical to check the small print and find out how each policy differs. Some public liability offerings will include tax audit cover or bundle their insurance with other packages, such as employers liability insurance, which you may require depending on the nature of your business. However, the most important factor in choosing a policy is finding a cover that is applicable to your specific trade.
As a tradesman, you will have risks and needs that apply only to your situation. Choosing a general public liability cover may leave you exposed in some areas while being over-protected in others. It is best to choose an insurer that has experience dealing with tradesman and can adequately assess the level of risk your business provides, and will be familiar with the various laws and regulations so that you can maintain compliance should your trade require compulsory insurance.