Learning More About Liability Insurance As A Self Employed Tradesmen

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.

Landlord Insurance – Everything You Need to Know

Many landlords are under the false impression that a home or residential insurance will cover issues arising from tenants. What they fail to realise is that they need specialist landlords insurance to cover a rental property.

General buildings and contents insurance does not adequately cover you for third party damages, which is precisely the risk you incur as a landlord. Having insurance diminishes your exposure to these risks, and protects you from a heavy financial burden should such an accident occur.

What Landlord Insurance Covers

There are a variety of risks that a landlord is exposed to by taking on tenants. Here are some examples of where insurance can protect your financial wherewithal.

  • Malicious Damage Caused by Tenants – The worst kind of property damage typically comes not from an accident, but intent to do harm. Generally speaking a landlords insurance plan will cover you for up to £25K against vandalism or malicious damaged caused by a tenant or their guests.
  • Tenant Default – In harsh economic times, a tenant may not be able to pay the rent on time. In other instances, a tenant may simply choose not to pay, or leave the property abruptly despite signing a long term lease. Landlords insurance will help attenuate the impact of such an occurrence.
  • Loss of Rent – If a fire or other accidental property damage results in a tenant being unable to occupy the space, you will lose a source of income that you may depend on. Some plans will even go as far as providing alternative housing for your tenants until the property is deemed habitable, with certain restrictions on length of stay. If the damage is less than £1000, generally the insurance company will pay for the cost of repair as opposed to providing cover or an alternative living space.
  • Landlord Liability – Some plans will offer cover for liability claims, where negligence on your part led to an injury or property damage for the tenant. The insurance would also cover you for legal expenses.
  • Accidental Damage and Acts of Terrorism – Any accidental damage or acts of terrorism involving a third party would be covered by landlords insurance.

Rules and Restrictions

Many policies will have set rules and restrictions regarding the benefits you will receive and whether you qualify for them. For instance, if your space becomes unoccupied due to one of the aforementioned circumstances, cover may be offered for 60 days before it is expected you find a new tenant. It is important to know the guidelines attached to your policy before you make your purchase

Additional Cover and Benefits

Landlords competing to find the best tenants will often provide a number of services free, such as satellite dishes, broadband, and Wi-Fi. Some insurance plans will include the cost of cover for these items standard so that you do not have to purchase additional insurance.

Others will provide discounts on cover for student lets, and will extend grace periods for cover when the building is a student residence. However, other insurers will charge higher rates for student lets, given the perceived risks involved with leasing to youth.

Risk Factors and Property Type

The cost of insurance generally depends on a wide variety of factors, from the tenant to the interior to the type of building. Most insurers will offer packages based on property type, whether it is a single flat, a commercial property, a shared house or a family home. The level of risk, for instance, for renting out a room in a family home is much lower than in a dormitory environment. Discussing the risks with your landlords insurance provider will help you better understand what you can do to lessen your exposure while at the same time lowering the cost of your premium.

Public Liability Cover Explained

Unfortunately, accidents and mistakes happen. Business owners in the UK who own business in which members of the public, be they customers or clients, visit the business premises would be wise to take out a public liability insurance policy. An accident, such as a customer slipping on a wet floor, and the subsequent legal proceedings can become a large financial burden to the business in question, and public liability insurance serves to help provide a measure of protection against the financial slings and arrows of such a lawsuit.

Public Liability Insurance – What Is It?

Public liability insurance is an insurance policy taken out by a business which covers that business in the case of a loss or injury suffered by a member of the general public as a result of the activities of the business. So, for example, if a customer slips, falls and injures himself outside of a store or if a roofing contractor doesn’t complete the job properly resulting in a leaky roof and the customer files a claim, the insurance policy would help cover the payment of legal expenses and compensation on the part of the business.

Public liability insurance is not only good for business owners, but also for the customers and clients that utilise said businesses. The chaotic nature of the universe means that even the most careful and professional of businesses can encounter unforeseen circumstances that can cause an error or allow an accident to happen. This allows the business to operate under the knowledge that even if the worst-case scenario happens, compensation will be available to help pay for replacement of their customers’ possessions, repair of their customers’ property and payment of their customers’ medical costs.

Public liability insurance may pay on many different incurred expenses if a business is found to be at fault during an accident, including:

What Does Public Liability Insurance Cover?

  • Loss of earnings for the customer or client.
  • Future loss of earnings for the customer or client.
  • Damages awarded to the claimant.
  • Medical care awarded to the claimant.
  • Legal costs incurred by the business in question.

Normally, public liability insurance policies are customised depending on the needs of the individual businesses. However, there are a few general items and circumstances that most such policies cover. In general, public liability insurance covers the legal liability of a business with regards to paying damages to members of the public in the case of injury or death or damage to property or possessions as a result of the business’s professional activities.

How Can a Customer Make Sure a Business Has Public Liability Insurance?

If hiring a company, such as a roofer or other contractor, a client or customer should make sure that the business in question has public liability insurance before doing so. Clients can, and should, ask to see a company’s insurance documentation and scheduling before hiring that company.

Businesses should bear in mind that some customers or clients may require this sort of proof of public liability insurance to be shown to them, and they should be able to produce this proof easily. This is especially true when dealing or working with local authorities.

What Are Some of the Types of Public Liability Insurance?

Many insurance companies provide different types of public liability insurance for various types of organisations or businesses. These can include:

How Much Does Public Liability Insurance Cost?

  • Tradesman Insurance
  • Shop Insurance
  • Landlord Insurance
  • Commercial Landlord Insurance
  • Office Insurance
  • Home Business Insurance
  • Guest House Insurance
  • Restaurant or Pub Insurance

There are many variables that determine how much public liability insurance cost. One of the biggest considerations is how much coverage the business wants or needs. A business that wants a £5,000,000 policy is going to, obviously, be more expensive than a £1,000,000 policy. Various options and extras to expand and provide more comprehensive coverage will, of course, increase the price of the policy.

Other variables that can affect liability insurance cost include the type of business being insured as well as additional liability insurance such as products liability and property owners liability insurance. Business owners seeking to purchase public liability insurance would do well to shop around various companies in order to find the best quote to meet their individual insurance needs. Fortunately, many insurance companies have an Internet presence, allowing business owners to shop around and get sample quotes quite easily.

While the policy is an additional business expense, it is definitely one that is important to have. Not only will it protect the business but can also offer protection and peace of mind to clients.