What is Public Liability Insurance for Tradesmen and why is it so important?

Public liability cover relates to claims from third parties for personal injury and damage to property.
All businesses are at risk from such claims, whether you deal directly with members of the public or not.

Here are some examples of claims:

    * A customer who trips and falls on your freshly washed floor. She breaks her ankle and cannot go to work for several weeks. You face a claim for personal injury;
    * Your run a decorating business. One of your employees forgets to use a dust sheet and knocks a pot of paint of the customer’s managing director’s computer. It is ruined, so he makes a claim for damage to property.

Premiums for public liability cover are usually based on the turnover or number of people within the business as well as the risk profile of the business in question. So a small business that is just starting out will probably start at the bottom of the premium scale, depending on how risky its day to day activities are. For example, a fireworks factory would be more risky than a cafe; and if you compared two cafes, the one with the better risk management procedures (e.g. hygiene, fire, customer care) might be cheaper to insure.

Specialist insurance intermediaries like ourselves have experience in dealing with a wide range of customers with a variety of risk profiles. We can find cover for hard-to-place risks, so do not worry if your business is unusual.

Public liability insurance should not be confused with employers’ liability insurance. Employers’ cover is something that is usually compulsory for your organisation. Public liability cover is not compulsory for most businesses, but you may decide that you don’t want to risk not having it.

Why is public liability cover so important?

    * A large claim presents a significant risk to your business. Claims for personal injury can run to tens (occasionally hundreds) of thousands of pounds, and without insurance, you could lose your livelihood;
    * Depending on the kind of work you do, you may find that public liability cover is a commercial necessity. If you are trying to win work from large companies and public bodies, having adequate cover in place is often a prerequisite to getting the contract;
    * Having adequate public liability insurance gives you peace of mind, so you can get on with running your business.

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