Tradesman public liability insurance protects tradesmen and their businesses from any claims made by the public. This can either be a claim by a client that you’re working for, or by a general member of the public, for accidental injury or accidental damage to their property. The coverage provides financial assistance for any costs or compensation you may be required to pay.
Tradesman public liability insurance is applicable to any tradesman that works with the public or carries out work near public spaces, for example, in homes or on driveways.
This may include:
Available to both sole traders and limited companies, tradesman public liability insurance provides financial support to cover claims should a client or members of the public experience a personal injury, loss of property, or property damage as a result of your work, regardless of whether the cause was negligence, or simply an accident.
This type of cover protects against public claims only, making it different from employer’s liability insurance which covers claims for injury or loss made by employees.
Unlike employer’s liability insurance, tradesman public liability insurance is not a legal requirement. However, for anyone who works in a person’s home, garden, or in areas where there is public access, it’s recommended that appropriate coverage is in place.
According to the Association of British Insurers, £7.2 million is paid out for liability claims every day in the UK, helping businesses and sole traders to cover costs associated with:
Tradesmen work in high risk professions where there are multiple dangers and threats. For example, accidentally drilling through a pipe, or a falling ladder. Even spilling a cup of coffee on electrical equipment is considered reasonable cause for claims, so it’s important that tradesmen and their businesses are protected should the worst happen.
While tradesman public liability insurance is not required by law, it is often required by professional organisations, trade associations, and through individual contractual requirements. Government and local council projects especially will often require that any tradesman working on the project have a suitable level of public liability insurance in place. Failure to have coverage when required can result in breach of contract which can mean a loss of business for you.
Statistics show that the average cost of general public liability insurance in the UK is £118 per year. However, costs may often be higher for tradesman public liability insurance because of the added risks that come with working in such an industry.
There are a number of factors that will be taken into account when generating a quote for tradesman public liability insurance. These factors may include:
These factors can all significantly affect the cost of a tradesman public liability policy, so it’s always best to compare quotes from a number of insurers before making a decision.
What types of liability insurance are there?
There are three key forms of liability insurance that we can offer:
1. Public liability insurance
Public liability insurance for tradesmen is essential if you wish to have cover for third party injuries or property damage. It can cover legal expenses or compensation claims that your business may not otherwise be able to finance. It typically covers:
2. Employer’s liability insurance
Employer’s liability insurance is an essential insurance cover your business will legally require if you own an organisation that employs one or more individuals. This type of cover will protect you and your business should an employee become ill or injured as a result of the work they are doing for your business. If you are caught without cover for your employees then your business could be fined up to £2,500 per employee per day.
There are a number of exemptions for employer’s liability insurance, including:
3. Tools Cover
For those working in the construction industry, getting tool insurance is highly recommended. It allows you to have financial protection against either damage to your tools or theft. Different levels of cover are available to protect:
At BuildSafe, we see our role as an independent advisor, who reviews the merits of each policy to help you make well-informed comparisons. We also save you time in procuring quotes, analysing and comparing quotes, and negotiating the commercials.
The procurement of quotations is a time-consuming process. From form filling, providing documentation, chasing, reviewing and comparing terms, negotiating and finalising; we take the weight out of all of this for our clients allowing you to focus on actually developing your business.
No. Our business is built on retention and referrals. It is essential to state that the insurer will release the same terms to us, as they would to you directly. We are able to use our position within the market to gain leverage with providers. This means we can generally gain more favourable terms than the market price and often help our clients save as much as 30%. We are paid by the insurer for introducing the business to them and this cost is included in the price quoted.