Things you need to know about tradesman public liability insurance |
Posted: September 19, 2017 |
You can make your own schedule and enjoy the satisfaction that you are working for yourself, fulfilling your own dreams, not anyone else’s. You can guarantee your family’s financial security and even start building a family empire. However, in order to enjoy all these perks, you have to think about duties and responsibilities. Running your own company means taking care of financial and administrative tasks that as a regular employee you don’t normally deal with. One of them includes Tradesman Insurance. Created especially for those who run their own trade businesses, such as building contractors, electricians or electricians, tradesman insurance provides protection against financial loss. It’s not compulsory, which is why many professionals do not know about it, but it is still a great investment to make. Here are a few useful facts you should know about it and some key tips to make sure you choose the right plan. Tradesman Public Liability Insurance – a short introductionLet’s start by answering the basic question “What is tradesman public liability insurance?” It is an insurance type that covers for the damage that you, or one of your workers causes on a client’s property. Accidents can always happen and normally, if you do not have this insurance, you would have to pay for the damage yourself. With insurance, you no longer have to pay from your own money. Whether the client’s property was damaged or the client himself was hurt while you were working, public liability insurance covers for it.
Who should invest in public liability insurance?This type of insurance is useful for contractors in many industries. Whether you work as an electrician, plumber, home remodelling expert, alone or with a team of workers, you should consider getting insurance. As long as you carry out your activity on the client’s property and there is a certain risk of accidents, insurance is a good thing to have. Is public liability insurance compulsory?Currently, businesses are not legally required to have public liability insurance, so you do not risk any fines if you don’t get it. However, you risk other things. As accidents can happen at any time, resulting in serious injury or heavy material losses, it would be wise to have a safety net so that you don’t pay for these losses from your pocket. Besides, many clients filter contractor offers based on whether or not they have insurance. From this point of view, having insurance is a sign of professionalism and reliability. It has become more and more common for people to decline contractors who don’t have insurance, so keep in mind that postponing this investment could affect your reputation in the long run. Types of damage covered by public liability insuranceBroadly speaking, tradesman public liability covers damages arising from your business activity. If the client’s property was damaged or a third party was injured while you were working, the insurance will pay for those damages. Also, if the case ends up getting to court, your plan will also cover the legal fees, which can be quite expensive. Here are a few examples:
Damage that public liability insurance does not coverAs useful as tradesman public liability insurance might be, keep in mind that it only covers a certain type of damage. In certain situations, it will not help you. For example, if one of your employees was hurt on the job because of your negligence, public liability insurance will not cover for you. In this particular situation, you will need employer’s liability insurance. Also, if you make errors and omissions or infringe intellectual property, you will need another type of coverage – public liability insurance. If you are not sure about the risks associated with your business and need extra clarifications, ask the insurance company and they will tell you more. Tradesman Saver is one of the leading insurance providers of this kind in the UK, but if you are looking for a similar service in the USA, you can get in touch with Geico, or Allianz, if you work in Australia. Public liability insurance costNot all businesses have to pay the same amount for tradesman public liability insurance. In fact, pricing options vary a lot, depending on several factors:
To get a general idea of how much insurance would cost you, you can use an online calculator. The result may not be exact, but at least you will know what to expect. No matter the quote, you should not be intimidated by the cost, if the offer comes from a reputable insurance company. Be wary of suspiciously cheap insurance offers from companies you haven’t heard of, because they could be a scam and they will disappear when you need them most. Last, but not least, remember that paying for public liability insurance really is worth it. Accidents can happen to the most cautious of people and a professional should always have a safety net to prevent financial losses.
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