Self-employed individuals frequently have difficulties in finding the right kind of insurance product to cover their needs and match their professional status. We are going to discuss here the concern related to the work they do and the accidents it may trigger.
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Tradesmen subject themselves to a whole series of risks, which calls for specifically tailored types of insurance. See below what the public liability refers to. For a small business that involves trade services, it is truly essential.
Sometimes you will have to choose your policy according to your membership or to your trade association. It is in fact very wise to do so. But before anything else, let’s see what it really means and why you need it.
What Exactly Does Public Liability Refer To?
As a business owner, you will have peace of mind once you know you are protected against expenses that can ruin you.
The policy will reduce the risks of losing income and having to pay out hefty amounts of money in the case of unfortunate events at work. There are many kinds of work that can endanger others and their property.
You must consider getting insured when working for third parties. If your activity harms your clients or members of the public, or their goods, then they will hold you responsible for the damage.
You are actually responsible for your actions at all times and therefore at risk of financial loss, should anyone hold a claim against you.
Which Tradesmen Should Get Insured?
Not everyone faces the same risks at work. Should negative events occur, not all tradesmen will be as responsible and pay out as much (if it is their fault indeed)?
For these reasons, some tradesmen are in a riskier position than others and are advised to take out a policy to protect themselves as self-employed workers.
Here are the categories that benefit the most of the public liability insurance for self-employed tradesmen:
- plumbers,
- carpenters,
- electricians,
- tilers,
- painters,
- gardeners,
- builders,
- cleaners.
Does The Law Require It?
In general, the liability insurance is not obligatory – it is, however, helpful to many.
However, tradesmen across various professions are required by the law to get covered. They represent the exception, which means that in their case it is compulsory.
The good news is that it can be highly customisable. You are advised to get a flexible business insurance – so you can tailor the price but also benefit from the best level of cover.
That will be dictated by the environment you work in and its usual risks and hazards.
How Risky Is Your Industry?
As a tradesman working for yourself, your income depends on your condition. Therefore, if you are ill, injured or in any other way incapable to work, your earnings cease.
You only make money as long as you are active. Besides that, the industry you’re in might also have its say: it could pose a threat to your health or integrity.
The work environment may simply be out of your control and thus you never know what to expect of it. It takes a good assessment of the risks involved in order to figure out the appropriate level of cover.
The public liability insurance can protect you whether you are self-employed or working as a sub-contractor.
Remember that as a tradesman you must choose a policy that meets your specific needs. As you do so, aim for flexibility, so that you can modify the cover according to your changing needs.
