Is essential for every business, whether it is a huge multinational corporation or a sole trader working from home. In a nutshell, public liability insurance protects the company and its employees against any claims which might be made against them by members of the public. It covers such events as slips and trips by customers while on a business premises, and damage caused to a customer’s belongings or home by a tradesperson. It covers the company’s employees for any claims made against them and ensures that the company can stay afloat and not be crippled by legal and compensation payments in the event of a claim. In the UK, public liability insurance is not legally required by law, businesses are strongly recommended to take out cover to protect against very high legal bills in the event of a claim. The nature of the British legal system can mean that if a claim for a serious injury goes to court, bills for compensation can run into millions of pounds. Also, it is clear that the trend in the UK is more a more aggressive style of litigation and with an increasing number of lawyers being prepared to take on cases on a “no win no fee” basis, it is safe to say that the amount of cases against companies demanding compensation for injuries or damages will only rise in the coming years.
The current economic climate is tough for small businesses and sole traders, and many may be looking for places to cut costs. For the reasons outlined above, public liability insurance should not be somewhere that the business is looking to make cuts. It is always good practice to shop around and see if a better deal can be found by switching companies, but cancelling public liability insurance cover completely is never a wise step to take. When weighed up against the possible costs of compensation for an injured customer, the monthly premium for the insurance is tiny. Premiums for public liability policies are calculated depending on the type of business, turnover and number of employees. It goes without saying that a sole trader who only works part time will pay far less than a business with 15 employees, all of whom work in clients’ homes for the majority of the week. Insurance companies and brokers will also be able to adjust the level of cover required based on the type of business and the perceived risk. Many sorts of businesses would be wise to take out public liability insurance, and some of these are discussed below.
Builders
A good builders public liability insurance policy will cover small and large building firms in the event of their work not being up to scratch and causing damage to the customer’s property or the property of neighbours. It will also cover things such as customers injuring themselves on equipment or tools left on site when building work is taking place in their home, and builders damaging gardens, pipework, gardens or anything else on the property. Considering the types of tools and equipment used on a building site and the relatively high level of risk involved in building work, it is essential that all building firms are properly covered for all eventualities .
Plumbers
It is not difficult to appreciate how much damage plumbers could cause to a home should something go wrong with their work. Even something as simple as leaving a nut loose could mean flooding and a massive bill for damages. Poorly installed gas boilers could have even more disastrous consequences. Plumbers public liability insurance is therefore essential, whatever the size of plumbing firm and the types of work being carried out. A small annual premium will cover plumbers against bills for damages caused by their work which could run into many thousands of pounds. Insurance will also cover against smaller scale accidents such as a plumber dropping a tool and smashing a bath or sink while working in a customer’s home or office.
Electricians
A good electricians public liability insurance policy will cover both electrician firms and sole traders and protect them against any damage they cause to a customer’s home or belongings. This damage could be something as large as a fire caused by faulty wiring left uncorrected, or a damaged piece of furniture because an electrician has dropped a tool and scratched it. Customers are well within their rights to ask to see a public liability certificate before allowing electricians into their home to start any work.
Plasterers
The reasons why plasterers public liability insurance is so important is similar to the reasons why it is critical for the other building trades. The potential for damage and accident is relatively high, and the amount required to compensate customers who have suffered damages could be considerable. Insurance will also cover more minor incidents such as damage to carpet from spilled plaster, or smashed windows caused by a poorly positioned ladder. Plasterers insurance is also essential for companies and individual plasterers who work for corporate or business clients rather than members of the public in their own home.
Joiners
Joiners public liability insurance means peace of mind for both the company and their clients. Although a good joiner will of course make every effort to ensure that there are no accidents while working and that no damage is done, accidents are sometimes inevitable and a joiners insurance policy will mean that they are not out of pocket if a client decides to pursue a claim against them for compensation.
Roofers
The potentials for accidents and mishaps is high when working at height on a roof, and a dislodged tile or slate can do huge amounts of damage if it falls onto a car or other building by accident. For this reason, Roofers public liability insurance is essential. A good policy will also cover the roofer against any problems which occur at the property if work has not been completed to a high enough standard or if something has been missed.
Locksmiths
The majority of a locksmith’s business will take place on a customer’s property, whether that be an emergency call out in the middle of the night to let someone in after they have lost their keys, or a more routine appointment to fit additional security. Locksmiths public liability insurance will cover any accidents which happen, such as dropping tools and shattering a pane of glass or fitting a faulty lock which causes damage to the door or doorframe.
Market Traders
Most market traders public liability insurance covers both public liability and product liability. Public liability insurance will cover market traders for customers injuring themselves by, for example, tripping over stock left on the ground or an item falling from a stall onto them. Product liability is usually sold in conjunction with the public cover, and covers the market trader for damage or injury caused by the products which they are selling. These claims for damages can be enormous, and paying a monthly premium to protect the business is far more sensible than taking the risk.
Mobile Carpet Cleaners
Although it’s possible for homeowners to rent out carpet cleaning equipment and do the hard work themselves, many opt to have a professional come into their home and clean their carpets for them. In these cases, mobile carpet cleaners public liability insurance is a must. Carpets can be easily damaged by the cleaning machinery, especially if they are old or delicate. Customers and their families may be adversely affected by the steam and any chemicals which are being used to clean. There may also be other damage caused by employees and equipment. A comprehensive insurance policy is therefore essential.
Child Minders Insurance
Child minders make their living by looking after children in their own home. Child minders public liability insurance is of critical importance, and a current certificate is something many parents will ask to see before signing a contract with a new child minder. The policy should cover the child while it is in the child minder’s home and in the event of some sort of accident resulting in injury to the child, the policy will cover any claims for damages. Children can be very accident prone, and even the most attentive child minder will find that children can have accidents or injure themselves. Having a good level of child minders insurance also demonstrates to parents that the risks have been considered and steps have been taken to minimise risks.
Hairdressers
Most hairdressers work from a shop, but many also travel to see clients in their own homes. In either case, hairdressers public liability insurance is an important aspect of the business. Policies will cover the hairdresser for situations such as an unpredicted reaction to hair dye or other chemicals used in the salon as well as trips, slips and falls which can happen at any time and which can result in hefty claims for compensation and damages. If the hairdresser is going into clients’ homes, it will also cover against the hairdresser damaging the customer’s property by accident.
Dance Teachers
Whether it be a children’s ballet class or an adult zumba class, dance teachers public liability insurance is an essential item. Most dance teachers will do their best to avoid situations where students are injured, but occasionally accidents do happen and the policy will cover claims for compensation. Dance teachers insurance will also cover any injuries or accidents in the dance studio such as falls, or injuries caused by equipment used in the classes.
Mobile DJs
Mobile DJs make their living by entertaining us at events like parties and family celebrations. The last thing anyone wants to happen at their party is an accident, but the combination of high spirits and alcohol means this can be more common than might be thought. Mobile DJs public liability insurance will cover against claims for people tripping over cables for example, and also for situations such as lights which haven’t been properly secured falling onto the dance floor and causing injury. The policy will also cover the DJ for claims made by the owner of the function room for any damage which may be done to their property.
PC Repair Business
Nearly every home and small business has a PC these days, if not several. When these machines go wrong, consumers will either ask someone to come to their home or business and put it right, or take it to their local PC repair shop. In either case, PC repair business public liability insurance is required by the repair company. If the repairer comes into a home or office and damages a carpet, photocopier or computer equipment, the policy will cover the cost of replacing these items. It will also cover for situations such as a poor repair which causes damage to servers or a fire caused by a faulty item which has been certified as safe.
Musicians
Musicians who travel around performing at different venues can benefit considerably from having a comprehensive musicians public liability insurance policy. Although accidents and incidents involving members of the public can be rare, it is wise for musicians to insure themselves against claims for instruments injuring members of the audience, or accidents such as equipment malfunctioning and injuring spectators. The policy will also cover for damage to the venue which may include minor damage such as marking on floors or more major things like electrical problems.
Bouncy Castle Operators
A bouncy castle is the staple attraction at school fairs and birthday parties the year round. Parents and other organisations entering into contracts with providers of bouncy castles are becoming more concerned about safety and liability for claims, and many will now ask to see a bouncy castle public liability insurance certificate. Accidents on bouncy castles are rare when the children are properly supervised, but claims for injury compensation can be extremely high and injuries can be serious. For this reason, a good public liability policy will set out exactly what is covered and the maximum amount which can be claimed under the terms of the cover.