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What Public Liability Insurance Do I Need to Be a Contractor?

When you’re working as a contractor, having the right insurance in place is essential to protect your business from potential risks. One of the most important types of insurance for contractors is public liability insurance.

Do Contractors Need Public Liability Insurance?

While public liability insurance is not a legal requirement for contractors in the UK, it is highly recommended. Many clients and main contractors will require you to have public liability insurance before they will work with you. This is because they want to ensure that they are protected in the event of an accident or damage caused by your work.

In addition, some contracts may specify a minimum level of public liability cover that you must hold. For example, many contracts require contractors to have at least £5 million of public liability cover. If you don’t have the required level of cover, you could be in breach of contract and lose out on valuable work.

What is Public Liability Insurance for Contractors?

Public liability insurance is a type of insurance that protects your business against claims made by third parties for property damage or personal injury caused by your business activities. For contractors, this could include accidents that occur on a job site, damage to a client’s property, or injury to a member of the public caused by your work.

Public liability insurance covers the cost of compensation or legal fees if a claim is made against your business. It can also cover the cost of replacing or repairing damaged property. Without public liability insurance, you could be liable for these costs out of your own pocket, which could be financially devastating for your business.

What Level of Public Liability Insurance Do Contractors Need?

The level of public liability insurance you need as a contractor will depend on a number of factors, including the type of work you undertake, the size of your business, and the terms of your contracts. However, as a general rule, most contractors should have at least £1 million of public liability cover.

For larger projects or higher-risk work, you may need a higher level of cover. For example, if you are working on a construction site or undertaking work that involves the use of heavy machinery, you may need £5 million or even £10 million of cover.

It’s important to assess the risks associated with your work and choose a level of cover that adequately protects your business. You should also review your cover regularly to ensure that it still meets your needs as your business grows and changes.

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What Does Public Liability Insurance Cover?

Public liability insurance typically covers:

  • Property damage: If you accidentally damage a client’s property or a third party’s property while carrying out your work, public liability insurance will cover the cost of repairing or replacing the damaged property.
  • Personal injury: If a member of the public or a client is injured as a result of your work, public liability insurance will cover the cost of compensation and legal fees.
  • Legal costs: If a claim is made against your business, public liability insurance will cover the cost of legal fees and representation.
  • Financial loss: Some public liability insurance policies may also cover financial loss suffered by a third party as a result of your work. For example, if your work causes a client to lose income, your insurance may cover this loss.

It’s important to note that public liability insurance does not cover claims made by employees. For this, you will need employers’ liability insurance, which is a legal requirement if you have any employees.

Other Types of Insurance for Contractors

In addition to public liability insurance, there are several other types of insurance that contractors should consider:

  • Professional indemnity insurance: If you provide professional advice or services, professional indemnity insurance will protect you against claims of negligence or errors in your work.
  • Employers’ liability insurance: If you have any employees, you are legally required to have employers’ liability insurance. This covers claims made by employees for injuries or illnesses suffered as a result of their work.
  • Tools and equipment insurance: This covers the cost of replacing or repairing your tools and equipment if they are lost, stolen, or damaged.
  • Personal accident insurance: This provides financial support if you are unable to work due to an injury or illness.
  • Contract works insurance: This covers the cost of repairing or redoing work that is damaged or destroyed before it is completed.

Choosing the Right Insurance for Your Business

Choosing the right insurance for your business can be a daunting task, but it’s essential to ensure that you have the cover you need. Here are some tips to help you choose the right insurance:

  • Assess your risks: Think carefully about the risks associated with your work and choose insurance that adequately covers those risks.
  • Read the policy wording: Make sure you understand exactly what is and isn’t covered by your insurance policy.
  • Choose a reputable insurer: Look for an insurer with a good reputation and a track record of paying claims promptly.
  • Review your cover regularly: As your business grows and changes, make sure you review your insurance cover to ensure it still meets your needs.

Get Covered with Tradesman Saver

At Tradesman Saver, we specialise in providing insurance for contractors and tradespeople. Our public liability insurance policies start from just £53.76 per year and provide cover of up to £5 million.

We understand the risks that contractors face and can provide a package of insurance that is tailored to your specific needs. In addition to public liability insurance, we offer a range of other types of cover, including employers’ liability insurance, tools and equipment insurance, and personal accident cover.

With Tradesman Saver, you can get a quote and buy your insurance online in just a few minutes. And with our 24/7 claims line, you can rest assured that we’ll be there when you need us most.

Protect Your Construction Business with Tradesman Saver

Public liability insurance is an essential type of cover for contractors. It protects your business against claims made by third parties for property damage or personal injury caused by your work. While the level of cover you need will depend on your specific circumstances, most contractors should have at least £1 million of public liability cover.

In addition to public liability insurance, there are several other types of insurance that contractors should consider, including professional indemnity insurance, employers’ liability insurance, and tools and equipment insurance.

At Tradesman Saver, we specialise in providing insurance for contractors and can provide a package of cover that is tailored to your specific needs. With our competitive prices and 24/7 claims line, you can rest assured that your business is in safe hands.

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