Although data cabling is relatively safe, accidents can still happen. If you are working at height, for instance, there’s the risk of falling or dropping something onto someone or their property. There’s also the risk of your tools, materials and other property being stolen. You may incur additional costs or lose income if you’re unable to work through injury or illness.
You can’t stop these accidents, but you can stop them causing problems for your business by making sure that you have the right insurance to protect your business. But what is the right insurance for a data cabling contractor?
Compensation claims can be expensive to settle. By the time legal fees, lost wages and other expenses are factored in, a compensation claim for a serious injury can easily reach six figures. Most businesses would struggle when faced with that level of cost and some could even end up facing bankruptcy. Even a claim for a minor injury could cost over £1,000.
Liability insurance protects you against such compensation claims. It also provides you with a defence against such claims so you don’t have to worry about dealing with potentially complicated legal issues.
Employer’s liability insurance protects you against compensation claims made by employees who allege that they have been injured and you’re responsible for their injury. Employer’s liability insurance is required by law.
Public and products liability insurance is similar, but rather than protecting you against compensation claims made by employees, it protects you against compensation claims made by members of the public who allege that you are responsible for an injury they have sustained, or damage to their property, either due to something you have done or failed to do, or due to a defect in a product that you have sold or supplied.
Because public and products liability insurance usually only cover compensation claims arising from an injury or property damage, it’s important to make sure that your products and public liability insurance contains a financial loss extension. This means that you will be covered if a claim is made against you for a purely economic loss.
Your property could be accidentally damaged or stolen, so it’s important to insure it so that you’re not out of pocket in this eventuality. You should make sure that you insure it for its full value because if you’re underinsured you’ll have a problem if you need to make a claim.
As much of your work will be undertaken on site, you should make sure that you have contract works insurance. This covers your tools, equipment and materials when they are on site. It also covers any hired-in equipment that you’re responsible for and covers your work in progress.
Other types of insurance
There are a number of other types of insurance that you need to consider.
Motor insurance is a legal requirement if you use a vehicle anywhere that the public can access. You could face serious penalties if you are caught using an uninsured vehicle and your vehicle could be confiscated.
Personal accident and sickness insurance replaces your lost income if you’re unable to work because you have been injured or have fallen sick. It pays a weekly benefit while you are incapacitated or a lump sum if you’re permanently incapacitated.
Legal expenses insurance pays your legal costs if legal action is taken against you. It covers a range of legal action, including employment tribunals, customer disputes and tax/VAT inspections.