All businesses face risks. There is the risk that their equipment and materials could be damaged or stolen. There is the risk that they could face a compensation claim if they have injured someone or damaged their property.
However, because private and home tutors come into contact with members of the public more frequently than many other businesses, there’s a greater risk of a member of the public claiming compensation if they have been injured or have had their property damaged. Public liability insurance covers you against such compensation claims.
There is also the risk that one of your clients could claim that the service you provided was inadequate and that they have incurred additional costs as a result. Professional indemnity insurance covers you against this type of claim.
No matter how experienced you are and no matter how careful you are, the unexpected can and will happen. Protection from the costs of these unexpected losses is why tutors need insurance.
Public liability insurance
Anyone who comes into contact with a member of the public runs the risk that a compensation claim will be made against them because they’ve injured that member of the public or damaged their property. But because private and home tutors come into contact with members of the public on a more regular basis than many other people, the risk of them having to deal with a compensation claim is greater.
Some compensation claims can be reasonably cheap to settle. If you spill a cup of coffee onto the carpet or the furniture in someone’s home, for instance, the cost of cleaning the item or replacing it will be fairly low. But if you injure someone it could be a different matter. Compensation claims for serious injuries can end up costing more than £250,000.
Public liability insurance covers any compensation that is awarded to the claimant. Your public liability insurer will handle the compensation claim on your behalf so you don’t have to worry about dealing with what are often complex legal arguments. And your tutor’s public liability insurance will pay the legal costs.
Professional indemnity insurance
Professional indemnity insurance protects you if someone alleges they have incurred costs due to your professional negligence.
As an example, they could allege that your teaching was not good enough, or that you had taught the wrong syllabus and, as a result, they had failed their exam. They might claim against you for the cost of the exam fee and the additional tuition that they would require to get them through that exam.
Professional indemnity insurance covers such claims as well as any associated legal costs.
Other types of insurance
As a tutor, it’s likely that you will have office equipment and this can be insured against accidental damage or loss due to theft, so that if that happens your equipment can be repaired or replaced to get you back up and running quickly. Your other business property can also be insured against loss or damage.
Personal accident and sickness insurance is also available. This replaces any income that you lose because you are unable to work due to an injury or an illness. It pays a weekly benefit while you are recovering. If you’re permanently incapacitated, it pays a lump sum.