Is Public Liability Insurance a legal requirement?


Whether you run a construction company, work as a contractor or are a self-employed builder, it’s always a good idea to have public liability insurance in place. Working on hazardous, using potentially dangerous equipment and tools and coming into contact with all kinds of materials, it’s not hard to see where risks can rear their head.

However, while having public liability cover is highly advisable, there is no legal requirement to have it in place. Anyone can operate in the construction industry without it, but that said, you’re at a distinct advantage.

Not only will you be covered if someone brings a claim against for injury, illness or damage to your property, but you’ll project a more professional image to potential clients. The fact that you have adequate insurance in place could be the difference between getting a job or not as it shows you aren’t prepared to leave anything to chance.

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However, the direct financial implications a claim could have for your operation is another compelling reason to have public liability insurance in place. If one of your clients or even a member of the public suffers an injury or illness as a result of your work, you could be forced to shell out tens of thousands of pounds in compensation. Likewise, if someone’s property is damaged, you could be faced with the bill for repairing or replacing it. That kind of unexpected financial outlay can be devastating for any company.

What insurance do I have to legally have?

Although public liability insurance is not a legal requirement, you’re obliged to have employer’s liability insurance if you have anyone working for you.

It doesn’t matter if you have a staff of one or one hundred and if they work part-time or full-time, the law requires you to have employer’s liability insurance in place.

This allows anyone working for you to seek compensation from you or your company if they are injured, fall ill or have their property damaged as a result of their work duties. Employer’s liability insurance will help you contest any claims and pay out any compensation which is awarded to your employee.

Due to the fact it is employer’s liability is a legal requirement, you won’t only be forced to foot the bill for a costly claim if you don’t have it in place. Daily fines for failure to take out employer’s liability can run into thousands of pounds. Additionally, you’re legally required to display your certificate of employer’s liability insurance in your workplace or risk further fines.

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*This indicative price is for £1m public and products liability, £250,000 legal expenses, £10,000 financial loss and £10,000 accidental death insurance cover for a sole trader. The price includes insurance premium tax and our admin charge. 22% of new customers paid less than £59 between 1st January 2019 and 31st August 2019. The actual price you pay will depend upon your specific business requirements and will be affected by your trade, your claims history and the optional covers you select which are all priced separately during the quote process. This website is intended for customers based in the UK and is therefore subject to the UK regulatory regime(s) © Copyright 2021 Tradesman Saver | Tradesman Saver and Henry Seymour & Co. are trading names of Barkdene Limited which is authorised and regulated by the Financial Conduct Authority (FRN 303965) for our insurance distribution and credit broking activities. Barkdene Limited is a credit broker not a lender. You can check this on the Financial Services register
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