Whether you’re a sole trader, limited company, partnership or a limited liability partnership, most plumbing and heating businesses need some form of public liability insurance.
But what is public liability insurance? How do you know if you have the right level of cover? And what should you look for from your policy?
Read on for answers to basic questions.
What is public liability insurance?
Public liability insurance is designed to pay the legal costs and any compensation payments in the event of accidental injury or property damage caused by you or your employees.
It covers you whether you’re working in people’s homes, in business premises or on construction sites. It is particularly important for those in the construction and trade industries because there are so many instances for property damage and personal injury to occur.
The cost of not having this protection can be significant if legal action is taken against you.
How do I know how much cover I need?
First of all, there are business-specific considerations that affect the amount of cover you need. These are:
(1) The nature of your business
(2) Where you operate
(3) How many employees and trainees you have, as they all affect the likelihood of things going wrong
Secondly, some contracts require you to have public liability insurance, and will stipulate a minimum level. Certain employers, such as local and central government, also have minimum levels of cover that they require of contractors and sub-contractors. And if you’re a member of any trade associations or bodies you may be required to have public liability insurance at a certain level.
You should check any relevant paperwork to be sure that you have the minimum required.
How do I know if I need extensions?
One of the ways you can get maximum protection from your cover is to extend it with optional extras such as tools insurance, stock insurance, own plant insurance, hired-in plant insurance, contract works insurance, personal accident insurance and jury service insurance.
For example, personal tools extensions cover loss of, or damage to, handheld tools. Hired-in plant extensions cover the loss of, or damage to, hired equipment ranging from scaffolding and temporary buildings to the contents of your site office. If you have hired-in plant, and under your hiring agreement you are liable to pay for damages sustained to the equipment, this extension covers those costs
Some extensions are available free of charge. For instance, CORGI’s public liability policy automatically includes £1,000 free tools cover, £50,000 professional indemnity and £100,000 financial loss. The level of coverage, the charge and the excess for extensions will vary from provider to provider.
Can I do a price and coverage comparison?
Definitely. There is a range of public liability insurance products available. However, don’t go on price alone. If you’re underinsured, the consequences could be significant if you ever face legal action.
CORGI offers a public liability policy tailored for plumbing and heating businesses. The information available on www.corgi-insurance.co.uk and through the online quote option will give you a clearer idea of what your specific considerations are. There’s no obligation, and it’s a good place to start research and comparing cover.