Common exclusions in a Public Liability Insurance policy?
Public Liability Insurance is a tradesperson's bread and butter when it comes to protecting their business. But are there any exclusions to what it covers, and what other types of insurance can you add to your core policy to make sure there are no gaps in your protection?
Let’s look at standard exclusions in a Public Liability Insurance policy and how you can best protect your business with valuable add-ons to your cover.
What is Public Liability Insurance?
If you're unsure whether your company needs Public Liability Insurance or not, consider how you’d deal with a claim without insurance in place.
Paying out of your own pocket or business profits is simply not an option for many businesses, and that’s just for the smaller claims.
Public Liability Insurance is there to cover the costs of defending your business against claims brought by third parties, including claims resulting from damage, injury, or accidental death.
Find out more about Public Liability by reading the many useful blogs we have on the subject here.
What are some examples of common claims on Public Liability policies?
Here are three of the most common claims made on tradespeople’s Public Liability Insurance.
When you, an employee, or your company accidentally harm someone else's property or possessions, it is called accidental property damage. Public Liability Insurance takes care of the cost of any subsequent repairs or replacement costs. In an industry with a high degree of risk, Public Liability Insurance ensures your business survives should a customer take legal action against you for damage caused.
A third-party injury is a person who gets hurt in an accident but is not a direct participant in the event - like a member of the public or your customer. Public Liability will cover the cost of any claims filed against your company for this reason.
Slips, Trips and Falls.
As a tradesman or woman, if you have your own work premises, then you are responsible for the safety of anybody who enters your space. This includes suppliers, customers and third parties. Common accidents like slips, trips and falls will be covered under your Public Liability Insurance.
We spoke about common risks in the trades and how to protect against them.
What is excluded from Public Liability Insurance?
Knowing what you can and cannot expect from your cover will prevent any confusion later down the line.
Here are various typical exclusions you can expect in most Public Liability Insurance policies:
If an employee gets injured or ill as a result of carrying out work for you, they may bring legal action against your business. A situation like this wouldn’t be covered by Public Liability Insurance - you’d need Employers Liability Insurance for that.
In the UK, any company that hires staff has to hold a level of Employers' Liability Insurance by law.
Employer’s Liability Insurance is a common addition to Public Liability Insurance and protects both you as a business owner and your employees if they get ill or injured while working for you. It's an excellent safeguard for your company and will cover any medical expenses they accrue as well as their compensation while they recover, allowing you to maintain the financial stability of your company.
If you make a mistake or overlook something on a project that causes a client to lose money or give bad advice with a negative effect, Public Liability Insurance won’t apply.
However, Professional Indemnity Insurance will cover the cost of defending your business from claims made against you.
If you yourself are injured, Public Liability Insurance won’t cover it.
Instead, Personal Accident Insurance shields you if you get an injury or pass away due to the work you are doing. This is a valuable addition to any business policy as a tradesperson due to the risks attached to your job. Ultimately, this protects your own health and welfare, and if things go wrong on-site, you have peace of mind knowing you (or your family) will be covered financially.
Your Public Liability Insurance won't provide cover if you break the law resulting in damage or injury. For example, wilfully committing fraud, purposely inflicting injury on another person, or causing damage to property.
Why Talk to Rhino about your Public Liability cover
Rhino is the trade insurance experts. We advise making sure your company is sufficiently covered against the risks your job poses to you and those around you, which may mean including add-on policies alongside your Public Liability Insurance.
The team at Rhino Trade Insurance have ensured that our Public Liability Insurance is easy to understand and simple to take out. All of our policies are distinct and unique to your trade business.