How Public Liability Insurance helps to secure new business
Public Liability Insurance is important for keeping you protected financially should something happen to a third party (or their property) while you’re working.
But did you know that Public Liability Insurance also comes with other benefits - such as helping you attract new clients to your business?
How Public Liability Insurance can benefit tradespeople
When you own a business, you bear some responsibility for the welfare of your customers, staff and members of the public. But running a business comes with various unavoidable risks, such as an employee getting hurt at work, damage that destroys property, or a client suing you for a breach of contract.
In such cases, you’ll be glad you took out the right trade insurance to cover yourself financially. But it can also help you attract new customers.
How can Public Liability Insurance help tradespeople secure new business opportunities?
As a self-employed tradesperson or small trades business, having trade insurance in place demonstrates to potential consumers and clients that you are safe to do business with. This is because you have a recognised way to be compensated if something goes wrong with the project you are working on for them.
In fact, it’s often a condition of the contract for contractors and customers that you hold certain insurance policies. Usually, this is Public Liability Insurance and Employer’s Liability Insurance as a minimum.
This goes for various organisations like local governments and councils, large industries and corporations and trade associations.
How can trade insurance boost your professionalism and credibility?
Having a good level of business insurance increases a company's credibility because many stakeholders and customers prefer doing business with companies that are well-protected in case accidents or damages occur.
Trade insurance is always a smart choice, as it will step in and save the day financially should something unfortunate happen. This being said, the best approach is to combine insurance coverage with effective risk management and crisis management procedures, which you can read from our blog post here.
Risks that tradespeople face
Accidental damage or injury to a third party
Having company insurance is essential not just for your own protection but also for the protection of others around you.
Public Liability Insurance offers protection to your clients if they need to bring a legal claim against you. This is because the legal and compensation costs will be covered via your insurer - so they don’t have to worry about being left out of pocket. This makes you much more attractive as a choice of tradesperson than someone uninsured.
Public Liability Insurance will also protect them if they suffer losses due to an accident like water damage.
Legal action and compensation claims
In the world of small trades businesses, legal claims are relatively common.. They can be expensive, and your company could easily go out of business if you don't have insurance in the case of a lawsuit or a liability claim. Even if you win the lawsuit, the cost of your legal defence may simply be too high if you’re uninsured.
Public Liability Insurance will provide you with peace of mind so that you can focus on what really matters - running a successful business - instead of worrying about what might happen should you need to fork out for all the costs of a compensation claim.
How Public Liability Insurance can protect your business from these risks
Public Liability Insurance covers your business from the expense of defending against lawsuits and paying out compensation claims.
Due to the inherent dangers associated with the line of work, tradespeople who work on-site for clients must have proper insurance coverage in place in order to be hired by local government organisations like councils. This is because large organisations are appropriately risk-adverse and they want to know there is a financial safety net out there. The typical settlement amount for a damage or injury lawsuit may fall between the hundreds of thousands and millions of pounds.
Additionally, if you want to expand your clientele and draw in bigger customers, they will do their research and make sure you have the appropriate level of insurance in place before hiring you.
If you have any enquiries or would like more details regarding Public Liability Insurance, kindly get in touch with our trade experts on 0116 243 7904; we are available six days a week.
The Importance of having Public Liability Insurance
Consequences of not having insurance
In reality, accidents and adverse incidents can happen anywhere at any time, to anyone. This is why Public Liability Insurance is for every trade business. You will need Public Liability Insurance if any of the following apply:
- You use machines and power tools while at work.
- You deal with dangerous substances and potential accident-causing factors like water and power.
- You run a business from a place that the general public, clients, or customers may visit.
- You run a home-based business, and clients visit you for meetings.
Public Liability Insurance covers all of your interactions with people, such as:
- Anyone who comes to your place of business
- The customers/clients themselves
- The general public and third parties (such as your company's suppliers).
Public Liability Insurance does NOT cover:
- Staff members, who are covered under Employers' Liability Insurance
Benefits of having insurance
Although we all make an effort to practise safe working in the workplace, accidents do happen and may give rise to legal action against your company. Public Liability Insurance can help with that. If someone is hurt or property is harmed as a result of your working style, it can help to protect you.
Having trade insurance can also help attract new business, as potential clients will be reassured by the fact that you have the financial backing of an insurance company should anything go wrong.
The financial security trade insurance offers in the event of unexpected damages is one of the major benefits of getting insurance for businesses. Companies could encounter circumstances that have a negative impact on their profitability as they carve out their road to success. Errors may culminate in costly legal proceedings, while catastrophes might wipe out a significant portion of their income.
Why Choose Rhino Trade Insurance?
Why not check out what Rhino Trade Insurance has to offer for tradespeople wishing to insure their business? With over 2000 UK tradespeople giving our cover five stars on reviews.com, you'd be hard-pressed to find a better trade insurance provider.
Call our helpful staff at 0116 243 7904 for more information, or visit our website and utilise our simple online quote generator. It will take 60 seconds to receive a price.