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The Risks of Being Self-Employed Without Public Liability Coverage

Rhino Trade Insurance 24 May 2023

Working for yourself is a brave step. You’re choosing to forge your own path, which comes with greater freedoms than if you'd chosen a life on someone else’s payroll. However, being self-employed comes with certain risks, which is where Public Liability Insurance comes in.

We're here to provide you with a quick overview of the value of Public Liability Insurance for independent tradespeople. Why should you purchase it? Why is it so important? And will having it result in more customers for you? Let's take a quick look. 

Why consider business insurance?

There are many types of trade business insurance available for self-employed individuals to help protect them from the various financial pitfalls that can come with being your own boss.

The kind of insurance that is best for you will depend on a number of variables, which include:

  • The number of workers you have 
  • What equipment and vehicles you work with
  • What resources do you need to safeguard 
  • The type of work you conduct.

What is Public Liability Insurance?

One of the most well-known and most-purchased insurance plans for tradesmen and women is Public Liability Insurance

It’s so popular for a simple reason - failing to have this form of insurance leaves you and your company vulnerable to potential financial catastrophe.

You don't need to look far on social media for stories showing how uninsured tradespeople have seriously harmed or injured their clients or their property, incurring a hefty financial loss in the process. Dramatic tradesperson disasters might make for interesting viewing on social media but they come with a huge financial cost for those involved - often large enough to leave them bankrupt. 

As a cost-effective form of insurance, Public Liability will protect you and your company up to the degree of indemnity you choose. It has your back for any harm to a client's property or injury to a member of the general public brought on by your work. 

Lack of Public Liability Insurance could be extremely costly and have serious ramifications. Understanding the need to have appropriate protection could one day save your trade business. 

What makes Public Liability Insurance necessary?

First off, having this insurance is not legally required for your business (we know, if it's important, why doesn't the law make you require it?!) Having said that, getting a policy for anyone who interacts with the public at work is a smart business decision. 

It is the simplest way to demonstrate to customers and potential customers that you are providing a service that takes duty of care seriously. Accidents can and will happen, even with the most cautious and skilled tradespeople; therefore, it is best to get yourself covered. 

Damages that could result from a claim being made against your company might exceed hundreds of thousands of pounds, or even tip into the millions. For instance, if you were a bathroom fitter replacing an old bathroom and mistakenly caused a leak that caused water to seep under the flooring, the property would be deemed dangerous. In such cases, it’s almost certain the client will instigate a lawsuit against your company. Without Public liability insurance, could you afford to pay the final bill?

Your trade firm will be protected from having to pay out of your own pocket for claims like this if you have Public Liability with Rhino Trade Insurance. You won't have to worry about any legal issues or take extra time to handle compensation. We will take care of everything so you can go about your everyday activities.

Will it help with my credibility and reputation?

Anyone looking to hire a tradesperson will almost certainly compare prices and shop around. They'll also likely inquire about your insurance, which might prove to be the deciding factor in the client deciding to hire you. Remember, if a client permits an uninsured tradesperson to enter their property and something untoward happens, the customer may be responsible for the costs. They will, therefore, probably require you to have at least Public Liability Insurance in place. 

If you provide services to local businesses, governments, or organisations, they will almost certainly request the appropriate level of protection.

Not only having Public Liability Insurance in the first place, but having a high enough level of indemnity to cover most eventualities, will enhance your credibility and reputation in your chosen area of business. 

Find out more about Public Liability Insurance here

What about trade associations?

Similarly, you need to have Public Liability Insurance in place in order for your trade business to be recognised by a particular trade association or obtain awards from relevant trade bodies.

Getting yourself insured for a small monthly fee can seriously help catapult your business's standing in your local area. You will be able to advertise that you have the right insurance in place, and then if you do join a trade association, you can share that you are part of a wider base of like-minded professionals sharing the latest best practices in your line of work.

Luckily, taking out Public Liability as a self-employed tradesperson couldn't be easier. Rhino Trade Insurance offers Public Liability cover for various levels at amazing prices. Our experts have created wonderful policy options fit for a huge variety of trades. Available cover ranges from £1 million to £5 million. Find out more by getting a quote here. 

Why Choose Rhino Trade Insurance?

Having trade insurance is essential if you own your own business and interact with clients. You need to protect yourself whether you manage a huge team or go in alone. 

Rhino Trade Insurance has created some of the best insurance around. You can get valuable protection in a variety of circumstances, including individual accidents, legal costs, theft of tools, and negligence; your business is covered by our policies.

That's pretty much it. We can provide you with a price in just a few minutes without needing to know your life story. Call our UK-based specialists at 0116 243 7904 for a chat and to get any questions answered, or check our online, market-leading quote engine.


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