PUBLIC LIABILITY INSURANCE

Public Liability Insurance Frequently Asked Questions

Why do I need Public Liability Insurance?

Simply put, having public liability insurance in place provides the vital cover you may one day need to save your business from going bankrupt. Accidents can happen at any moment in the workplace, and as tradespeople working in high-risk locations, using high risk tools, or performing high risk jobs, the need for this type of insurance cannot be understated. Public liability insurance provides the vital cover needed in the event that you are required to pay compensation as a result of a claim. Claims can cost up to millions of pounds, so having liability insurance in place protects your business from any unplanned and unforeseen expenses should any accident or hazard occur.

What level of public liability insurance do I need?

The level of liability and amount of insurance required for your business differs depending on numerous factors concerning the work you carry out and the types of services you provide. Your level of liability means the amount of money that you are covered for in the event that you ever need to make a claim. As a result, this decision should be based on the risk of a claim being made and the potential size of a claim your work may incur. Your trade, the types of jobs you are carrying out, your tools and your client’s locations may be a factor you should consider when deciding how much public liability insurance you need. Often your client or customer may demand that a certain level of liability insurance is obtained before starting work, and in these cases, you will need to ensure that you are covered.

Is public liability insurance a legal requirement?

Public Liability Insurance is not legally required here in the UK, but that does not mean that it is not vital in ensuring that your business operates successfully and compliantly. Unlike other insurance policies (motor insurance/buildings insurance for example) public liability cover is not compulsory and by not having it in place you will not be subject to any legal action made against you. Having public liability in place is a very important commodity to any business and shows prospective customers and clients that you are protecting you and them against any potential financial risk. The insurance itself offers both parties peace of mind that you are covered and may be the deciding factor in whether you will win work with a specific client.

What is the difference between employers’ and public liability insurance?

Public liability insurance is designed to cover the policyholder’s business if an accident or death to a member of the public, or damage to third party property occurs. The insurance can provide cover for more than 1 individual working within the business, but if you require cover if an employee has an accident at work, then you need employer’s liability insurance. Employers’ liability insurance covers any injuries or accidental death caused to any staff members you employ. Claims of compensation made by employees can be costly, and not having the right insurance in place in these cases can be the difference between a successful business, and financial ruin. Having employer’s liability insurance in place gives you the peace of mind that as an employer you are covered in the event of a claim arising from a staff member. Employee accidents, like customer or client claims, can be very costly, so having a financial backstop in place is very important in ensuring that you and your business is properly covered. Remember, if you have staff working in your business then employer’s liability insurance is a legal requirement. Note that you can easily add on employer’s liability insurance to any Rhino public liability insurance policy.

How much is public liability insurance excess?

Rhino’s Public liability insurance can provide cover from £1m, £2m, £5m via our online shop platform and even £10m upon request. All our tradesman liability insurance policies have a £500 excess as standard, meaning that if you ever needed to make a claim, then you would only be required to pay a one-off excess of £500. This excess remains the same regardless of the size of the claim, meaning that if the claim was for £1000 or £1,000,000, then the excess would remain the same. The only event that would affect the policy excess is in cases that a claim occurs as a direct result of the use of heat. Claims arising as a direct result of the use of heat are very uncommon, but can be made by heating engineers, plumbers etc. when performing high risk work. In these cases the excess on a liability insurance policy rises to £1000 per claim.

What if I have more than one trade?

Public liability insurance provides protection for all trades that you work in, and as a Rhino Trade Insurance customer you are able to specify your main trade and secondary trade in order to get the proper cover your business requires. We understand that not all businesses are the same, therefore all customers should have the chance to ensure that all elements of their work are protected. You can choose your trades throughout the easy quote system and remember that unlike other insurance providers Rhino will not also demand your personal information until you are happy and satisfied with the quote you have retrieved. Should our system not allow you to input all trades required, or if you have any specialist requirements or questions, please do not hesitate to contact our team directly who all would be very happy to assist you.

Public liability insurance cost for different trades ?

Public liability insurance quotes can differ depending on a number of factors, and what trade you are can certainly affect the cost of a quote. Different trades carry with them different risks in the eyes of an insurance underwriter, and because of this not all trades attract the same public liability premiums. The cost factor for liability insurance can differ as a result of the size and scale of your business, the number of individuals you wish to be covered by your policy, and the level of cover you require. The trade you carry out is a key factor in equating the cost of your public liability insurance however, so it is common for different trades to have different insurance premiums for the same level of cover. You can easily compare the difference in premiums via our easy to navigate online shop by generating a public liability insurance quote. Rest assured, if you’re looking for cheap PL, our prices are the cheapest we’ve found on the market!

What is the difference between public liability and professional indemnity insurance?

Public liability insurance covers accidental damage to a customer’s property and accidental death or injury to members of the public because of the work you carry out. Liability insurance covers the financial risk of compensation and settlements brought on by a liability claim and is a must have for any hard-working tradesman. If during your line of work, you offer professional advice, then professional indemnity insurance will cover you in the event of a claim being made because of professional negligence. For example, if you provide design or specification advice as part of your job, advice that leads to your customer incurring a financial loss may be deemed as professional negligence, and it is in these cases that this would be insured under your professional indemnity insurance policy. Note that you can easily purchase professional indemnity insurance alongside other insurances with us here at Rhino. We offer fantastic prices on both insurances to ensure that you can get covered whilst taking care of your company’s bottom line.

What happens if you have no public liability insurance?

Having no public liability insurance in place is a risk simply not worth taking. Attempting to work under the assumption that you would be able to handle any pay-outs as a result of a claim is not recommended. Thankfully, most public liability insurance claims are relatively low, but there are cases where claims can be very expensive, and in these cases having the right insurance in place can be the difference between a stable business, and bankruptcy. If you have no public liability insurance in place and you must pay out in the event of a claim will mean that all compensation comes out of your business’ bank account and directly from your bottom line. Having insurance in place gives you financial protection in the event of an accident happening and offers you peace of mind in the knowledge that if something did go wrong, you would still be covered.

How do I switch public liability insurance providers?

Switching insurance providers could not be simpler. You could simply cancel your current liability insurance policy and take out a policy with Rhino, or you could wait until your renewal date and do it then. In both cases, us here at Rhino would ensure a simple and seamless transition and will make sure that you have no gap in cover. If you have only just recently taken out liability insurance and want to switch to Rhino, note that all insurance policies have a 14-day cooling off period where you can cancel unpenalized, so switching to Rhino may be even more simple than you think. If you want to switch to Rhino trade insurance, then you can do so today. Simply give our team a call on 01162437904 or you can easily purchase it yourself online.