An Introduction to Public Liability Insurance for the Self Employed – Keeping ‘One Man Band’ Businesses Safe Rather than Sorry
It is important for both new and existing sole trader businesses to consider protecting themselves against potential litigation. People who have been self employed for some time might think that such misfortunes are never going to befall them, particularly in cases when they have successfully operated unscathed for a number of years.
To those who are new to self employment, it is not unusual that they are naturally preoccupied with the administration related to setting up new businesses, plus, of course, the securing and servicing of customers.
In either scenario, self employed individuals can be forgiven for overlooking public liability insurance, or simply not being aware of the potential risks they face on a daily basis. It may never occur to them that they are as likely as any large organisation to be implicated in legal action against them for injuries or damages suffered by clients, members of the public or sub-contractors. Incidents can and do happen, regardless of whether they work from home, in rented offices or at customers’ premises or sites.
In an age of increased ‘no win no fee’ litigation and continually evolving health and safety legislation, it is of imperative importance that the self employed ensure they are forearmed and forewarned. Compared to other aspects of running small businesses, sexy stuff it might not be. However, premiums for liability cover can be meagre prices to pay in comparison with the financial and reputational losses they could endure if unprotected.
Is Public Liability Cover Befitting To Certain Fields Of Self Employment?
No Sector Specific Prerequisites Necessary
Dependent upon the natures of their individual business, self employed individuals might be inclined to think that liability insurance applies most pertinently to tradesmen, such as builders or electricians. Whilst the needs for insurance in such sectors might be more immediately apparent, Public Liability Insurance spans all sectors.
Anyone who comes in to contact with other people besides themselves during the course of their work is eligible. Even self employed people who offer services remotely from home, without needs to meet with customers or enter their workplaces. If self employed business operations of this nature have requirements to sub-contract work to other people, then they would be well advised to consider public liability cover. Without it, they have no protection if their sub-contractors experience any mishaps whilst working on their behalves.
Whether the self employed operate as limited companies, partnerships or sole traders is irrelevant; each can protect their interests with liability policies. Their fields of specialism might span aerial erection, hairdressing, IT consultancy, manufacturing, plumbing, sales and marketing, teaching or upholstery. Accidents and damages do not single out certain sectors; they occur randomly across all and any conceivable sectors.
Is Liability Insurance Worth the Money for Self Employed People?
Perceived Scaremongering Translates to Plain Common Sense
Some self employed people might question whether liability cover is really worth their time and money. Many are suspicious of what has come to be referred to in the press as ‘elf ‘n’ safety’ and there are constant streams of well documented stories that can only be attributed by the layman as cases of PC gone mad.
Whatever personal opinions might be, it is a simple fact that many public sector and other organisations require their suppliers to have public liability insurance as part of their procurement processes. Hopefully, the vast majority of self employed people might never be party to any unfortunate accidents or damages for which they have needs to claim against their insurances. They might, however, consider coupling the unanswerable question of, “What if…”, with their determination to secure lucrative work.
It is also of extreme noteworthiness that liability protection does not exist solely to protect self employed people in cases of a customer tripping and falling on a loose piece of carpet in their office. Or if a self employed person should accidentally dislodge a soap dispenser from a customer’s bathroom wall. It is also a common sense product that insures self employed people against damage, losses and thefts relating to their own belongings and premises.
What Benefits Does Public Liability Insurance Offer The Self Employed In Real Terms?
Reassuring Protection for You and Yours
Much is made of public liability insurance’s function of safeguarding the self employed against a variety of claims that might potentially brought against them. This is unquestionably applicable to most modern working environments and in accordance with Government legislation. It is however, of equal importance to self employed people that liability protection also offers them peace of mind in relation to their own person and people, tools of the trade and workplaces.
Policies can include cover for work related equipment either owned by self employed people or hired by them in order to fufill work on behalf of their customers. Cover for damage to, loss or theft of goods in transit can be factored in, whether self employed people operate bathroom fitting businesses, where a suite could get chipped in their van, or bakery businesses, when wedding cakes could suffer similar fates.
Furthermore, a variety of policies available to self employed people offer them cover against the very things that are often referred to in tongue in cheek manners, amidst a backdrop of claiming culture. Personal accident cover could offer a make or break safety net to a self employed person injured whilst going about the course of their duties.
The covering of the costs of any damages incurred as a result of injuries to members of the public, staff or sub-contractors would become not so much a subject of ridicule if it happened to a self employed person rather than someone in a newspaper. Lacking public liability insurance, the self employed sole trader would be completely and totally liable. To risk losing a business and even a home is probably not a risk worth taking.
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