There are many costs in doing business, which is why public liability insurance is often overlooked by many tradesmen. But while this type of insurance is not compulsory in Ireland, many trade professionals see it as essential protection for their business.
Read on to discover why Public Liability Insurance is worth the investment.
Why you need Public Liability Insurance?
A public liability insurance policy protects a trade professional’s business against claims made by third parties for damages or if a member of the public is accidentally injured because of the work you do.
Regardless if you are self-employed, a sole trader or limited company – not having public liability insurance means you could be on the hook financially if you make a mistake that causes damage to life or property.
When you need Public Liability Insurance?
Here are a few examples when a public liability insurance policy could come in very handy:
- A tin of paint accidentally spills over soft furnishings and the owner sues the painter for damages.
- A member of the public is injured when a landscaper’s gardening tool is left out.
- A tiler accidentally drops a trowel, scratching a newly installed hob and the owner wants the hob replaced.
- A plasterer attempts to cover a sash window but falls and cracks one of the glass panes.
- A plumber installs a water tank which subsequently bursts, causing extensive water damage to a house.
Property owners expect you to have Public Liability Insurance
Homeowners do not want to claim against their own insurance policy if a tradesman makes a mistake or gets sued if they suffer an injury while carrying out work on their property. This is why having insurance could be the difference between you winning or losing work.
As many homeowners will request to view a valid and up-to-date public liability insurance policy before hiring, it is good practice to have your insurance in order before meeting prospective clients.
What does public liability insurance cover?
Public liability insurance generally covers:
- the cost of damage caused to another party’s property,
- the costs associated with personal suffering, injury or loss caused by an accident.
Cover limits will vary depending on your trade or business, but in Ireland, the amount will generally start at €1.3 million.
Some policies also offer optional coverage like a personal accident cover of up to €500 per week for temporary injury and damage to tool and equipment of up to €25,000.
How much does Public Liability Insurance cost?
There are several factors when calculating your insurance premium including the likelihood of a claim being made and the potential size of a claim, but as a general rule the riskier your business the higher your premium will be.