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Do you need public liability insurance as a sole trader?

by constructaquote - 11 July 2016


The January 2016 Labour Force Survey found that there are over 4.6million self-employed people in the UK and a large percentage of these people are registered as sole traders.

As a sole trader you tend to work without employees and are responsible for your own business, tax and financial issues. This makes becoming a sole trader a big responsibility because if anything should go wrong in your business, it is down to you to sort out.

With this in mind, you may decide to take out public liability insurance.

“Public Liability Insurance – is it relevant for my business?”

If you run a business which involves meeting members of the public face-to-face, whether this is at your premises or on their premises then there is a risk that you or your business operations could cause them injury, illness or property damage.

Public liability or PL insurance as it is also sometimes referred to could ensure that your business is protected in the event of a claim as you could be held liable for damages, compensation and even legal fees.

There are many ways in which your business could come into contact with clients or members of the public; from tradesmen who regularly enter customer’s houses to IT professionals who are called out to deal with hardware problems on-site.

The level of public liability insurance you may decide to opt for could depend on the nature of the workplaces you visit or the nature of your home business premises. Limits are usually around £1million to £5million however you may require a higher limit if you work in a hazardous industry.

When you work on someone else’s premises you may also find your chances of winning the contract or project are dependent on the insurances you have in place. Whilst this is more common for professional indemnity insurance, you may find some potential clients want to see evidence of your public liability insurance too so it could possibly help you to secure future work.

Although it is not compulsory for most businesses, it may be considered essential if you work directly with the public on any level. There are different levels of cover available and many insurers offer policies designed specifically for individual industries or specifically for sole traders.

To find out more please call one of our insurance executives on: 08081686868 who will be happy to run through any questions you may have and offer you a quotation.