Last updated: 15/01/2025
Although Public Liability Insurance is not a legal requirement, it is a vital piece of cover for business owners who are looking to protect their business from claims and incidents.
This article will discuss what Public Liability insurance is, why it is important, and hopefully give you a better idea of why you need to have this cover in place as a business owner.
Public Liability Insurance is a type of cover that protects business owners in the event that a customer or member of the public brings a claim against them for injury, illness or property damage incurred as a result of their business activities.
Anything from a sprained ankle to accidental death that your customer or a member of the public suffers comes under the umbrella of Public Liability Insurance. It also covers damage to the possessions and property of the public, be it a water-damaged laptop or a house accidentally destroyed by fire.
Small businesses, whether they’re one man bands or have a handful of employees, will usually have Public Liability Insurance in place, protecting them should they cause damage to a property or injure a member of the public. However, there are some businesses who believe that the chance of a claim needing to be made are low, and would rather deal with the costs as and when they happen.
Waiting for something to go wrong, and then paying for the repairs from your businesses bank account can have severe financial implications to your business. If the claim is major – think grievous injury or even death – the costs could far outstrip what your business has in its coffers, which could massively affect your day to day life. There’s a reason that our Public Liability cover goes up to £5million – it helps offer financial protection to your business should something go wrong.
It's not just small businesses who’ll have Public Liability Insurance in place, big businesses will have robust policies in place too, covering them against claims from the public. In short, the risk of getting hit with a compensation claim, or being sued, is simply too great a risk, especially when these claims can run into the millions of pounds.
Tradespeople tend to be self-employed, which means they aren’t protected under anyone else’s Public Liability Insurance policies. They are responsible for organising their own business insurance and would take the full financial hit for any area where they are not covered (such as tool theft or any legal claims).
Also, tradespeople encounter hazards and risks as a part of their everyday work. Whether it’s using chemicals, machinery, or tools, or working at height, the average person working in the trades surrounds themselves with danger on a daily basis.
All of this puts tradespeople at an increased risk of accidentally causing harm, damage or injury to people and items around them compared with someone who barely leaves their office chair all day.
Also, many clients won’t work with a tradesperson who doesn’t have Public Liability Insurance in place. Why? Because they know that it’s not worth the risk. If you cause damage to their property, or injury to them, what guarantee do they have that you will compensate them, or complete the work correctly?
At first, nothing might happen. You carry on your job as before, without the financial protection that those with Public Liability Insurance have in place.
But then the day comes where you leave a trip hazard in place on a job, causing a client to fall down the stairs and break their leg. Or you reverse your work van into your neighbour’s wall. And for the sake of it, let’s say you’re really unlucky, and both happen on the same day.
Unsurprisingly, the first thing both the injured client and your neighbour will ask how they can be compensated, before potentially taking legal action against your business. They’ll both be looking for hefty pay outs – whether in medical bills, compensation for time off work or the cost of damages to repair the wall.
If you’re uninsured, you’ll find yourself having to pay for the damages out of your own pocket. Your business will need to fork out for the costs for the customer with the broken leg, and either the costs or the time to rebuild the damaged wall. Without the correct amount of cover in place, this could be catastrophic for your business.
Now consider the same scenario, but this time you have Public Liability Insurance. You’re not going to be delighted about causing harm to anyone, of course, but after a call to your insurer, you can relax knowing that the inevitable costs will be borne by your insurance provider and your bottom line won’t be affected.
At Rhino Trade Insurance, we offer Public Liability Insurance of up to £5million of cover, with higher values possible upon request. Now that’s some serious peace of mind.
We hope the above example has given you a good idea of why you, as a self-employed tradesperson, need Public Liability Insurance in place.
Simply put, having Public Liability Insurance provides the essential cover you may need to prevent serious financial difficulties for your business. Accidents can happen at any moment in the workplace. 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.
Having no Public Liability Insurance in place is a risk simply not worth taking. Working under the assumption that you would handle any pay outs resulting from a claim as and when they arise is a false economy and not recommended for any business owner.
Public Liability Insurance claims can be relatively low. Still, claims can end up costing tens or hundreds of thousands of pounds. It’s not unheard of for a complicated claim to cost millions – a disaster for any uninsured business.
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 you must pay out in the event of a claim, which 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. It offers you peace of mind in the knowledge that if something did go wrong, you would still be covered.
Public Liability Insurance is not legally required in the UK, but that doesn't mean it's not vital to ensure that your business operates successfully and compliantly.
So, Public Liability Cover is not compulsory, unlike other insurance policies (motor insurance and buildings insurance, or Employers Liability Insurance if you employ members of staff – more on that here). You won’t face any legal action for not having this insurance in place, but it can seriously hamper your reputation amongst potential customers, and even be the reason you don’t pick up larger contracts with local councils, for example.
Rhino Trade Insurance are experts in insurance policies for tradespeople working in the UK.
Our Public Liability Insurance can cover you for many situations where you may be found liable.
Here’s a quick breakdown of what we offer:
Switching insurance providers could not be easier. If your insurance is coming up for renewal, you may only have a few weeks to wait until you can switch your cover. With Rhino, you can take out a policy up to 30 days in advance. And if you’re really blown away by what we have to offer, you could cancel your current liability insurance policy and take out a policy with Rhino.
In both cases, we here at Rhino would ensure a seamless transition and ensure that you have no gap in cover.
If you have recently taken out liability insurance and want to switch to Rhino, note that all insurance policies have a 14-day cancellation period where you can cancel unpenalised, so if you’re within that window then switching to Rhino maybe even more straightforward than you think.
If you want to switch to Rhino Trade Insurance, then you can do so today. Just give our team a call on 01162437904 or take a look online – it only takes a few minutes to get up and running.
Meet Ed - Customer service extraordinaire! (At least our customers think so..). Ed really is a cool character and a valuable asset to the Rhino Trade Insurance team. Ed works hard for our customers (almost as hard as you do!) and makes it his mission to give the best possible service. We think you'll love him!
Trade most identified with: Groundworker – Ed's primary responsibility is renewing insurance for our loyal Rhino customers and making sure they have all questions answered. Every good groundworker makes sure that the earth is secure, and Ed's not much different, except Ed makes sure that people's businesses are secure, from an insurance standpoint (the analogy does makes sense if you really think about it!).
Confused about Public Liability Insurance? We’ve got you covered. Learn how this essential policy protects your business from accidental damage and injuries, why it’s important, and how you can get affordable cover tailored to your trade with Rhino Trade Insurance.
In this guide, we'll delve into the risks shopfitters face, explore the types of insurance that can offer protection and explain why many shopfitters trust Rhino Trade Insurance with their business needs.
Are you a carpet fitter? Do you work for yourself? If the answer to both those questions is yes, put down whatever you’re doing and keep reading. Your business will thank you for it.
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