Public liability insurance protects tradesmen from various hazards that are inherent when having clients or members of the public come onto your business premises, or you onto theirs. As a sole trader, all of the responsibility rests on your shoulders. Public liability insurance along with professional liability insurance is a sure way to protect you and your business against all unforeseen threats. Having a public liability insurance policy makes your job a little easier by protecting you from situations when a claim is made against you. Sometimes a third party client will become injured or sustain damage to their property, for which you are legally responsible. Having public liability insurance can make dealing with these situations much easier.
There are many different kinds of public liability insurance policies for sole traders such as insurance for plumbers. Whatever policy is chosen, there should be some basic levels of coverage provided. This would include compensation for any monetary damages that may be awarded to the claimant. Another part of a public liability insurance policy will also help pay for legal expenses. Sometimes the services of a lawyer may be needed – whether for representing you in court or working out a settlement deal with the claimant. Depending upon the situation, if the claimant has received injuries, they may need medical attention. As a sole trader, you might be liable for these expenses.
Sole traders have a lot of freedom in their trade in that they can make their own decisions and setting up their business can be rather simple. However, as a sole trader, the liability against you is unlimited. This means in some situations, without insurance coverage, your personal assets can become targeted. Having public liability insurance not only protects your business but also keeps your personal assets safe. There really is no good reason why a sole trader should not obtain public liability insurance; the only possible exception being is if they never set foot on their client’s property, and no third party individuals set foot on their business premises.