What Is Builder's Public Liability and What Does It Cover?
Builders face a double risk at all times. They can endanger and prejudice others through their work, as well as risk their own business, whenever they encounter errors, loss etc.
Construction work is dangerous to anyone involved – be they on the given property and even outside of it. Thus, it poses a threat to a great number of people, from the business owners, to the workers, to beneficiaries and pedestrians or bystanders. It is impossible to prevent events that may have negative consequences, no matter how much care is put into the work. Should anyone get injured, or their property damaged, they will present their complaints to the company hired to do the work. This is how you become responsible even for a minor scratch on a door, window, car etc. The legal costs as well as the compensation for the prejudiced party can mount to an outrageous sum. This is why the Builder's Public Liability Insurance exists.
Public Liability Insurance for Builders
Every business is responsible for the services it provides and their quality. However, at times it can harm others as a direct or indirect result of its activity. It can hurt them physically, compromise their possessions or cause them financial loss. The concern here is only the prejudice created to third parties that come in contact with your business and with its activities. It could be a mere pedestrian passing next to your scaffolding and getting injured by a falling tool. It could be a client whose brand new car is hit by a piece of equipment or material. What the builder's public liability does not cover, however, refers to your own possessions and employees.
The consequences of claims made against your business
As a builder, you take on a huge responsibility. Most clients are aware of it and will not hesitate to ask you beforehand whether you are an insured contractor or not. Such policies aren't mandatory in the UK, but many trade associations, as well as members of the public, require contractors to make proof of adequate insurance before they begin any work. When uninsured, you risk losing a great deal of potential clients. If you get contracts, then any mistake or negative consequences will be held against you. Clients can ask for hefty compensation, especially when it is about personal injury. It all gets worse when you face ther additional legal expenses. That can ruin your budget, as well as your reputation. It could simply be the end of your business. It will not happen, though, when you are properly insured, as the insurer engages to pay out.
The advantages of getting insured
To sum up, here is what you can expect once you sign up for the builder's public liability insurance with your provider of choice: • immediate protection against third-party claims, • payment of unplanned expenses required by situations described above (accidents that are your fault), • avoiding bankruptcy, • avoiding a bad reputation in the industry, • it wins you contracts, as it earns you the trust of the public.
The builder's public liability insurance represents vital cover for a business, since accidents canot be predicted. It is a real safety net and can be taken out for a single person or for an entire company. Shop around to find the best scheme insurers can provide to your business. Make sure to focus on the real level of cover that you need -- it will be determined by your industry and its specific risks, the region you work in, the equipment and other such variables. If you work with sub-contractors, keep in mind that they have an employee status while they work for you and should be treated as such, unless they are bona fide and protect themselves with their own cover.
UK builders association https://www.fmb.org.uk/
Self employed builders https://www.tradesmansaver.co.uk/knowledgehub/public-liability-insurance-self-employed-builders-cover