The Benefits Of Public Liability Insurance For Contractors

by | Aug 9, 2023 | Public Liability Insurance

In the context of contractors, there are several benefits of public liability insurance which should not be ignored. This type of policy protects contractors by covering compensation and legal expenses if a customer or member of the public files a claim for personal injury or property damage resulting from their work.

Regardless of whether they are freelance individuals, run a small business, or head up a large corporation, contractors are exposed to potential legal risks. With injury claims making up two-thirds of claims made in the first half of 2022, the need for professionals to protect themselves in this area is pressing. Having the appropriate insurance coverage in place provides peace of mind, with the knowledge that their business is safeguarded against unexpected financial burdens that could arise from such claims.

In this article, we explore the benefits of public liability insurance for contractors in greater detail, discussing the many reasons why this type of coverage should not be ignored.


Understanding public liability insurance


At a fundamental level, public liability insurance protects contractors from potential claims made against them due to personal injury or property damage caused by their activities or operations. It covers a range of incidents, including:

  • Slip and fall accidents
  • Property damage caused by negligence
  • Injuries sustained due to the work a contractor has provided

Such a policy will help to cover the cost of compensation claims and legal expenses that may arise as a result of accidents or incidents involving the insured’s activities, products or services.


The key benefits of public liability insurance for contractors


There are several noteworthy benefits to having a public liability insurance policy in place, including:


Protection against legal liability


Public liability insurance protects by covering the costs of legal actions that may arise due to injury or damage caused to a third party. It helps in paying for legal expenses, such as lawyer fees and court costs, and also covers the compensation awarded to the injured party if the insured is found liable for the incident.


Financial security


A public liability insurance policy offers essential financial security to contractors, by safeguarding their financial assets against losses incurred through legal and compensation claims. With this coverage in place, policyholders can have peace of mind knowing that their financial assets and reputation are protected from unforeseen and potentially costly incidents.


Enhanced reputation and trustworthiness


Aside from protecting a contractor’s reputation, public liability insurance can also serve to enhance their credibility and reputation in the eyes of potential clients. By having a policy in place, a contractor shows that they take responsibility for their work and are prepared to cover any potential damages, providing clients with reassurance and confidence in hiring them.


Increased business opportunities


Many clients and contracts require contractors to have public liability insurance as a prerequisite, making it essential for winning certain projects and tenders. Contractors who can present this type of cover open themselves up to increased business opportunities that may otherwise fall by the wayside.


Peace of mind


Public liability insurance provides contractors with vital peace of mind by offering financial protection and coverage against potential claims and legal liabilities resulting from accidents or damages caused during their work. With this insurance in place, contractors can focus on their tasks without worrying about the financial implications of unforeseen incidents.


The Benefits Of Public Liability Insurance For Contractors - ERM Financial Services (2)


How to choose the right public liability insurance


For a contractor to get the most suitable protection from their public liability insurance policy, it’s integral to choose a level of coverage that best suits their unique business circumstances. There are several boxes to tick before a comprehensive and tailored policy can be built:


1. Assess your risk exposure


Contractors must conduct a thorough assessment of the potential risks inherent to their specific trade to make informed decisions about insurance coverage. By identifying the unique risks associated with their work, they can choose appropriate insurance policies that address these particular liabilities, ensuring they are adequately protected.


2. Level of coverage


Selecting a public liability insurance policy with the right level of coverage is crucial for contractors. Underinsurance can pose a significant financial risk, leaving them vulnerable to paying out-of-pocket for compensation and legal costs if a claim exceeds their policy limits.


3. Insurance provider’s reputation and claims process


Choosing a reputable insurer with a straightforward and fair claims process is vital for contractors, as a reliable insurer will handle claims efficiently and transparently, minimising delays and stress during challenging times. A positive track record also reassures policyholders that the insurer will be on hand to provide the necessary support when a claim is made.


4. Consider additional types of coverage


In addition to public liability insurance, contractors may need other types of coverage to ensure comprehensive protection. These include professional indemnity insurance, which safeguards against claims of professional negligence or errors in services provided; and employer’s liability insurance, which covers compensation claims arising from employee injuries or illnesses at work.


5. Consult with insurance professionals


For personalised advice on obtaining the right public liability insurance and other coverage tailored to individual needs, it is advisable to consult with insurance professionals who can assess specific risks, as well as recommend suitable policies and ensure contractors have the right level of protection for their business.


ERM Financial Services is your provider of comprehensive public liability insurance


Since the company’s inception 30 years ago, we here at ERM Financial Services have built up a proven track record for providing contractors across a variety of industries with tailored, comprehensive coverage, through public liability insurance policies and much more.

Our comprehensive public liability insurance includes:

  • Financial and personal protection against claims for personal injury or property damage
  • Enhanced reputation and credibility
  • Further business opportunities
  • Peace of mind

You can acquire all of the above and more by choosing to protect your business with public liability insurance from ERM Financial Services. Our tailored approach ensures comprehensive coverage, offering financial protection against personal injury and property damage claims. With our expert guidance, contractors can focus on their work, knowing they have the right level of protection for their specific needs.

Contact us today to safeguard your business, and don’t forget to check out our blog and resources for the latest insurance industry news and insights.