Is public liability required for house painters?

If you are working as a house painter, it’s important to set your business up properly. That includes registering for tax, having a good admin system in place and, of course, having the right insurance. This FAQ examines one type of business insurance: public liability.

What is public liability insurance?

Public liability insurance protects you and your business should something you do cause injury to a third party or damage to their property. This could be in respect of a member of the public or a client.

Public liability claims are common. They can cover small incidents, such as spilling paint on a carpet, to larger claims such as someone tripping over your equipment and suffering a serious injury.

Is it a legal requirement to have public liability insurance?

It is not a legal requirement to have public liability insurance, but it is often a contractual requirement. This is especially true when working for large companies or public sector organisations.

Without public liability, you either may not get work with these types of business or may be in breach of contract if you work without it. It is also often a membership requirement of trade associations. Even smaller clients, such as homeowners, can expect you to have public liability.

What happens if I don’t have public liability insurance?

In addition to losing out on work and being in breach of contract, it can damage your reputation.

If you are successfully sued and can’t pay the damages, compensation and legal fees, your business and assets could be at risk. Your insurance is designed to cover these costs.

How much public liability insurance do I need?

This will depend on several factors, including the sort of work you do. However, it is common for small businesses in the construction industry to have public liability insurance cover of between £2 million and £10 million.

How much will it cost?

When calculating your premium, an insurer will consider factors such as:

• how your business is set up
• your claims history
• the amount of cover you need.

If you have a small company with a couple of employees, your insurance may cost a little more than if you are a sole trader.

Is there any other insurance I need?

If you have an employee or apprentice, or use the services of friends and volunteers, you are legally obliged to have employer’s liability insurance. You should also consider insuring your tools.

Should you provide professional advice as part of what you do, you may also need to consider professional indemnity insurance.

If you are not sure about what other insurance you need, speak to an insurance company with experience of providing cover for your industry.