What liability insurance do shelving and racking installers need?
If you work as a shelving and racking installer, it’s important you are properly insured. This FAQ examines the types of liability insurance you will need.
What are the main types of liability insurance?
There are a few key forms of cover required. These include:
- public liability insurance
- professional indemnity insurance
- employers’ liability insurance
- insurance for your tools
There may also be other types of insurance you need depending on your circumstances. In some cases, you may be legally or contractually required to have insurance. Regardless of obligation, having insurance provides valuable peace of mind and protection should the worse happen.
What is public liability insurance and why do I need it?
Public liability insurance protects you should a third party (e.g. a client or member of the public) make a claim against you for damage or injury. These types of claims are common and can amount to thousands of pounds for personal injury, compensation, damages, and legal fees.
If you work with larger clients, you may find they insist you have public liability as part of your contract. If you wish to join a professional body, they may also require you to have public liability insurance as part of the terms of your membership.
What is professional indemnity insurance?
Professional indemnity insurance provides protection if you give professional advice that turns out to be negligent. The advice might be about the design of shelving, or the specifications for the racking.
If the advice you give turns out to be wrong, and you are sued by your client for financial loss, your insurance will protect you against any court order to pay for the losses.
What is employers’ liability insurance and do I need it?
Employers’ liability insurance is a legal requirement if you employ anyone. This includes any part-time employees or trainees. In some cases, it may also include sub-contractors. That means it’s important not to assume that, just because you’re a sole trader, you don’t need it.
Employers’ liability provides protection in the event an employee sues you for injury or illness they’ve suffered as a result of working for you.
If you don’t have this insurance when you are required to do so, you can be fined up to £2,500 per day.
Insurance for your tools
If your tools are lost or stolen, you are probably going to struggle to fulfil your contractual obligations. This in turn can have a massive impact on your cashflow and reputation.
If you have insurance, you can quickly replace your tools and get back to work.