How much is public liability insurance for a shelving and racking installer?
If you work as a shelving and racking installer, you probably already know how important it is to have the right insurance in place. Part of working out your overheads will involve accounting for public liability insurance, and how much the premium for cover may cost.
What is public liability insurance?
Public liability insurance covers claims made by a third party, such as a member of the public, for damage to property or an injury you are liable for.
For example, if a member of the public tripped over some of your equipment and suffered a broken ankle, they may sue you. Your public liability insurance will cover the cost of any court order for damages and compensation. Your insurance will also meet the legal fees.
Do I really need public liability insurance?
Although public liability insurance is not compulsory, public liability claims are common. They can also add up to substantial amounts of money.
Imagine a claimant with a broken ankle. They may have to take extended time off work, and pay for transportation to hospital appointments. They may also need to purchase specialist medical equipment.
In all, they may claim for lost earnings, expenses, and pain and suffering endured. This can quickly amount to thousands of pounds.
For you, there is also the time you will need to take off work to deal with the matter – time that won’t be spent earning an income.
If you can’t pay the amount ordered, your business and assets could be at risk.
How much public liability cover do I need?
The amount of cover you need will depend on your circumstances. It is common to have public liability insurance cover of anywhere between £2 million and £10 million.
Your contractual requirements may be a factor (e.g. your client could insist you have a certain level of cover). It will also depend on the sort of work you do. If you take on complex, high-risk projects, you may need a higher level of cover.
If you’re not sure how much cover you should get, you should speak to your professional body or a respected insurance company that understands different trades.
How much will public liability cover cost?
This will also depend on your circumstances. The cost will primarily be calculated according to the number of employees you have. However, other considerations include:
- the level of cover you need
- your insurance history
- the types of projects you engage with.
If you operate as a limited company with employees, your insurance may also cost a little more than if you are a sole trader.