Do heating engineers need public liability insurance?

If you are working as a heating engineer, whether you are a self-employed sole trader or operate as a small business, you should make sure you have appropriate insurance cover.

In this video, part of our Public Liability FAQ series, we answer the question ‘Do heating engineers need public liability insurance?’.

What is public liability insurance?

Public liability insurance is designed to protect you in the event your business causes damage or injury to a third party. It relates to customers or members of the public, rather than employees.

For example, if you installed a heating system incorrectly, which ended up damaging a client’s home, your insurance would pay any damages you were ordered to pay if the customer sued you.

Similarly, if you accidently left some tools or equipment in a public place, and someone tripped over them, your insurance would help pay for any damages if this caused a serious injury that caused the person to sue you.

Must I have public liability insurance?

You are not required to have public liability insurance by law. However, you may find many potential clients will not work with you if you don’t have it, especially larger clients and developers, or public sector organisations.

You may also find you cannot join a trade association, which can affect your credibility as a business and impact on your ability to win contracts.

Why is public liability insurance important?

However careful you are, accidents can happen. Even small claims can take up a lot of time, be stressful to manage, and cost your business large amounts of money in damages.

If someone is injured by your equipment, they may be able to claim for loss of earnings, expenses and compensation. There are also legal fees and your time spent away from the business.

If you cannot pay, your business will be at risk, along with any assets used to secure your business.

How much does public liability insurance cost?

It will depend on the unique circumstances of your business. When calculating your premium, the insurance company will consider a number of factors including the size of your business, your claims record and the nature of the projects you do.