Do carpenters need public liability insurance?

As a carpenter and tradesperson, it’s important to have the correct insurance. But with so many different types of insurance out there, it can be difficult to work out which cover you need and why.

What is public liability insurance?

Public liability insurance is one of the main and most important types of insurance you might need to consider if you or your work comes into contact with members of the public or clients.

In the event something you do causes damage to property or causes someone injury or illness, it is your public liability insurance that will cover the costs of any damages, compensation, and legal fees.

Am I legally required to have public liability insurance?

Although the law does not state that you need public liability insurance, many clients – especially public sector organisations and larger businesses – may insist you have it as a term of your contract, and will not work with you if you don’t have it.

Trade associations and professional bodies may also insist you have public liability insurance as a term of their membership. As a result, it can affect your business and reputation as a respectable tradesperson if you don’t have it.

Does it matter whether I am self-employed or a limited company?

Regardless of how your business is structured you may still need to consider public liability insurance.

The only difference is that you may find your insurance costs less if you are self-employed. It will also cost less the fewer employees you have.

What are the chances of needing public liability insurance?

Apart from the situations described above, you may be surprised how often tradespeople need to make a claim. Accidents happen, and even a small incident can quickly result in a court order for substantial damages and compensation.

In addition to the injured party’s lost earnings and medical expenses, there will also be legal costs to consider, which can quickly add up. You will also need to spend time dealing with any legal proceedings, which is also time when you should be working.

If you or your business cannot pay the amount ordered by the court, your business and assets could be at risk.