Public Liability Insurance Misconceptions

A common misconception is that Public Liability Insurance includes cover for damage to the specific object being worked upon. So for example if a flooring contractor were to damage the floor that they are laying, this would not be covered. The reason for this is that insurers class this as defective or incorrect workmanship. Something that is not readily insurable against.

Using the same example, if the flooring contractor were to damage the walls whilst laying the flooring, it would be covered. The same can be said if the tradesman unintentionally caused somebody to trip or an injury to a third party.

Another belief among some trades people is that doubling your Public Liability Insurance limit from £1,000,000 to £2,000,000, will also double the premium. This is rarely the case. Insurers are aware that a claim of this size is highly unlikely and that most contractors require higher limits for either contractual reasons, or for membership to regulatory bodies. Some potential clients such as local authorities require limits as high as £5,000,000 or even £10,000,000.

If you are unsure of any areas of your policy then you should always get in touch with your broker as it is important to understand exactly what you are and are not covered for.

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