What Do You Need to Know about Public Liability Insurance for Contractors?
As a contractor, you should be familiar with the importance of public liability insurance. After all, it's something that anyone who works in this industry ought to have. But what exactly is public liability insurance, and why is it so important?
What Is Public Liability Insurance?
Public liability insurance (also known as PLI or general liability) is a type of insurance that provides coverage in the event that you are found liable for damages caused to another person or their property while performing your job as a contractor. For example, if you were hired to work on someone's house and accidentally caused damage to their property during the project, your public liability insurance would cover the costs of repairing the damage.
Why Is It Important?
Public liability insurance is an essential form of protection for contractors because it can help cover any costs associated with legal fees or settlements should another party sue you. Even if you are not found liable for the damages, having PLI can help protect your reputation and financial security by covering any court costs incurred during proceedings. Additionally, many clients require contractors to carry some form of PLI before they hire them for jobs — so even if you don't think you need it, it's always a good idea to have this type of coverage just in case.
The Cost of PLI
The cost of public liability insurance varies greatly depending on the type of work you do and how much coverage you need. Generally speaking, basic policies are not that expensive for annual coverage, but they can increase significantly depending on how much risk your business faces. Additionally, most insurers offer discounts if you purchase multiple policies from them at once or sign up for longer-term coverage periods. So, look at this type of insurance alongside workers' compensation, vehicle cover, sickness protection, etc.
What to Bear in Mind
Overall, public liability insurance is an essential part of being a contractor since it protects against potential lawsuits or claims made against your business. It also helps ensure that your clients feel comfortable working with you since they know they won't be held liable if anything goes wrong during the course of your projects. If you want to get more information, tailor coverage for your business and get a quote, reach out to an experienced insurance broker today. They'll help you get the right type of protection, so you'll have one less thing to worry about every day.
For more info about public liability insurance, contact a local company.