Any person who runs a business is exposed to claims from other parties if they cause injury or damage as a result of their business activities. It is therefore essential to obtain a Public Liability Insurance quote as soon as you commence the business. Take out the policy that best suits your needs and keep it in force all the time that you remain trading your business.
Public liability Insurance Quote
At Greenfield Insurance Services, we are often asked “why do I need to get Public Liability Insurance?” The answer is simple; we all have a common law liability towards our fellow man and if as a result of our actions, we cause injury to any other party or cause damage to property, that other party has right in common law to recover their financial loss from the person deemed to be legally responsible for that injury or damage. Legal liability may be created through common law, by negligence, as a result of contravening statute law, such as breach of Health and Safety rules, causing a nuisance or by breach of contract. It is very easy to see how exposed a business is form claims from Third Parties, especially in this litigious age.
This cover is particularly important for partnerships and sole traders as any claim brought against them exposes them to ruin as of course their liability is unlimited and without the benefit of the protection of Public Liability Insurance they would have to fund the defence of any claim and pay any damages awarded from their own pockets, meaning potential bankruptcy in the event of a large claim. Even defending a claim for which you are not legally liable could run into thousands of pounds, which in itself could be crippling.
So what questions are you going to be asked when you apply for a Public Liability Insurance quote?
It is best to be prepared as some of the information required, by necessity is very detailed. This is to ensure that you pay the right price for the policy and that you get a policy that best suits your needs so it is best to be prepared. The questions asked may vary for different occupations but the list below will help you to be prepared:
- Trading status (IE: limited company, sole trader partnership)
- Trading name and trading address
- Business Description and FULL range of activities
- Do you work at height? If so what is the maximum height that you may work at.
- Do you work below ground level, if so at what maximum depth?
- Do you ever use heat (blow torches, welding/cutting equipment etc) away from your own premises.
- Do you use “Labour only” sub-contractors? If so, how many at any one time and what would be your payments to them over a 12 month period.
- Do you use Bona Fide (Supply and fit) sub-contractors? If so how much do you pay them in a year.
- How many direct employees do you have and how much is your wage roll? If you employ non-manual staff you will be asked for separate numbers numbers and wageroll for them.
- Do you hire in plant and machinery and if you do how much would you pay in hiring charges for a 12 month period.
- Have there been any claims or incidences that could give rise to a claim in the last 5 years.
- What limit of indemnity you require. This is often dictated by a customer under the terms of your agreement with them or the terms of membership of a trade association.
Depending upon your occupation, there may be more specific questions asked when you apply for a Public Liability Insurance quote but being armed with the basics listed above will help considerably.
As a word of warning, like all Insurances, it is important to give your Insurer the correct information as failure to do so may mean that you are operating outside the scope of your insurance, so it is best to talk to an Insurance Broker who will help and advise you on what information is required and supply the Public Liability Insurance Quote best suited to your needs. They will also explain the implication of any policy conditions or warranties specific to your business so that you are fully aware of your responsibilities under the Insurance. At Greenfield Insurance Services we take time to ensure that you get the right cover for your protection.
It is also important to remember that if you employ anybody or use “Labour only sub-contractors (who the law treat in the same way as if they were employees) you will also need to arrange Employers Liability Insurance to comply with your legal obligations.
So when you start thinking about that Public Liability insurance Quote, get on and do it now. It could save you an awful lot of problems in the future.
For more information, visit our Greenfield Insurance website.
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