Do Self-Employed People Need Public Liability Insurance?
You may wonder if you need public liability insurance as a self-employed individual. It's a common question, especially since many people don't fully understand public liability insurance and how it works, and as a result, may overlook or underestimate its importance. But the truth is that public liability insurance can provide essential protection to self-employed people who interact with clients, customers or members of the public in some way. What do you need to know about the risks and whether you need this type of insurance or not?
Define the Coverage
Public liability is a type of business insurance that protects against claims made by third parties who may have to deal with personal injury or property damage due to your business activities. It can cover the costs of legal fees, compensation and other expenses associated with the claims. For example, if a self-employed electrician was working on a client's property and accidentally caused a fire that damaged the property, the client could make a claim against the electrician's public liability insurance to cover the costs of the damage. Without public liability insurance, the self-employed electrician would have to pay for the damages out of their own pocket, which could be financially devastating.
Consider the Risk
Self-employed individuals may need public liability insurance because they're at risk of claims made against them by clients, customers or members of the public. When you interact with others in any way, whether in person, by phone or online, you're potentially liable for any damage or injury that occurs due to your business activities. For example, if you're a freelance writer and a client trips over a cable when coming to your home office, injuring themselves, they could make a claim against your public liability insurance to cover the costs of their medical bills and any other expenses associated with the injury.
Add Peace of Mind
Having public liability insurance can also give self-employed individuals peace of mind. It's impossible to predict when accidents or mishaps may occur, and it's better to be safe than sorry. Public liability insurance can provide you with the confidence that you're covered if something unexpected happens. Plus, if you have public liability insurance, you'll look more professional, and clients may be more likely to choose you over a competitor who doesn't have insurance.
Time to Be Selective
It's important to note that not all self-employed individuals will need public liability insurance. If you work in an office-based role and don't interact with clients or members of the public in person or online, you may not require public liability insurance.
What to Remember
In conclusion, public liability insurance is an essential form of protection for self-employed individuals who interact with clients, customers or members of the public. If you're unsure whether you need it, it's best to speak to an insurance broker who can provide tailored advice based on your individual circumstances.
For more information on public liability insurance, contact a professional near you.