As a self employed person operating your own personal business you confront risks on a daily basis that aren't encountered by those employed by other people. Whether you are actually a sole trader operating under your own personal name or actually an employee of your own limited company, you're personally exposed to a wide range of legal liabilities that could fall upon you in the normal course of trading.
For many people starting in business, they'll think that the spectre of legal action against them just isn't a realistic risk to their business and its success, except in this ever increasingly litigious society, where everybody is seeking somebody to blame, incidents do happen and when they do they can be very expensive to resolve.
As a business and as an individual you are responsible for the actions of yourself and your business and if you cause property damage or personal injuries to third parties, you may be sued in respect of your legal liability in respect of those injuries or damage.
3rd party liability insurance or public liability insurance is the class of insurance that indemnifies you against claims against you in respect of the legal liability to third parties in respect of personal injuries and property damage.
The marketplace for third party liability insurance for the self employed is such a large and highly developed one that the expression self employed liability insurance has become used as if this were a separate type of insurance. In actual fact it isn't, it is a public liability insurance policy albeit with a variety of available features from various suppliers.
Whilst public liability insurance is not a legal requirement for businesses in all but a very small number of trades and professions, it is an essential business insurance protection that can avert financial disaster for the self employed.
Under the self employed public liability coverage you will need to choose a limit of indemnity; this amount is the insurance company's maximum liability under the policy and customary limits in the United Kingdom are 1M, 2M and 5m although there are increasing calls for higher limits.
The limit your choose will very much depend on the business you are engaged in and any contractual requirements you may have placed upon you. Clearly the higher the limit, the more costly the insurance will be although this is not a proportional increase. Typically a 2M limit may be 20% more expensive than a 1M limit.
One of the key features of the policy is that it includes your legal defence expenses, which for many can be considered as a very powerful aspect of the cover. If someone makes an allegation against you regarding your possible responsibility for a potential loss, then your insurance company will respond and handle the defence of the claims - regardless of whether you are liable or not.
Legal defence expenditure is usually extremely costly, even if you are successful in the defence and may place your business and you in a hazardous financial position.
One essential aspect in the arrangement of your self employed liability insurance is to ensure that your business description in the policy is correct and adequately conveys the business activities in which you are engaged. it is for this business description that the insurer has accepted the responsibility under the policy and work outside the normal understanding of that occupation will not be covered.
For most self employed people the price of sufficient liability cover protection is comparatively little and it is a very cost effective method of managing the risks to your business.
There are many providers involved in the provision of liability insurance and instant quotes are available widely on the internet. A specialist liability insurance broker will usually be able to offer you a range of quotes from insurers to meet your requirements.
For many people starting in business, they'll think that the spectre of legal action against them just isn't a realistic risk to their business and its success, except in this ever increasingly litigious society, where everybody is seeking somebody to blame, incidents do happen and when they do they can be very expensive to resolve.
As a business and as an individual you are responsible for the actions of yourself and your business and if you cause property damage or personal injuries to third parties, you may be sued in respect of your legal liability in respect of those injuries or damage.
3rd party liability insurance or public liability insurance is the class of insurance that indemnifies you against claims against you in respect of the legal liability to third parties in respect of personal injuries and property damage.
The marketplace for third party liability insurance for the self employed is such a large and highly developed one that the expression self employed liability insurance has become used as if this were a separate type of insurance. In actual fact it isn't, it is a public liability insurance policy albeit with a variety of available features from various suppliers.
Whilst public liability insurance is not a legal requirement for businesses in all but a very small number of trades and professions, it is an essential business insurance protection that can avert financial disaster for the self employed.
Under the self employed public liability coverage you will need to choose a limit of indemnity; this amount is the insurance company's maximum liability under the policy and customary limits in the United Kingdom are 1M, 2M and 5m although there are increasing calls for higher limits.
The limit your choose will very much depend on the business you are engaged in and any contractual requirements you may have placed upon you. Clearly the higher the limit, the more costly the insurance will be although this is not a proportional increase. Typically a 2M limit may be 20% more expensive than a 1M limit.
One of the key features of the policy is that it includes your legal defence expenses, which for many can be considered as a very powerful aspect of the cover. If someone makes an allegation against you regarding your possible responsibility for a potential loss, then your insurance company will respond and handle the defence of the claims - regardless of whether you are liable or not.
Legal defence expenditure is usually extremely costly, even if you are successful in the defence and may place your business and you in a hazardous financial position.
One essential aspect in the arrangement of your self employed liability insurance is to ensure that your business description in the policy is correct and adequately conveys the business activities in which you are engaged. it is for this business description that the insurer has accepted the responsibility under the policy and work outside the normal understanding of that occupation will not be covered.
For most self employed people the price of sufficient liability cover protection is comparatively little and it is a very cost effective method of managing the risks to your business.
There are many providers involved in the provision of liability insurance and instant quotes are available widely on the internet. A specialist liability insurance broker will usually be able to offer you a range of quotes from insurers to meet your requirements.
About the Author:
Blackfriars Insurance is a dedicated professional liability insurance broker providing instant access to very competitive quotes and cover for public liability insurance for a wide range of trades and occupations for both established and start-up businesses.
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