Public liability insurance for a sole trader is usually an optional feature of a full-service insurance policy for traders. However it is an important feature to consider if you are looking at protecting your business against claims from clients or customers. In many cases these claims can be costly.
There is no such thing as public liability insurance that is suitable for every company. It depends on the level of risk that your business poses for others. This may include the type of products or services that you offer, and the nature of the trading relationship that you have with your client. The insurance should cover you for any damage that is sustained by goods or services that you provide for a client.
There are many circumstances where the sole trader public liability insurance can help to protect your business. This can be for example in the case of breach of contract claims. You may also need it if there is an accident in your premises that causes injury to a person.
However for a full cover insurance policy for traders there is no public liability insurance required. You will also find that this type of insurance does not normally come with separate cover for goods that you provide for clients, and that they pay if they claim against you.
There are different types of public liability insurance available to a trader and it is important that you choose the right one. You should only take out one type of insurance policy for yourself, as this can make it difficult to deal with claims, especially if you have a large number of customers or clients.
By keeping these things in mind, you should be able to determine whether you need public liability insurance for a sole trader. However, remember that if you are planning to trade in other countries that you may need additional cover. This is particularly true if your products or services are not covered in the country you are operating in.
You will also find that public liability insurance does not cover you against damage that happens in a legal action that may occur against you. This can include fraud, theft, or even breach of contract claims. You will therefore need to check that you are covered by separate legal cover for these issues. In most cases you will have to take out another type of insurance policy which will cover you for this specific claim.
The fact that public liability insurance is not compulsory is often a problem for those who are new to trading. However the cost of having this type of insurance should not be more than you would have to pay for the level of cover that you require.
There is nothing wrong with taking out public insurance for a sole trader. As long as you have chosen the right policy it can be worthwhile if it helps to protect your business and your finances in the case of a claim or injury.