Liability insurance, also commonly known as public liability insurance is something that all self-employed persons should consider even as early as when writing their business plan. Liability insurance is highly recommended a necessity for all self employed people whether they are manual, clerical or a professional trade who want to protect their business.

The standard benefits of a public/products liability policy are you are insured for the legal liability for injury, illness or disease to any member of the public, lack of or damage to their house occurring during the period of insurance. For example if you're a plumber and accidentally flood a house you are focusing on, the price of the damage will undoubtedly be covered under your liability policy.

With a public liability insurance policy you normally have three standard options for your level of cover required. The limits of indemnity are �1,000,000, �2,000,000 and �5,000,000. The limit of indemnity you are covered for simply means that the insurance policy will cover any insured peril up to the limit required ie �1 million. Whenever choosing the amount of cover you require you should consider the worthiness of properties that you focus on. For example in the event that you work on a school you ought to have a public liability level of indemnity that's sufficient to rebuild the school if required. In the event that you work on large properties you may need a level of indemnity in excess of �5 million. This can be arranged by purchasing an additional liability policy called an excess layer. This policy is as well as the standard policy and can increase the degree of indemnity to �10,000,000.

Employers liability insurance can be added to a public liability policy. Employer's liability insures you for the legal liability for injury, illness, death disease or nervous shock of any employees caused over insurance. Assuming you have an employee or a labour only sub contractor you're legally required to have employers liability insurance. The minimum level of employers liability insurance is �5,000,000 for legal reasons but most insurance firms have a level of �10 million. An example of an employer's liability claim is if your employee was on a faulty ladder and fell and injured themselves . Employer's liability claims are normally for higher levels than public liability claims.

Under a liability policy also you can have the optional extra cover of tools insurance and goods in transit cover. Tools covers are for loss or damage to hand tools and handheld portable tools owned or hired in by the insured. The level of tool cover is generally from �1,250 to �2,500 with a single article limit of �250 approximately. Tools cover may also be increased to include theft from an unattended vehicle. Great site in transit can even be included for �2,000 for just about any one occurrence.


Finally before purchasing a liability policy factors to consider the insurance company and the insurance professional are regulated by the Financial Services Authority. The Financial Service Authority (FSA) regulates all British insurers and brokers. This regulation would be to protect the client. Also due to this regulation insurers must definitely provide what is referred to as key facts or a policy summary for just about any insurance policy they will have available. They are perfect if you prefer a quick summary of what the policy does and will not provide cover for.