To many contractors, public liability insurance is considered an important trade insurance cover that they are conscious, that whilst not generally a legal requirement, is a necessary requirement for working in the modern environment.
Some contractors remain unaware with the need for such insurance and many other buyers purchase the cover but may not have a clear comprehension of what the cover is for, merely that it is considered shrewd to arrange public liability insurance.
In recent years an increasing number of contractors are placed in the situation of having to buy third party liability cover in order to meet the pre-contract needs of principal contractors or employers, whether or not the contractor themselves recognises the need or indeed has an appreciation of what the coverage is for and how it protects the contractor and additional parties..
At its centre the public liability insurance cover is a simple risk transfer means whereby a contractor transfers certain financial risks related to trading to an insurance company who is much better positioned financially and technically to handle those risks and losses that could arise from them.
As with all businesses, contractors face a variety of financial risks each day in the normal course of business, together with the potential for action being taken against them by 3rd parties for personal injury or property damage caused by the contractor in the carrying out of the daily business.
It is these risks that the public liability insurance cover id designed to address and transfer these economic risks and consequences of those risks to the insurance company or underwriter.
The public liability insurance policy provides cover to the insured in respect of legal action made against them by 3rd parties for personal injury and property damage allegedly caused by the insured during the course of their business. Perhaps significantly the policy also offers insurance in respect of the value of mounting a legal defence to any allegations made against the policyholder in respect of such claims.
The legal defence expenses apply to legal action made against the policyholder in respect of the coverage regardless of the insured's eventual legal responsibility or otherwise for the claim. These legal defence costs can be a substantial sum of money even for a very routine and spurious claim against the insured and many policyholders view this coverage as being as vital a part of the policy as the coverage in respect of awards made against them.
The price of public liability cover is naturally extremely dependent upon the trading activities which are undertaken by the insured, where these are undertaken and just how much work is actually undertaken, but in reality the cost of an effective public liability insurance protection is genuinely quite low in comparison with the cover and security it provides the business.
Purchasing third party liability cover is a very simple procedure. There are various on line quotation services, frequently provided by specialist business insurance agents where it is possible to obtain immediate on line quotations and cover for all kinds of contracting trades if these are provided by a specialist business and liability cover broker, you will also have access to advice services in respect of of your liability insurance and other business coverage requirements that you have.
Some contractors remain unaware with the need for such insurance and many other buyers purchase the cover but may not have a clear comprehension of what the cover is for, merely that it is considered shrewd to arrange public liability insurance.
In recent years an increasing number of contractors are placed in the situation of having to buy third party liability cover in order to meet the pre-contract needs of principal contractors or employers, whether or not the contractor themselves recognises the need or indeed has an appreciation of what the coverage is for and how it protects the contractor and additional parties..
At its centre the public liability insurance cover is a simple risk transfer means whereby a contractor transfers certain financial risks related to trading to an insurance company who is much better positioned financially and technically to handle those risks and losses that could arise from them.
As with all businesses, contractors face a variety of financial risks each day in the normal course of business, together with the potential for action being taken against them by 3rd parties for personal injury or property damage caused by the contractor in the carrying out of the daily business.
It is these risks that the public liability insurance cover id designed to address and transfer these economic risks and consequences of those risks to the insurance company or underwriter.
The public liability insurance policy provides cover to the insured in respect of legal action made against them by 3rd parties for personal injury and property damage allegedly caused by the insured during the course of their business. Perhaps significantly the policy also offers insurance in respect of the value of mounting a legal defence to any allegations made against the policyholder in respect of such claims.
The legal defence expenses apply to legal action made against the policyholder in respect of the coverage regardless of the insured's eventual legal responsibility or otherwise for the claim. These legal defence costs can be a substantial sum of money even for a very routine and spurious claim against the insured and many policyholders view this coverage as being as vital a part of the policy as the coverage in respect of awards made against them.
The price of public liability cover is naturally extremely dependent upon the trading activities which are undertaken by the insured, where these are undertaken and just how much work is actually undertaken, but in reality the cost of an effective public liability insurance protection is genuinely quite low in comparison with the cover and security it provides the business.
Purchasing third party liability cover is a very simple procedure. There are various on line quotation services, frequently provided by specialist business insurance agents where it is possible to obtain immediate on line quotations and cover for all kinds of contracting trades if these are provided by a specialist business and liability cover broker, you will also have access to advice services in respect of of your liability insurance and other business coverage requirements that you have.
About the Author:
Blackfriars Insurance is a specialist liability insurance broker providing instant access to very competitive quotes and cover for public liability insurance for a wide range of trades and professions for both well established and start-up businesseses.
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