For many contractors, public liability cover is considered a vital business insurance cover that they are aware, that even though not usually a legal necessity, is an essential prerequisite 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 times an ever-increasing number of businesses are placed in the situation of having to buy public liability cover so as to meet the pre-contract needs of main contractors or employers, whether or not the contractor themselves recognises the need or indeed has an understanding of what the policy is intended for and how it protects the contractor and other parties..
At its centre the public liability insurance policy is a simple risk transfer mechanism whereby a contractor transfers certain financial risks associated with trading to an insurance company who is much better positioned financially and technically to handle those risks and losses that may arise from them.
As with all businesses, contractors confront a range of financial risks everyday in the regular course of trading, together with the potential for action being taken against them by 3rd parties for personal injuries or property damage attributable to the business in the execution of their daily business.
It is these financial risks that the third party liability insurance policy id intended to address and transfer these economic risks and consequences of these 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 costs apply to claims made against the insured in respect of the coverage irrespective of the policyholder's eventual legal responsibility or not for that claim. These legal defence costs may be a considerable sum of money even for a very routine and spurious claim against the policyholder and many insureds regard this coverage as being as significant an integral part of the insurance as the cover in respect of awards made against them.
The price of third party liability coverage is of course extremely reliant upon the business activities that are undertaken by the insured, where these are undertaken and just how much work is actually undertaken, but in fact the price of an effective public liability insurance policy is genuinely quite low when compared with the cover and protection 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 times an ever-increasing number of businesses are placed in the situation of having to buy public liability cover so as to meet the pre-contract needs of main contractors or employers, whether or not the contractor themselves recognises the need or indeed has an understanding of what the policy is intended for and how it protects the contractor and other parties..
At its centre the public liability insurance policy is a simple risk transfer mechanism whereby a contractor transfers certain financial risks associated with trading to an insurance company who is much better positioned financially and technically to handle those risks and losses that may arise from them.
As with all businesses, contractors confront a range of financial risks everyday in the regular course of trading, together with the potential for action being taken against them by 3rd parties for personal injuries or property damage attributable to the business in the execution of their daily business.
It is these financial risks that the third party liability insurance policy id intended to address and transfer these economic risks and consequences of these 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 costs apply to claims made against the insured in respect of the coverage irrespective of the policyholder's eventual legal responsibility or not for that claim. These legal defence costs may be a considerable sum of money even for a very routine and spurious claim against the policyholder and many insureds regard this coverage as being as significant an integral part of the insurance as the cover in respect of awards made against them.
The price of third party liability coverage is of course extremely reliant upon the business activities that are undertaken by the insured, where these are undertaken and just how much work is actually undertaken, but in fact the price of an effective public liability insurance policy is genuinely quite low when compared with the cover and protection 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 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 new start businesses.
