Public liability insurance covers injury and damage to a third party - but what about injury caused to the tradesman?
Having home insurance is not a legal requirement but it includes an element of protection for third parties i.e. tradesman/postmen etc. What if a gardener is attacked by a customers dog or electrocuted by badly wired garden lighting. How will the gardener get compensation?
Let's face it - we often hire someone to do the jobs that we don't want to do ourselves or that are dangerous. Perhaps it is time for traders and customer alike to get into the habit of showing each other evidence of insurance before work starts.
It is a moral and legal obligation of any business to ensure that they do not mislead their customers. However, it occurred to me that many vetting schemes advertise that their members must have public liability insurance but can only confirm that the insurance is current when they meet the trader each year.
Unlike car insurance, there is no way of ensuring that a trader keeps their insurance and hasn't simply started a policy to get a certificate but cancelled the policy the next day. This has the potential to lull the customer into a false sense of security. Some vetting schemes claim that an approved trader is insured and then go on to list the kind of work that trader offers - tiling, gardening, general building - does the insurance company know they do all this? Many insurance policies are specific to a trade as different trades have varying levels of risk.
In addition, it is the customer who will need to make a claim against the traders insurance and what they receive is generally minus the policy excess. The customer will need to go to the trader for the excess amount and get it from them. The obvious flaw is that a bigger excess makes for a cheaper policy for the trader.
Some social forums suggest that their members adopt the forums customer charter. The charter is effectively a mission statement stating that the trader must have public liability insurance. Sadly, this also has the potential to give the customer a false sense of security and assume that the forum has done the vetting as they were the ones who issued the charter.
Many traders now 'self-certify' by simply carrying around all the information a customer may want to see - such as an insurance certificate. Many insurance brokers offer a 'to whom it may concern' letter stating that the trader has insurance and for what activities. The trader can photo copy this letter and give a copy to each new customer.
All traders should have public liability insurance - it isn't that expensive and is for the protection of the trader as well as the customer. Not having insurance doesn't mean a customer can't sue the trader for compensation but would mean that the trader would have to pay out of their own pocket - something few traders could afford without potentially having to sell their home.
Accidents do and will happen - hiring a qualified tradesmen rather than a 'jack of all trades' will help reduce the risk of accidents.
Labels: public liability insurance