What insurance do you need as a painter and decorator?
If you are working as a house painter, it’s important to set your business up properly. That includes registering for tax, having a good admin system in place and, of course, having the right insurance. This FAQ examines one type of business insurance: public liability.
What is public liability insurance?
Public liability insurance protects you and your business should something you do cause injury to a third party or damage to their property. This could be in respect of a member of the public or a client.
Public liability claims are common. They can cover small incidents, such as spilling paint on a carpet, to larger claims such as someone tripping over your equipment and suffering a serious injury.
Is it a legal requirement to have public liability insurance?
It is not a legal requirement to have public liability insurance, but it is often a contractual requirement. This is especially true when working for large companies or public sector organisations.
Without public liability, you either may not get work with these types of business or may be in breach of contract if you work without it. It is also often a membership requirement of trade associations. Even smaller clients, such as homeowners, can expect you to have public liability.
What happens if I don’t have public liability insurance?
In addition to losing out on work and being in breach of contract, it can damage your reputation.
If you are successfully sued and can’t pay the damages, compensation and legal fees, your business and assets could be at risk. Your insurance is designed to cover these costs.
How much public liability insurance do I need?
This will depend on several factors, including the sort of work you do. However, it is common for small businesses in the construction industry to have public liability insurance cover of between £2 million and £10 million.
How much will it cost?
When calculating your premium, an insurer will consider factors such as:
- how your business is set up
- your claims history
- the amount of cover you need.
If you have a small company with a couple of employees, your insurance may cost a little more than if you are a sole trader.
Is there any other insurance I need?
If you have an employee or apprentice, or use the services of friends and volunteers, you are legally obliged to have employer’s liability insurance. You should also consider insuring your tools.
Should you provide professional advice as part of what you do, you may also need to consider professional indemnity insurance.
If you are not sure about what other insurance you need, speak to an insurance company with experience of providing cover for your industry.
Working as a decorator has its advantages. It’s easy to set yourself up in business and can allow for a degree of variety when choosing the sorts of jobs you want to do. However, you must make sure you are properly set up. This includes having the right insurance.
What is public liability insurance?
Public liability insurance is a type of insurance that is designed to protect you and your decorating business if something you do causes damage to property or injury to someone.
For example, if you spill a pot of paint on a client’s carpet, or the client trips over equipment you’ve left attended and causes themselves an injury, your public liability insurance will cover any subsequent claim for compensation.
Do decorators need public liability insurance?
If you come into contact with the public, or with clients and their property, then you should consider public liability insurance. It is not a legal requirement, but most large organisations may insist you have it as a term of your contract.
In addition, you may find that your trade association requires you to have public liability as a condition of membership. Clients will also find it reassuring to know you are properly insured.
In essence, having public liability is an important and easy way to reinforce the reputation of your business
Why is public liability insurance important?
However careful you are, accidents happen. Unfortunately, even a small incident can amount to a claim for damages against you for thousands of pounds.
Imagine your client trips over a pot of paint you are using and breaks their ankle. If you are found to be at fault by the courts, you will likely have to pay:
- damages for new carpets
- the client’s lost earnings
- their expenses getting to and from hospital
- legal fees
Before you know it, you’re facing a court order to pay a large sum of money. If you cannot pay, your business and assets may be at risk.
Does it matter if I operate on a self-employed basis?
It doesn’t matter whether you’re a self-employed sub-contractor or run a limited company or partnership; the insurance requirements are the same. The only difference may be that your insurance costs a little less if you are a sole trader.
How much public liability insurance cover does a decorator need?
This will depend on:
- the type of work you do
- the projects you work on
- your claims history.
It is common for public liability cover to start at £2 million, although you may need less.
If you are working as a house painter, it’s important to set your business up properly. That includes registering for tax, having a good admin system in place and, of course, having the right insurance. This FAQ examines one type of business insurance: public liability.
What is public liability insurance?
Public liability insurance protects you and your business should something you do cause injury to a third party or damage to their property. This could be in respect of a member of the public or a client.
Public liability claims are common. They can cover small incidents, such as spilling paint on a carpet, to larger claims such as someone tripping over your equipment and suffering a serious injury.
Is it a legal requirement to have public liability insurance?
It is not a legal requirement to have public liability insurance, but it is often a contractual requirement. This is especially true when working for large companies or public sector organisations.
Without public liability, you either may not get work with these types of business or may be in breach of contract if you work without it. It is also often a membership requirement of trade associations. Even smaller clients, such as homeowners, can expect you to have public liability.
What happens if I don’t have public liability insurance?
In addition to losing out on work and being in breach of contract, it can damage your reputation.
If you are successfully sued and can’t pay the damages, compensation and legal fees, your business and assets could be at risk. Your insurance is designed to cover these costs.
How much public liability insurance do I need?
This will depend on several factors, including the sort of work you do. However, it is common for small businesses in the construction industry to have public liability insurance cover of between £2 million and £10 million.
How much will it cost?
When calculating your premium, an insurer will consider factors such as:
- how your business is set up
- your claims history
- the amount of cover you need.
If you have a small company with a couple of employees, your insurance may cost a little more than if you are a sole trader.
Is there any other insurance I need?
If you have an employee or apprentice, or use the services of friends and volunteers, you are legally obliged to have employer’s liability insurance. You should also consider insuring your tools.
Should you provide professional advice as part of what you do, you may also need to consider professional indemnity insurance.
If you are not sure about what other insurance you need, speak to an insurance company with experience of providing cover for your industry.