Tradies urged to protect themselves as claims climb 10%

Tradespeople are being urged to check they’re fully insured against claims from customers and the public.

The warning comes from the insurance experts at Quotezone.co.uk who say without adequate insurance cover, tradespeople could run the risk of financial ruin.

In the UK last year, there were 58,933 public liability claims registered to the Compensation Recovery Unit (CRU) – a 10% increase from the previous year, 2022-23.*

The CRU recovered nearly £8 million in public liability claims, up 33% from £5.9 million the year before.

While it’s not a legal requirement, they say all tradespeople should have public liability insurance in place to protect them against claims.

A recent survey by Quotezone revealed only a third (33%) of Britons currently know they could claim against a tradesperson for damages to themselves or their property. 

Given the surge in claims and compensations over the last 12 months, trade workers need to future proof their business and protect themselves.

Public liability insurance covers the cost of compensation and legal fees if your business is sued for injury or damage to a third party. 

It includes personal injuries and loss or damage to a property, including the cost of replacing damaged property. 

It could cover something relatively minor such as paint being spilt on a carpet or punctures caused by discarded nails, up to extreme cases such as death.

Some customers may also insist tradespeople have public liability insurance in place. Without it, they could be in breach of contract or may not get a contract at all.

Greg Wilson, CEO at Quotezone.co.uk said: “Public liability insurance is crucial for tradespeople across the UK. Not only does it safeguard your business, it also recognises the challenges faced by tradespeople and the potential claims they could come up against.

“They can range from minor issues – damage to a possession, spilt paint or damage to a driveway, to something much more serious involving personal injury. Without adequate insurance, the financial burden can be overwhelming.

“Public liability insurance isn’t required by law, but investing in it ensures peace of mind and increases professional credibility.

“Having the right insurance is not just about managing risk. It’s also about demonstrating responsibility and commitment to your customers and members of the public.”

Key reasons why tradespeople should take out public liability insurance:

Protection Against Legal Claims

Public liability insurance protects tradespeople from financial losses resulting from legal claims made by clients or third parties.

Peace of Mind

Knowing that you’re covered in the event of an accident or mishap allows tradespeople to focus on their work without the constant worry of potential financial repercussions. This peace of mind can enhance job performance and reduce stress.

Client Confidence

Having this insurance in place gives credibility and reassures customers that you are a professional who takes responsibility seriously. 

Compliance with Contracts

Many contracts and projects require proof of public liability insurance before work starts. Being covered ensures you can meet these requirements and avoid losing out on potential business opportunities.

Coverage for Property Damage

Public liability insurance covers personal injury and damage to property that might happen during the course of your work. This could include accidental damage to a client’s home or workspace, which can be expensive to repair.

Financial Protection

Without insurance, tradespeople might have to cover legal claims and compensation costs out of pocket.

Businesses should check with their regulator and professional body to ensure all obligations are met and adequate protection is applied – Quotezone can help business owners compare and find savings on business insurance and all sorts of related products such as public liability insurance for builders.  

Reference:

*Compensation Recovery Unit performance data – GOV.UK (www.gov.uk)

​ SURVEY:

Quotezone.co.uk’s findings are based on a randomised survey of 1,000 respondents across the UK during September 2024, which represents a margin of error of approximately 5% at a 95% confidence level.