Sole traders should protect themselves against a variety of possible issues that could adversely affect their business. As a tradesperson, sole traders are responsible for any injuries that may occur to clients or members of the public when they are on their property. For these situations, it is imperative that they have public liability insurance coverage.
When obtaining public liability insurance coverage, there are several aspects of coverage to consider. Public liability insurance will pay for any damages that may either be awarded by a court, or agreed upon through negotiations. These kinds of payments can be for rather high amounts these days. Having public liability insurance from a company like provides protection to your business from these payments.
Public liability insurance provides other sorts of coverage as well. As a sole trader, if you find yourself in a situation where a client or member of the public is making a claim against you, you may need to secure the services of a lawyer. The fees from legal services can be quite expensive; this is another aspect of public liability insurance, which will also help sole traders pay for their legal representation.
If the claimant was physically harmed, they may need to seek out medical services. If they file a claim against a sole trader and it is found that the trader was at fault, they will probably also be liable for medical expenses associated with the injury. These expenses could simply be a doctor visit or perhaps more involved such as an emergency room visit, brief hospital stay, ambulance costs and more. Without public liability insurance, the sole trader would have to pay for these expenses out of their own pocket. This can be quite damaging to a business; public liability insurance is designed to protect the livelihood of the sole trader.