Employers’ Liability vs Public Liability Insurance: What's The Difference?

Here at Rhino, we understand that running your own business in any trade can be a tough task, especially if you have employees or sub-contractors working for you. From payslips to HR, dealing with additional workers can cause additional hassle in making your business work (least of all deciding on who’s making the next round of brews!).

Now in classic Rhino fashion, for anyone dealing with employees we want to say, ‘there’s an insurance policy for that!’ in the form of Employers Liability Insurance. If something were to ever go wrong at work, whether this is an accident, theft, or any legal quarrel, you want to feel confident knowing that you, your business, and your employees are protected. That’s when Rhino Trade Insurance can make things easy for you. We offer Employers Liability Insurance for any business that hires additional tradesmen and want to make the ins and outs of the policy as simple as we can.

Well, there you have it. Freddie vs Jason, King Kong vs Godzilla, Batman vs Superman. All important things deserve to be pitted against each other, and at Rhino Trade Insurance, it doesn’t get more important than Public & Employers Liability Insurance. We want every tradesman out there to understand the difference between employers’ liability and public liability cover, so have covered it off below!

Public vs. Employers Liability Insurance – A Quick Q&A

Q: So, What’s the Difference?

A: Although employers’ liability cover is a common add on to public liability insurance, the policies themselves, and what they cover, are rather different. Understanding insurance and the cover you hold is vital in ensuring that you are fully aware of the risks of working and what level of safety net your business has. There’s no point trying to make a claim on your insurance without first understanding what you are covered for. Working as a tradesman means accidents can happen and possessing this insurance can provide you with peace of mind that your business is covered.

Q: What is Public Liability Insurance?

A: Public Liability Insurance guards you and the business you own if a member of the public (a customer, visitor etc.) sustains an injury or death as an accidental result of the work carried out by your business. It also covers claims arising as a result of accidental damage made to third party property. The policy is considered ‘business critical’ for self-employed tradesmen and includes legal costs connected with any claim and/or damages owed by your business (up to your chosen level of cover). Essentially, if you accidentally break someone’s leg or break down their wall, public liability cover will cover the cost of the subsequent claim.

Q: What is Employers’ Liability Insurance?

A: Employers Liability Insurance is a common add on to Public Liability cover and is a requirement for anyone who employs staff. Employers Liability Insurance covers the employer if their employee(s) launches a claim against them and is vital in operating safely and compliantly. If you

have any employees or sub-contractors / temporary workers working for you, you will need employer’s liability insurance. It is a legal requirement for any business that has employees to take out the cover and is a very common add-on policy to public liability cover. This policy will cover the policyholder for claims arising out of or in connection with injury or death of an employee whilst completing work for your business. That means that if your employee accidentally breaks their leg whilst on the job and it wasn’t their fault and they were to make a claim against you, your business will be covered!

Q: Do I need Public & Employers Liability Insurance?

A: Simply put, if you are a self-employed tradesman then in order to be covered against common accident, death, or damage claims, you will be required to hold Public Liability Insurance in place, and if you have an employee, whether permanent, part-time, or temporary, you are legally obliged to hold employer’s liability insurance.

Not meaning to hammer a point home, but in brief public liability cover will secure your business against the cost of a third party (individual or corporate) bringing legal action against you for injury, death or property damage caused by you or any other manual workers you cover. This policy will cover the legal costs and compensation where required, up to the limit of indemnity chosen, and is the most common form of tradesman insurance.

Employers Liability Insurance is perfect for employers and can often be a contractual necessity when working on certain commercial contracts. Although the insurance is only relevant to those with employees, it’s an important one to understand as it can be a legal requirement for a business to have the cover in place.

Q: Still have questions?

A: If you are still none the wiser as to whether or not your business needs public & employers liability insurance, then do not panic. Our team of trained insurance professionals would love to hear from you and can discuss the benefits and advantages of having each level of cover in place. Our staff members have been working in the insurance industry for decades and many of us have been with Rhino Trade Insurance since the very beginning. We invite anyone to contact Rhino for support and guidance, we don’t bite!