Written by Michael Foote, Insurance Expert
Customer Claims Are a Real Risk
In your trade, even when the job goes smoothly, a customer could still come back weeks later saying something has gone wrong. Maybe there’s a leak, a crack in the wall, or something didn’t pass inspection. In some cases, they might demand a refund or threaten legal action.
It only takes one unhappy client to cause serious disruption to your business. That’s why having the right business insurance in place matters.
Common Situations That Lead to Claims
Even experienced tradesmen face issues that can result in a claim. These might include:
- A water pipe bursts after a plumbing job
- Electrical work causes a short circuit
- A ladder or tool falls and injures someone, for example a client, a member of the public or your team
- A wall collapses or cracks after construction
- Poor finish or incomplete work leads to complaints
Whether or not you agree with the claim, you may still need to defend yourself and cover any damages.
What Public Liability Insurance Covers
Public liability insurance can protect you if a third party suffers injury or property damage because of your work. It helps cover:
- Legal defence costs
- Compensation payments
- Property repairs caused by your work
- Medical costs for injured third parties
If you do not have this cover, you could be paying these costs out of your own pocket.
What About Workmanship Disputes?
Public liability does not always cover disputes over quality or contract terms. For example, if a client claims you didn’t follow plans or missed deadlines, this might be classed as a professional or contractual issue.
Some policies include add-ons for legal expenses or professional indemnity to help in these situations. Always check what your policy includes.
How to Respond If a Client Complains
If a client threatens legal action or demands compensation, stay calm. Document the issue and your response, and notify your insurer right away. Do not admit fault or try to settle privately unless you’ve spoken to your broker.
Good insurers will guide you through the process and handle communication on your behalf.
Protect Yourself Before It Happens
Customer claims can happen even when you’ve done everything right. Having the right policy in place lets you keep trading without fear of financial damage.
If you work in any manual trade, visit our Tradesmen Insurance page to compare quotes and get the protection your business needs through one of our experienced insurance specialists.