What is third line forcing?
Third line forcing is an illegal process whereby an organisation whom you do business with tries to dictate whom you should purchase your insurance products from.
This can occur when a franchisor or other company in a position of authority has a particular relationship or an agreement with a provider to get a kickback on their own insurance if their franchisees or associates also insure their businesses with that provider.
This process is entirely illegal. No company is allowed to dictate to you or write into your contract that you must be insured by a particular insurance provider.
What they are allowed to do though, is make it a requirement that you do have certain insurance covers before you’re allowed to work with or for them. Franchisors may stipulate as part of your contract that you must have public liability insurance, regardless of whether it is a requirement in your state or for your occupation. Clients that you work with may do the same and this is a perfectly reasonable request; they want to ensure that should an accident occur as a result of your business practices that the issue will be resolved as painlessly as possible and their relationship with clients and suppliers isn’t damaged because of it. However, they can’t stipulate the provider you should use to gain this insurance.
As a business owner, you have the right to shop around, get as many public liability insurance quotes as you like and select an insurer that offers the best bang for your buck.
Choose your own public liability insurance provider
As a business owner or contractor there are certain insurance products that you will want for your business or you may be required to have to work on a particular job or with a particular company. However, you have the right to choose your supplier to get the best deal and cover for your business. Public liability insurance offers you protection against third party injury and damage to third party property. Working in the trades industry, this is an essential cover to have, as if someone is injured or something is damaged as a result of your actions, you will be liable for any associated costs. The cost of hefty medical bills and repairs to property is an expense you simply can’t afford.
So to get the best deal on your public liability insurance get an instant quote online today or contact one of our insurance specialist at All Trades Cover on 1300 826 850.
