As a tradesman, you’re sure to be met with a whole number of risks. Such risks can be anything from a customer tripping and falling over your tools and suing you for injury, or a storm damaging your half-finished construction project. Because of this, there are several insurance policies relevant to tradesmen.
Public liability insurance
Public liability insurance should be the cornerstone of your tradesman insurance policy. This can cover your business if sued for causing injury from a customer tripping over your tools, to negligence causing damage to a property. In such instances, public liability insurance would cover any legal fees and compensation costs up to the limit of your policy. While the majority of insurers offer between £1 million and £5 million of public liability insurance, it’s wise to check your contracts before you commit to a job.
Such insurance is necessary for all businesses that require regular contact with members of the public. Public liability policies are popular not only with tradesmen, but also shop and salon owners. Although it isn’t a legal requirement, many of your customers are likely to insist you’re covered for public liability before you begin work. Similarly, contracts with the council or local government will require proof of public liability insurance, with a certain level of cover, should you look to do business with them.
Employers’ liability insurance
If you employ anyone, whether it’s a contractor, casual worker or temporary staff member, you are generally required by law to have employer’s liability insurance. Should you fail to have this in place, you can face a large fine.
This insurance can cover compensation claims from an employee, if they suffer a work-related injury or illness. For example, if an employee was injured onsite, due to damaged equipment, or fall ill as a result of exposure to any chemical or toxic material.
Tools and equipment insurance
This insurance policy is rather self-explanatory – it will cover your tools, should they be lost, damaged or stolen. It’s important to check any documents relating to tools and equipment insurance thoroughly, as this will ensure you understand when and where your tools would be covered. It will also inform you of security measures you have in place.
Plant and machinery insurance
As well as your tools, it’s advisable to get insurance that covers any machinery you hire or own. Plant and machinery insurance would cover costs if the machinery was lost, damaged or stolen. Again, you should check the policy terms and conditions for specifics.
Contract works insurance
Contract works insurance provides cover for construction that is being carried out on a building site. It would pay to repair or even redo work that has been damaged or destroyed due to vandalism, fire, flood or storm. Costs covered would include the cost of tools, materials and labour.
Other insurance policies
There are a range of other types of insurance you may wish to cover. Other policies include accident insurance, business buildings insurance, business interruption and legal expenses. Companies such as Tradesmen Saver offer policies tailored to individuals, including these additional, more niche types of cover, where required.