Who needs tradesman insurance?
Insurance for tradesmen isn’t just for large firms. Whether you’re a sole trader, a contractor, or manage a small team, tradesman insurance is essential. It’s particularly important for anyone who works in environments where accidents, property damage, or legal disputes could arise. The trades that are often required to have tradesman insurance are:
- Builders
- Plumbers
- Electricians
- Carpenters
- Painters & decorators
- Gardeners
- General contractors
What does tradesman insurance cover?
The exact extent of your tradesman insurance will depend on the covers you decide to include. As a tradesperson, you are probably going to need public liability insurance but you may also think about the protection of your tools, stock, hired equipment, ongoing projects and the people working with you.
Public liability insurance for tradesmen
One of the most essential covers is public liability insurance for tradesmen. This protects you if a member of the public is injured or their property is damaged due to your work.
For example, if you’re an electrician and a customer trips over your equipment, their injury could be blamed on you and your tradesman public liability insurance is desgined to cover this type of claim.
Public liability insurance is particularly crucial for self-employed tradesmen, as, unlike a limited company, you personally will bear full responsibility for any claims made against you.
Professional indemnity insurance for tradesmen
If your services include an element of advice or design, professional indemnity insurance for tradesmen is a must. This cover protects you if a client claims your advice or design caused them financial loss. It’s particularly relevant for trades like plumbing, engineering, or construction, where mistakes can have costly consequences.
Other insurance tradesmen need
Beyond public liability and professional indemnity, there are other types of insurance for tradesmen worth considering:
Employers’ liability
If you employ staff, even on a casual basis, employers’ liability insurance is a legal requirement in the UK. It protects your business from claims made by employees who are injured or fall ill due to their work.
Tools & materials
Your trade tools are essential. This cover protects them against theft, loss, or damage, ensuring you can get back to work quickly. It can also include stock and materials stored on-site or in transit.
Owned & hired in plant
If you rented machinery or equipment, hired in plant insurance covers it against theft or damage. This ensures you’re not left footing a hefty bill if something happens to the hired equipment.
Contract works
Contract works insurance protects ongoing projects against damage or unforeseen incidents. For example, if a partially built structure is damaged by fire or vandalism, this cover ensures the costs of redoing the work are taken care of.
