To operate safely and legally in the UK as a tradesman, the correct insurance will be required. Tradesman insurance incorporates a number of policies and protects businesses from possible risks, allowing them to work safely without being exposed to personal liability from insurance claims (read more about tradesman insurance here.)
Having this kind of insurance will be needed whether the tradesman operates as a self-employed sole trader or a fully-fledged company with employees. Tradesman insurance, or business insurance, is designed to protect policyholders against claims due to accidents, loss or injury to persons or property.
Policies of this kind are made up of a number of other policies that can be included or omitted as required. Depending on the needs of the business, the insurance can be structured to fit specific needs. Combining numerous types of coverage under one policy means only one monthly payment is required and only 1 yearly renewal to track, making a tradesman policy easy to manage.
All of the included policies are designed to offer tradesmen protection from events like accidents, injury or theft. In all cases, the insurance obtained will shield tradesmen from financial liability in connection with claims, covering expenses associated with defending the lawsuit leveraged against them.
These expenses can add up quickly to large sums exceeding tens of thousands of pounds, and tradesman’s insurance can prevent tradesmen from having to pay out of pocket for items such as:
- Legal fees
- Medical expenses
- Compensation for damages
- Court costs
- Settlement payments
Defending a claim legally can be costly, so having adequate coverage means that tradesmen can operate safely insured from the majority of risks and enjoy peace of mind. Different insurance policy limits will be required depending on things like the business structure, industry and the type of work performed.
What does tradesman insurance cover?
For tradesmen that need insurance, there are several policies that should be considered. The type of business, company structure and type of work will all affect the amount of insurance needed and the coverage that should be included in the policy. Specialised cover for risks and hazards associated with specific types of work may also be purchased.
Tradesmen insurance can include various coverage and can contain policies for many different liability types.
Employers’ liability
Will need to be purchased by any tradesmen that hire employees. Claims may be brought by workers who are injured or become ill at the workplace. If the employer has been found to be negligent or lacking in terms of providing a safe working environment, then the employee can pursue a financial claim. Employers’ liability will protect against legal fees and settlement payments associated with such claims and is required by law.
Public liability
Members of the public can bring claims for accidents or losses that happen. For example, trips and falls caused by debris or damage to a clients personal vehicle can all end up as a public liability claim. Depending on the cost of medical treatment, repair of property, or replacement of belongings, the cost of a public liability claim can be high. So, even though this type of insurance is not required by law, most tradesmen understand the value of investing in a policy.
Personal accident
Accidents or critical illnesses can be long term and debilitating. Along with being unable to work and there is also the added stress caused by losing income. For tradesmen that are the sole breadwinner or dependent on their earning, personal accident insurance can help to bridge the financial gap. Along with replacing lost income, personal accident insurance can cover the cost of medical treatment or transportation to appointments.
Tools and equipment
Tools of the trade are essential for tradesmen to be able to carry out work duties. Should equipment be lost, damaged, or even stolen, tools and equipment cover will bear the cost of replacement. This policy not only covers tools belonging to the tradesman but can also protect any equipment that has been rented to perform work.
Business vehicle
Trucks, vans, and any other vehicles used for the tradesman’s business will need to be covered under a business or commercial vehicle policy to be driven legally. Depending on the tier of coverage purchased, vehicle coverage can cover repairs and replace vehicles in the event of a total write off. Company vehicles can be essential for transporting staff and materials to job sites, and the loss of one may impede operations.
Contract works
Work that is in progress can be at risk from vandalism, fire, floods, or other unforeseen occurrences. Contract works insurance will protect work that is in progress and cover costs of rebuilding or repairing damaged areas.
Professional indemnity
Tradesmen who have performed work can still be accountable for issues that arise long after completion. A professional indemnity policy provides protection for claims that a client brings for financial loss due to mistakes, errors, or even miscommunications in professional advice given by a tradesman.
Sources:
- https://www.nimblefins.co.uk/business-insurance/tradesman-insurance
- https://www.daslaw.co.uk/blog/when-home-improvements-go-wrong
- https://probuildermag.co.uk/features/a-guide-to-tradesman-insurance