TRADESMAN INSURANCE
Compare public liability insurance for tradesman and contractors
What is tradesman insurance?
Tradesman insurance is a specialised form of business insurance tailored to meet the needs of tradespeople and small businesses in the trades industry, by combining a range of insurance products. This type of contractors insurance provides protection against the unique risks and liabilities associated with trades such as plumbing, carpentry, electrical work, construction, and other manual professions.
Fundamentally, tradesman insurance typically includes public liability insurance, which covers legal and compensation costs if a third party is injured, or their property is damaged as a result of a tradesman’s work. It can also include employers liability insurance, which is a legal requirement if the tradesman employs staff, offering protection against claims from employees who might suffer work-related injuries or illnesses.
Additionally, tradesman insurance often covers tools and equipment, protecting against theft, loss, and damage, which is vital for those who rely on expensive tools for their livelihood. Optional coverages can include professional indemnity insurance, which protects against claims of professional negligence, and personal accident insurance, which provides financial support if the tradesman is injured and unable to work.
How to compare tradesman insurance quotes?
At Get Indemnity™ we can seek the most competitive cover dependent upon your needs. We work with a wide range of insures to ensure we can provide competitive premiums for risks associated with a range of trades, including but not limited to construction, plumbing, electrical work, maintainance, carpentry, and painting.
Insurance companies' tradesman insurance cover will be differ slightly. Some can have varied coverage limits and scope, while others may have differing flexibility or geographic coverage. Exclusions and limitations are likely to differ between insurers, as well as the premiums and the terms and conditions of the policy.
By having a clear understanding of what your insurance coverage protects against, business owners can make informed decisions about their coverage needs and create a robust risk management strategy. Compare tradesman insurance quotes to ensure your business is fully covered by a robust policy from the leading commercial insurance carriers.
Who needs tradesman insurance?
Self-employed and business owners
Tradesman insurance is essential for a wide range of self-employed tradespeople and business owners. It is specifically designed for those working in manual or construction trades such as builders, electricians, plumbers, carpenters, and decorators.
Other tradespeople
In addition to traditional trades, other professional who may need tradesman insurance can include painters, roofers, tilers, and landscapers. Even smaller-scale tradespeople like handymen, gardeners, and independent contractors benefit from this insurance cover.
Businesses with staff
For those employing staff, employers liability insurance, a common component of tradesman insurance, is legally required. Overall, anyone in a trade-related profession should consider tradesman insurance to protect against financial risks and ensure compliance with legal obligations.
Obtain tradesman insurance with get indemnity™.
Either give us a call on 0345 625 0711 or complete our digital onboarding process to obtain your quote.What does tradesman insurance cover?
Tradesman insurance in the UK offers a range of business insurance coverages designed to protect tradespeople from the risks and liabilities associated with their work. The core cover typically includes public liability insurance, which safeguards against legal and compensation costs if a third party is injured, or their property is damaged due to the tradesman’s activities. This is crucial for tradespeople working in client homes or on construction sites.
Tools insurance can also be provided in a trades insurance policy, protecting against theft, loss, or accidental damage, ensuring that tradespeople can quickly replace essential items and continue working without major disruptions. Employers liability insurance, which is mandatory for any business with employees, covers claims from staff who may suffer work-related injuries or illnesses.
Optional covers can include professional indemnity insurance, which protects against claims of professional negligence, and personal accident insurance, offering financial support if the tradesman is injured an unable to work. Together these covers form a comprehensive policy that has tradespeople covered in the event of an unexpected incident during their work.
What levels of cover are available?
In the UK, business insurance is highly customisable, allowing tradesman to select varying amounts of cover based on their specific needs and risks. The flexibility is important because the risks associated with different trades can vary significantly, and a one-size-fits-all approach is impractical. Understanding how much cover you need depends on several factors, including the nature of your work, the value of your tools and equipment, and whether you employ staff.
The most common component, public liability insurance, typically offers cover ranging from £1 million to £10 million plus. The level of cover you need depends on the scale and risk associated with your operations. For example, tradespeople working on large construction projects or in public spaces may require higher limits due to increased potential for significant damage or injury claims. Conversely, smaller trades or those working primarily in private homes may need less coverage.
When it comes to tools insurance, the amount of cover should reflect the total value of your tools, including any high value items that would be costly to replace. It’s essential to regularly review and update this cover to ensure it matches the current value of your assets.
For employers liability insurance, the UK law requires a minimum of £5 million in cover, but many policies offer higher limits to provide additional protection. The insurance is necessary if you employ anyone, even on a casual or part-time basis.
To determine the right level of cover, consider your work environment, the potential risks, and any legal or contractual obligations you may have. Consulting with an insurance broker can also help tailor the cover to your specific needs, ensuring you are adequately protected without unnecessary extras. Regularly reviewing your policy as your business grows or changes is key to maintaining the right level of cover as well as an effective risk management profile.
Frequently asked questions
Will I need tradespeople insurance to secure contracts?
In the UK, it is common for clients, particularly those in the construction and property sectors, to require tradespeople to hold specific types of insurance as a condition for awarding contracts. This requirement for contract works is especially prevalent in larger projects where the risks are higher and the potential liabilities more significant.
Clients often insist on public liability insurance, as it protects against claims of injury or property damage caused by the tradesperson’s work. This form of business insurance assures the client that any accidents or damage that occur on the job site will not lead to financial loss or legal complications for them.
Similarly, employers liability is mandatory for tradespeople who employ staff and is often required by clients to ensure that any workplace injuries sustained by employees is covered. This protects the client from potentially being held responsible for incidents involving the tradespeople’s team.
Clients may require professional indemnity insurance if the tradesperson provides design, advice, or consultancy services as part of the contract. This insurance covers claims relating to professional negligence or errors in the work. Holding the necessary insurance not only meets client demands but also enhances the tradesperson’s credibility and competitiveness in securing contracts, especially with more prominent or risk-averse clients.
What are some common exclusions on tradesman insurance policies?
While comprehensive, tradesman insurance policies in the UK can contain certain exclusions that tradespeople need to be aware of. Common exclusions include damage to or loss of property due to wear and tear or gradual deterioration, which are considered maintenance issues rather than insurable risks. Similarly, claims arising from defective workmanship are typically excluded, meaning if a tradesperson’s work itself is faulty and causes damage, this may not be covered under standard public liability insurance.
Another common exclusion is the use of heat. Tradespeople using welding equipment, blowtorches, or other high-heat tools may need to purchase additional cover, as many standard policies exclude incidents involving heat. As well as this, most policies exclude cover for claims arising from activities undertaken from outside the UK, unless specifically arranged. This is important for tradespeople working on international projects to be aware of. Employers liability insurance, while mandatory, generally excludes cover for injuries sustained by employees due to deliberate acts or gross negligence.
Finally, personal accident cover, if included, often excludes injuries sustained while under the influence of drugs and alcohol. Understanding these exclusions is crucial for tradespeople to ensure they are not caught off guard by a claim that their policy does not cover. Always review policy details carefully and consider additional cover if needed.
Is tradesman insurance a legal requirement?
While tradesman insurance itself is not a legal requirement, employers liability insurance is. This can come as part of tradesman insurance policies, and any UK company that hires staff will be required to possess at least £5 million of cover. They typical amount of cover provided is £10 million from most insurers. The consequences for not having employers liability insurance can include fines, as well as being held personally liable for any claims made by employees.
By getting your employers liability cover through a tradesman policy, you are able to cover multiple bases by packaging covers. You can attain other covers, such as professional indemnity and public liability insurance, which can help to protect against the risks faced by you as a tradesman.
How do I know how much cover I need?
There are several key factors you need to consider when obtaining tradesmen insurance.
The nature of your trade can dictate the varying levels of risks faced. For example, the risks faced by builders or contractors can include significant damage to a property or even injury, while handymen or decorators may require lower limits due to a reduced risk exposure. Consider the contractual requirements you may face in order to secure work. These can often refer to public liability insurance.
The standard cover for public liability insurance typically ranges from £1 million to £10 million. Opting for a higher limit can be wise when working in high-risk environments, such as construction sites or public spaces. The value of your tools and equipment must also be considered when deciding on the cover limit for them.
Companies that employ staff will require a minimum of £5 million employers liability insurance, although many policies will offer more, usually £10 million. Professional Indemnity insurance, otherwise known as professional liability insurance, is necessary for those who provide advice, and design or consultancy services, so consider how much insurance cover you could need to protect against a claim of professional negligence.
Consulting insurance experts, like those at Get Indemnity, can help you to decide what levels of cover are appropriate for your policy.
Can I add additional coverages to my policy?
You can often add optional extras to your tradesman insurance cover. These can include such covers as legal expenses, personal accident cover, and even higher limits on tools and equipment cover. These can be valuable depending on the risk exposures your business faces.
Can I increase my cover limits after purchasing a policy?
You are able to make adjustments to your policy after purchasing. This may refer to adding new covers to your policy or adjusting the pre-existing limits on your cover. However, it’s important to remember that this will likely impact your insurance policy premium.
Do I need contract works insurance?
Contract works insurance is another very common insurance coverage that is often required. Many contracts will require the contractor to have contract works insurance in order to secure the job. This is likely to be accompanied by a demand for public liability insurance.
Public liability insurance covers the cost of claims made by members of the public for incidents that occur in connection with your business activities.
Related articles and guides
Your business will need professional indemnity insurance if you provide a service, advice, consultancy, design, plans or specifications to a client.
Liability insurance is a type of business insurance that provides protection against a claim resulting from injuries and damages to people and property..
General liability insurance is a type of business insurance that provides protection against financial loss arising from claims of bodily injury or property damage.
Thankfully, insurance is not as complicated as it may seem. So, we've put together a handy guide that will point you in the right direction when it comes to taking out a business insurance policy.