What does tradesman insurance cover?

Tradesman insurance isn’t just another expense, it is a vital investment for anyone working in manual trades.

Whether you’re a builder, electrician, plumber, carpenter, or any other skilled tradesperson, this tailored package of business insurance policies is designed to protect you and your business from the unique risks you face every day.

This is not a one-size-fits-all solution but a collection of covers – including public liability cover, employers liability cover, and trades insurance – that can be customised to your specific needs, offering peace of mind and financial security so you can focus on what you do best.

Why do tradesmen need insurance?

The life of a tradesman is filled with potential hazards. From working at heights and operating machinery to handling dangerous materials, the risks are numerous.

Tradesperson insurance acts as a safety net, protecting you from the financial fallout of unforeseen events, including:

Accidents and injuries

A customer trips over a tool on your worksite, a passer-by is injured by falling debris, or you cause accidental damage to a client’s property. These situations can lead to costly compensation claims, legal action, and medical costs.

Tradesman public liability insurance covers these costs, ensuring your business doesn’t suffer. Additionally, personal accident cover provides financial support if you are injured on the job, covering lost income and related expenses.

Faulty workmanship allegations

Even the most skilled tradespeople can make mistakes. If a client claims your work was faulty and caused them financial loss, professional indemnity insurance steps in to cover legal defence costs and potential compensation.

Employee injuries or illnesses

If you have employees, accidents happen. Employers’ liability insurance is not just a good idea; it’s a legal requirement in the UK. It covers compensation and related expenses if an employee is injured or becomes ill due to their work.

Tool and equipment theft or damage

Your tools are your livelihood. If they’re stolen from your van or damaged on-site, tools insurance covers the cost of repair or replacement, so you can get back to work quickly.

Similarly, buildings insurance can protect your business premises from damage due to events like fire or flood, ensuring your workspace is quickly restored.

Without cover, these incidents could lead to financial ruin, especially for smaller businesses or sole traders. Tradesman insurance is an investment in the future of your business, ensuring you’re not left footing the bill for unexpected events.

Types of tradesman insurance cover

Public liability insurance (core cover)

Public liability insurance is the foundation of any tradesman insurance policy. It protects you if you’re held responsible for:

• Injury to a third party: This includes customers, members of the public, or anyone else who is not an employee.
• Damage to third-party property: This could be a client’s home, their belongings, or even a neighbouring property.

Public liability insurance covers the cost of compensation, legal claims, and other expenses related to the incident. It’s often a requirement for many contracts and demonstrates to clients that you’re a responsible and professional tradesperson.

Employers’ liability insurance

If you employ people, even on a casual or temporary basis, employers’ liability insurance is a must in the UK. It protects you from the financial impact of:

• Compensation claims: If an employee is injured or becomes ill due to their work, this insurance will pay compensation, including any related legal action.
• Legal costs: If an employee sues you, this insurance covers your legal defence costs.

Failure to have employers’ liability insurance can result in significant fines, so it’s essential to have this coverage in place if you have staff.

Other essential covers

Beyond public liability and employers’ liability, there are other essential covers that can be tailored to your specific trade and business needs:

• Tool insurance: Covers the cost of replacing or repairing your tools and equipment that are lost, stolen, or damaged. This is crucial for tradespeople who rely on their tools for their livelihood.
• Business equipment insurance: Protects your business equipment, such as laptops, mobile phones, and other essential items, from theft, loss, or damage.
• Personal accident insurance: Provides financial support if you’re injured and unable to work due to a personal accident, whether it happens on or off the job. This can include a lump sum payment or weekly benefits to cover your income and medical costs.
• Contract works insurance: If you’re working on a project, contract works insurance covers the cost of repairing or rebuilding work that’s damaged or destroyed due to events like fire, flood, or theft.
• Professional indemnity insurance: This is essential for tradespeople who provide advice or design services. It protects you against claims of negligence, errors, or omissions in your professional services, covering legal defence costs and potential compensation.

Optional covers (tailored to your needs)

To further enhance your protection, consider these additional covers:

• Business interruption insurance: If your business is forced to close temporarily due to an insured event, (like a fire or flood), this insurance policy covers your lost income and ongoing expenses, helping you get back on your feet.
• Legal expenses insurance: Covers legal costs for a wide range of issues, such as contract disputes, employment tribunals, or tax investigations.
• Cyber insurance: With the increasing reliance on technology, cyber insurance is becoming more important for tradespeople. It protects your business from the financial impact of cyber attacks and data breaches.

How to choose the right tradesman insurance policy

Selecting the right cover requires careful consideration of your individual needs and circumstances. Here’s a step-by-step guide:

1. Assess your needs: Consider your specific trade, the size and nature of your business, the value of your tools and equipment, and whether you have employees.
2. Get quotes: Compare quotes from different insurance providers to find the best balance of coverage and cost. Get a quote from Kingsbridge today to compare and find the best tradesman insurance for your business.
3. Read the policy documents carefully: Pay close attention to policy limits, exclusions, and excesses to ensure the policy meets your needs.
4. Choose a reputable insurer: Look for an insurer with a good reputation for customer service and claims handling. Consider online reviews and ask for recommendations from other tradespeople.

If you’re unsure about what coverage you need, getting professional advice from an insurance broker can be invaluable.

Cost of tradesman insurance

The cost of tradesman insurance varies depending on several factors, including:

• Your trade: Some trades are considered higher risk than others, which can affect the premium.
• Number of employees: If you have employees, your premium will be higher due to the need for employers’ liability insurance.
• Location: Your location can influence the premium, as some areas have higher crime rates or are more prone to natural disasters.
• Claims history: A history of making claims can lead to higher premiums.
• Level of cover: The more comprehensive your chosen coverage, the higher the premium.
• Excess: The excess is the amount you agree to pay towards a claim. A higher excess can lower your premium.

Once you understand these factors, you can make more informed decisions about your cover, and potentially reduce your insurance costs.

Conclusion

Tradesman insurance is more than a cost of doing business, it’s a strategic safeguard for your hard work and future success. Knowing what this insurance covers is crucial for securing your business.

With the right cover, you’re not just mitigating potential risks, you’re ensuring your ability to overcome unexpected challenges and continue operating smoothly.

For small and medium-sized enterprises (SMEs), tradesman insurance provides comprehensive protection, enabling you to navigate your trade’s inherent uncertainties confidently. When unforeseen events occur, you won’t be left scrambling to recover financially.

Request a personalised quote from Kingsbridge and get the financial resilience that comprehensive tradesman insurance offers.

FAQs about tradesman insurance

What does tradesman cover typically include?

Tradesman cover typically includes public liability insurance to protect against third-party injury or property damage claims, liability insurance for employee-related injuries or illnesses, and tools insurance for the repair or replacement of essential equipment.

It also covers Business Equipment, Personal Accident insurance for injuries on or off the job, and Contract Works, giving comprehensive protection for tradespeople against a range of risks.

Is Public liability insurance a legal requirement for tradesmen in the UK?

No, public liability insurance is not legally required for tradesmen in the UK, but it is often a contractual requirement for many jobs and is essential for protecting your business from potentially devastating financial losses due to third-party injury or property damage claims.

What happens if I need to make a claim on my tradesman’s insurance policy?

To make a claim on your tradesman insurance policy, contact your insurance provider as soon as possible after the incident, providing all relevant details and documentation, such as photos, invoices, or police reports. The insurer will then assign a claims adjuster to assess the situation and determine the right compensation.

Are there any common exclusions in tradesman insurance policies?

Yes, common exclusions in tradesman insurance policies include intentional damage, damage caused by wear and tear, and damage resulting from certain high-risk activities or materials not specified in your policy. It’s crucial to thoroughly review your policy documents to understand what is and isn’t covered.

What is the average cost of a tradesman insurance package?

The average cost of tradesman insurance can vary significantly depending on several factors, including the specific trade, the size and location of the business, the level of cover chosen, and the claims history.

However, basic packages that include public liability and employers’ liability insurance can start from around £150 per year. More comprehensive coverage with higher limits and additional cover – like tool insurance or business interruption insurance – will increase the tradesman insurance cost.

Does the tradesman insurance typically include plant insurance?

No. Plant insurance, which covers damage, theft, or loss of plant machinery and equipment, like excavators or scaffolding, is not typically included in a standard tradesman insurance pack. However, it can often be added as an optional cover if you regularly use such equipment in your work.

Having comprehensive business insurance ensures that you are prepared for various risks that may occur in your operations.

Does tradesman liability insurance cover damage to my own property?

No. Tradesman liability insurance, (usually meaning public liability insurance), only covers damage to third-party property, not your own. To protect your tools, equipment, or business premises, you’ll need additional cover, like tool insurance or business property insurance.

What is the difference between public liability insurance and professional indemnity insurance?

Public liability insurance protects you against claims for injury or damage to third parties or their property caused by your business activities. Professional indemnity insurance protects you against claims for financial loss suffered by a client due to your negligent advice, services, or designs.

What is employers’ liability insurance, and do I need it?

Employers’ liability insurance is a legal requirement in the UK if you have employ staff, even on a casual or temporary basis. It covers the cost of compensation and legal fees if an employee is injured or becomes ill due to their work for you.

What are some optional covers I can add to my tradesman insurance package?

Some optional covers you can add to your insurance package include business interruption insurance, (covers lost income if your business is unable to operate), legal expenses insurance, (covers various legal fees), and cyber insurance, (protects against cyber-attacks and data breaches).

Can my business insurance cover compensation costs if my faulty workmanship leads to a financial loss for my client?

Yes, if your insurance package includes professional indemnity insurance, it can cover compensation costs and legal expenses if a client sues your business due to financial loss resulting from your negligent advice, services, or faulty workmanship.

What factors affect the cost of my tradesman insurance?

Several factors influence the cost of your tradesman insurance, including your trade, the size of your business, the number of employees you have, your location, your claims history, the level of cover you choose, and the excess you’re willing to pay.