Different kinds of businesses need different kinds of insurance. If you’re working as a tradesman, you will require cover for a number of specific risks. Many insurers will combine the various policies you need into a package, advertised as “tradesman insu
These insurance packages might comprise some or all of the following types of cover:
### Public liability insurance
As a tradesman, you’ll probably be working in other people’s homes or places of business, and regularly coming into contact with members of the public. No matter how skilled or cautious you are, there is always the danger of accidents and injury or damage occurring as a result of your business. Taking this into account – as well the nature of tradesmen’s work, with the use of tools, etc – public liability insurance is usually a feature of tradesman insurance.
Public liability insurance is to protect you in the event of a member of the public suffering injury, damage or loss as a result of your work. In case someone decides to claim against you, it can cover you for compensation for damages, loss of earnings, loss of future earnings and legal costs.
### Employers’ liability insurance
If you employ someone who isn’t a member of your family, you’re legally obliged to have employers’ liability insurance. This is the case whether the employee is full-time, part-time, permanent, temporary, contract, sub-contracted or even voluntary. Your policy must cover you for at least £5 million – even if you have only one employee. If you don’t have sufficient employer’s liability insurance you could be fined £2,500 for every day you are without it. You could also be fined £1,000 if an inspector asks to see your insurance certificate and you fail to present it.
### Cover for tools and materials
Many tradesman insurance packages include cover for your hand tools, power tools and materials in the event of loss, accidental damage or theft. You can get a policy that includes cover for equipment left in your vehicle or on site overnight, and also take out insurance protecting stock, materials and customers’ goods you’re responsible for.
### Other options
Although there are “off-the-shelf” tradesman insurance deals that might be suitable for your business, you also have the option to tailor your insurance package so it is suitable for the specific needs of your enterprise. You can include other options as appropriate, such as buildings and contents insurance for your business premises, own-plant or hired-in plant cover, or even professional indemnity insurance which could protect you if a client files a claim against you for an error you make or if they deem your work to be unsatisfactory.
Consider all the different types of cover you are likely to require in your line of work and shop around for the best deal – not just the cheapest offer, but the insurance package that gives you the protection you need.