Tradesman insurance is a broad term that refers to the specialised cover needed to cover the hazards and risks involved in working in a specialist trade. Tradesman insurance will offer varying levels of cover towards important factors such as contribution towards legal fees, cover for tools and equipment related to your work.
What is included in tradesman insurance?
Whilst every policy is different, a typical tradesman insurance policy could include the following:
- Public liability insurance
- Employers liability insurance
- Business legal protection
- Collision Damage Waiver (CDW)
- Supplemental Liability Insurance (SLI)
- Tool insurance
- Business equipment insurance
- Business buildings cover
- Personal accident insurance
- Contract works insurance
It is important to carefully review policy details. Not every policy shown on a comparison website will offer the same level of cover, therefore it is necessary for you to choose coverage that aligns with your specific needs and the nature of your work. Insurance requirements will vary depending on the size of your business as well as the type of trade.
When comparing tradesman insurance in the UK, it is essential to consider factors such as the specific risks associated with your trade, compliance with regulatory requirements and any other contractual obligations you may have with your clients. To help you understand the world of tradesman insurance in more detail, we’ve put together this guide of the different aspects that you may want coverage for.
Public Liability Insurance
Public liability insurance is the cornerstone of coverage for UK tradesmen. It protects against legal and compensation costs if a third party suffers injury or property damage as a result of your business activities. Many clients and contracts require trades people to have a minimum level of public liability coverage.
Employers’ Liability Insurance
Employers’ liability insurance is a legal necessity if you employ staff. It safeguards your business against costs arising from injuries or illness to your employees during work. In the UK, failure to have employers’ liability insurance can lead to substantial fines.
Tools and Equipment Cover
With the rising risk of tool theft in the UK, this coverage becomes vital in ensuring that the costs of replacing or repairing tools and equipment are covered in the event of theft, damage or loss.
Personal Accident Cover
In the event of accidental injury, this insurance provides financial support, covering medical expenses and can even offer a lump sum payment in the event of disability or death. This can provide a safety net for you and / or your family.
Contract Works Insurance
Particularly relevant for tradesmen involved in construction, this covers the cost of redoing work that is damaged during construction as a result of fire, theft or vandalism.
Professional Indemnity Insurance
Relevant for trades people offering advice or professional services, professional indemnity insurance is crucial for covering legal costs and compensation if a client alleges financial loss as a result of your professional negligence, errors or omissions.
Business Interruption Insurance
Business interruption insurance compensates for lost income and additional expenses caused by insured events such as fires, floods or other property damage.
Legal Expenses Insurance
Having legal expenses insurance is prudent, especially given the intricacies of UK employment law and potential contractual disputes. This coverage covers the costs associated with legal disputes, including employment disputes and tax investigations.
Things to consider when comparing Tradesman Insurance policies
Type of coverage
Assess which areas of coverage are essential for your trade, whether from a legal perspective or from a financial viewpoint.
Coverage limits and exclusions
Understand the limits of coverage for each aspect of the policy. Carefully review any exclusions that might limit the scope of protection. Ensure that the coverage limits are adequate for the size and nature of your business.
Policy costs
Compare premium costs from different insurers. Be wary of low premiums that might come with high excesses or provide limited coverage. Consider the overall value of the policy in relation to the coverage provided.
Excesses and deductibles
Examine the exccesses associated with each coverage. A higher excess can reduce your premium but may increase your out-of-pocket expenses in the event of a claim.
Claims process
Research the insurer’s claims process. A smooth and efficient claims process is crucial during stressful situations. Check reviews from genuine customers and ask for recommendations.
Policy terms and conditions
Thoroughly read through the terms and conditions of the policy. Pay keen attention to any obligations or conditions that you must meet for the policy to remain valid. Failure to comply with these conditions could affect your ability to claim.
Additional Benefits
Some policies will offer additional benefits, such as access to risk management tools, legal helplines or discounts for certain services.
Financial strength of the insurer
You will want to check the financial stability and reputation of the insurance company. You want to choose an insurer with a strong financial standing, to ensure that they can fulfil their obligations in the event of a claim.
Customer reviews and ratings
Look for genuine customer reviews and ratings of the insurance providers. Feedback from other trades people can provide insights into the customer service, claims handling and overall satisfaction.
Policy renewal terms
Understand the renewal terms and whether the insurer will automatically renew the policy.
Legal requirements
Ensure that the policy meets any legal requirements for your trade, such as the minimum level of employers’ liability insurance needed if you have employees.
By carefully considering these factors, you can make an informed decision when comparing tradesman insurance cover in the UK.