Tradesman Insurance for UK Contractors
What Is Tradesman Insurance?
Tradesman insurance is for tradespeople in general. It is liability insurance designed to protect you financially against the extra risks faced by those carrying out manual jobs on site or at a client’s property. Without the correct tradesperson insurance, unexpected events could leave you significantly out of pocket and even leave your business unable to trade for long periods.
It is crucial to seek independent advice to make sure you get the correct business insurance and cover limits to suit the way your business operates.
Alexander Swan will work together with you so that we can build a tailored, all-encompassing policy to perfectly match your business and the risks it is exposed to.
Unlike dealing directly with an insurance company, Alexander Swan has access to multiple insurers and their wide range of policies.
This broad reach allows us to present you with a range of options, increasing the likelihood of finding the most competitive rates and comprehensive coverage. We are with you every step of the way, from helping you choose the right insurance through to fully assisting you should you ever need to make a claim.
What Does Tradesman Insurance Cover?
Tradespeople are in contact with the public and working in customers’ properties or onsite. Having the right insurance not only protects your financial position, but also shows that you’re professional and really care about your customers and the projects you work on. Important considerations are as follows
- Tradesman Public Liability: Public liability would cover the legal costs and compensation owed to a third party if they claim against you for injury or damage to their property.
- Employer’s Liability Insurance: If you employ staff, employer’s liability is a legal requirement to protect against injuries caused to an employee whilst working.
- Personal Accident Cover: This type of cover provides a lump sum in the event that you are injured as a result of an accident, leaving you unable to work for a certain time period.
- Professional Indemnity Insurance: If you offer advice, instructions, design or services to clients, professional indemnity protects you against claims for errors or professional negligence.
- Plant and Tools Insurance: To cover the repair or replacement of damaged or stolen tools and equipment.
Why Do Tradespeople Need Specialised Insurance?
Whether you are a one man band or a large construction company, your business needs specialised tradesperson insurance to protect it against potential claims due to accidents, theft, damage and other events that without the right cover could cause you significant financial loss.
If your business is responsible for a construction site or working on high value, complicated projects, then you may need a special construction insurance known as contractors all risk insurance. This is important to protect you from the more complicated risks such as damage or loss of the works in progress, third party liability arising from the project, and cover for subcontractors.
For particularly high risk trades, such as roofers, scaffolders, and groundworkers, it is especially crucial to seek professional and expert advice with regards to high risk liability insurance.
With our significant expertise and product ranges in this market, we are perfectly placed to guide you through the process of protecting you and your business no matter how big or small.
Tradesman Insurance FAQs
Public liability insurance is one of the most important covers for tradespeople, as it protects you against the legal costs and compensation owed to a third party if they claim against you for injury or damage to their property while you’re working.
The cost depends on your trade, turnover, number of employees and subcontractors, the public liability limit you need, the value of your tools, whether you do heat work or work at height, and your claims history. A sole trader decorator pays far less than a roofing firm. Speak to an Alexander Swan adviser for a quote compared across several insurers.
Two covers can be legal requirements: business use motor insurance for any van you drive for work, and employer’s liability as soon as you employ anyone. Public liability is not required by law, but most clients, main contractors and trade bodies will ask for it, and tools cover protects your income if kit is stolen.
Tradesman insurance can include public liability, employer’s liability if you have staff, personal accident cover, professional indemnity if you offer advice or design services, and plant and tools cover for repairing or replacing damaged or stolen equipment. The right combination depends on the trade you’re in and how your business operates.
Yes. If you employ staff, even on a casual or part-time basis, employer’s liability insurance is a legal requirement to protect against injuries caused to an employee while working.
Bona fide subcontractors, who supply their own tools, materials and insurance, usually need their own public liability. Most main contractors ask to see a certificate before work starts, commonly with a £5 million or £10 million limit.
Labour-only subcontractors work under your direction with your tools and materials, so insurers usually treat them as employees for employer’s liability. Bona fide subcontractors run their own business and carry their own insurance. Tell us which you use so your cover is right.
No. Public liability covers injury to other people and damage to their property caused by your work. It does not pay to put right the work itself. For example, a flood caused by a leaking joint is covered, but refitting the joint is not.
Tools cover can include theft from a locked van, but many policies restrict overnight cover or require the van to be garaged or fitted with extra security. Check your schedule, or ask us to find a policy that covers tools left in the van overnight.
Domestic work is often covered by £1 million or £2 million. Main contractors, housing associations and commercial sites commonly require £5 million or £10 million. Check your contracts before choosing a limit.