Tradesman Insurance: Your Questions Answered

A tradesman insurance policy typically includes a core set of covers, which may include:

– Public liability insurance – can help protect you if a member of the public is injured or their property is damaged as a result of your work. This is the cornerstone of most tradesman policies.

– Employers’ liability insurance – legally required if you employ anyone (including labour-only subcontractors in many cases). It can cover claims made against you by employees who are injured or become ill through their work.

– Tools and equipment cover – can cover the cost of replacing or repairing your tools if they are stolen, lost or damaged.

– Contract works insurance – helps protect works in progress, materials and temporary structures throughout the construction period.

– Plant and hired-in plant – can cover machinery and equipment you own or hire, such as diggers, generators or scaffolding.

The exact covers included will vary by insurer and policy so it’s always worth speaking to a broker to make sure your policy reflects your actual work. For a more detailed breakdown, read construction insurance covers to consider.

– If you employ anyone, even on a casual basis, employers’ liability insurance is a legal requirement with fines for non-compliance being significant.

– Many contractors and clients will insist on seeing evidence of public liability insurance before allowing you to start work on their site or property so not having insurance in place is not just risky, it can be prohibitive to obtaining jobs.

– Even if it’s not a legal or contractual requirement, working without insurance exposes you to potentially ruinous financial risk if something goes wrong on a job.

Even the most careful and experienced tradespeople can face unexpected incidents. Having appropriate insurance in place can help protect your business financially and reduce the impact of unforeseen events.

Public liability cover is typically available at £1 million, £2 million, £5 million or £10 million limits. The right level for you will depend on the nature and scale of your work.

Many larger contractors and public sector clients will specify a minimum level (often £5 million or £10 million) in their terms and conditions. If you’re tendering for contracts, it is worth checking what’s required before your policy renewal. Our commercial team can advise you on what level of cover is suitable for your circumstances.

This is an area where policies differ; some policies include labour-only subcontractors (those who use your materials and follow your instructions) within their employers’ liability cover.

Bona fide subcontractors who provide their own materials, equipment, and supervision, are usually expected to hold their own public liability insurance.

If you regularly use subcontractors, discuss this with your broker to ensure there are no gaps in your cover and that any contractual obligations are met.