Tradesman Insurance Quote

What does tradesman insurance cover?

While you might apply for ‘tradesman insurance’, that term actually encompasses a number of different policies applicable to your business. Each will cover the legal fees and, where applicable, compensation costs related to a claim.

Below, you can look at which types of business insurance are typically included with tradesman insurance, and which ones you may need to source separately.

What is usually included in tradesman insurance?

While tradesman insurance quotes will vary from insurer to insurer, they usually include a combination of the following:

• employers’ liability insurance (if needed)
• public liability insurance
• professional indemnity insurance
• stock and materials insurance
• plant, tools and equipment insurance
• contract works insurance
• personal accident insurance
• business contents insurance
• tradesman van insurance

It is important to carefully read what your potential tradesman insurance policy will offer because the automatic cover from each insurer will differ.

What is usually not included in tradesman insurance?

What isn’t covered by your tradesman insurance policy will largely be dictated by what you choose to include at the point of purchase.

So, if you buy a tradesman insurance policy without stocks and materials insurance, that specific policy wouldn’t cover you if your stock was stolen, or if materials were damaged.

This is why it is so important to consider the particular needs of your industry and business, and to check exactly what the policy you are buying covers.

There are certain common situations as a tradesperson, however, that won’t be covered by your insurance. For example, tool and equipment insurance won’t cover standard wear and tear over time, while there may be ‘single item limits’ on how much a tool or piece of equipment can cost.

Any claims related to theft may not be covered if the proper security measures weren’t put in place. Ditto any situations where you or your employees were deemed to be acting inappropriately or irresponsibly.

Again, you should make sure you thoroughly read the terms and conditions of every aspect of your tradesman insurance policy.

Do I need tradesman insurance?

No one likes to dwell on worst-case scenarios but when working as a tradesperson, the risk of injury or property damage is real. Tradesman insurance, and all it covers, can help make sure you and your customers are protected if something does go wrong.

There is only one form of business insurance you may be legally required to take out as a tradesperson: employers’ liability insurance. If you have even one person working for you – and they aren’t a member of your family – the government states you need an employers’ liability insurance policy worth at least £5 million from an authorised insurer. Failure to do so could result in a fine of £2,500 for every day you are not properly insured.

» COMPARE: Employers’ liability insurance

However, just because other forms of business insurance aren’t a legal requirement, it doesn’t mean you don’t need them as a tradesperson. There are various situations in the trade industry where you would be thankful for having a solid tradesman insurance policy in place.

This is most evident in the case of public liability insurance. If you were a plumber and a pipe you installed later burst, any damage caused would be covered by your public liability insurance. This policy would also help if a member of the public is injured by one of your workers as they walk past your building site.

Similarly, if you are a builder, and you incorrectly advise a client on the best way to install a new wall in their home, professional indemnity insurance can pay for the cost of fixing the error.

Contract works insurance can help if the new-build house you are working on is damaged in a flood or fire, while tradesman tool insurance is there if your key equipment is damaged or stolen and needs to be replaced.