If you are a tradesman, it is imperative that you have the required business insurance cover to protect you against numerous circumstances. Tradesman Insurance will be required by professionals such as plumbers, builders, decorators, electricians and many more. Professionals such as consultants, solicitors, accountants, graphic designers and surveyors who might not require office insurance but need liability insurance and cover for their equipments, can also avail the benefits of tradesman insurance.
Who needs Tradesman Insurance?
If you are a sole trader or have your own enterprise with employees, you can consider taking out a tradesman insurance policy which will cover your equipments, stock, buildings or hired in plant equipment. Tradesman Insurance can be tailored and you can only choose the cover you need to run your business.
What are the features of Tradesman Insurance?
The below features are included in most Tradesmen Insurance policies:
- Employer’s liability – This is compulsory under the Employer’s Liability (Compulsory Insurance) Act of 1969 and has the power to prosecute you if you have employees working for your business without adequate cover. Irrespective of the fact about who you employ such as interns, trainees, temporary workers, sub-contractors, full time or part time workers, you are still required to provide adequate insurance cover. If you fail to produce the certificate of insurance in front of The Health and Safety Executive (HSE) inspectors, you stand a chance of being fined up to £2500 every day until your employees are protected. Employer’s Liability policies will cover you against solicitor’s fees, court costs and any due compensation to be awarded.
- Public Liability (indemnity levels may vary, up to £10,000,000) – This will protect you against any form of claim made against you in case of you causing damage to third party or third party property. Contractors All Risks (CAR) is a standalone policy which tradesman often buy over and above their public liability policy. It insures your raw materials and tools against theft, loss and damage. CAR policies are tailored to your individual needs and include cover for your plants and tools, hired-in plant, contract works, temporary buildings, showroom contents, architects drawings and property awaiting sale.
- Contract works - to protect materials you use both in transit or on site
- Options to extend cover to trading equipment
- Options to extend cover to temporary employees
What other things should I consider when taking Tradesman Insurance?
There are numerous items which can be featured within the range of Tradesman Insurance covers to select from and below are some of the major types of insurances that have been highlighted in detail.
- Public Liability – This includes cover against injury of third party or death, damage caused to any third party property arising as a result of your business endeavours.
- Professional Indemnity – This provides you protection during times you make an error unknowingly causing inconvenience or financial loss to your clients and in return, if he files a claim against you and your business. Filing a lawsuit could cost you legal fees, which in turn might paralyze your business and this could happen even if you feel the blame should not be rested with your business.
- Business interruption cover – Numerous insurers automatically include this feature in their policy. This feature covers you during the time you are unable to work due to any emergency circumstances.
- Business equipments – If your business equipments are stolen, lost or accidentally damaged in the UK, this will provide an appropriate cover.
- Buildings and content cover – You can secure your business premises by taking out a buildings cover.
- Business tools – It covers your power tools and hand tools in case of theft, loss or accidental damage.
- Contract works – Contract conditions might make your business responsible for the works and materials while being on site. You can provide cover up to £500,000 depending upon the nature of the contract you make.
- Own and Hired Plant – This provides adequate cover for damage or accidental loss of any product of your plant. If an accidental damage has been caused to your hired-in plant, this attribute protects for your legal liability.
What are the various extensions of Tradesman Insurance?
Numerous Insurance Companies customise Tradesman Insurance to fit your exact business needs. The various kinds include Building, Carpentry trades, Groundworker’s insurance, Glazing Trade and Roofing Trade’s insurance, Bricklaying, Decorating, Gardening and Contractor Insurance.
Which kind of trades might be difficult to find cover for?
You might need research and assistance to find cover if your trades involves the following options.
- If you work at heights
- If you work in a environment with high temperature
- You have an extremely large annual turnover
- You alternate clerical and managerial work
- You have not traded for a considerably long time
- If there is anything unusual or highly specialised about the kind of work or trade you do
- If you work with certain chemicals or hazardous materials
What are the general exclusions of Tradesman Insurance?
Below are the general exclusions of Tradesman Insurance.
- The use of or exposure to asbestos or materials or products containing asbestos whether or not there is another cause of loss which may have contributed concurrently or in any sequence to a loss.
- Loss of market value beyond the cost of repair, replacement or reinstatement of property.
- Damage to Computer Equipment or any other loss arising directly or indirectly from unauthorised access.
- Any damage caused by or in connection with the property being used by you, your tenant or any other lawful visitor for the conduct or attempted conduct of illegal activity.
- Policy excess as reflected in your policy documents
- Hazardous location
- Loss or injury occurring out of EU
- Theft of tools and equipments from unattended but unlocked vehicles
Exclusions may vary depending on the type of trade you conduct.
Things to Remember
- Like every other insurance, Tradesman Insurance can be paid monthly or yearly basis.
- Tools for many trades are covered, ranging in value from £1000 to £5000.
There are numerous trade insurance policies available in the market. Ensure that you conduct an appropriate research before opting for a policy.