What Does Tradesman Insurance Cover?

Whether you are an insurance tradesman, a decorator, a construction company, or a sole trader operating as a builder, electrician, or plumber, securing your financial stability and ensuring the safety of your entire business will be paramount.

Typically, insurance liability at its core is a selection of policies that covers public liability, but it is not a specific type of insurance for tradesmen.

These policies will provide assistance in covering costs, compensation, legal fees, and any payment arising from a claim, as well as loss or theft, property damage, death, or injury resulting from an event.

Keep reading to uncover more details about the protection offered by tradesman insurance, the plans you need to consider, and the related expenses.

What insurance should a tradesman have?

While the particular specifics may vary from one policy to another, tradesman insurance typically provides coverage for:

  • If any claims related to the costs of replacing your own tools arise due to damage or injury caused to a client’s person or property, compensation will be provided.
  • The legal expenses you might face when defending the lawsuit.
  • Below we examine some of the most prevalent, and significant, forms of insurance for tradespeople to contemplate.

    » MORE: Do I require business insurance?

    Employers’ liability insurance

    If you employ any fellow tradesmen for your small business, whether they are apprentices or contractors, whether they work full-time, part-time, or as time allows, you are legally required to have at least £5 million of employer’s liability insurance coverage.

    This insurance will cover you if an employee is injured, or falls sick, due to the work they do for your business.

    If your staff consists entirely of family members, you do not require an employers’ liability insurance policy.

    » MORE: Explanation of employers’ liability insurance.

    Tradesman public liability insurance

    Public liability insurance is highly recommended for tradesmen as it provides protection in case of any injury or damage to a customer, client, or a member of the public, even though it is not legally mandatory.

    Accidents that would be covered include inadvertently damaging the side mirror of a client’s vehicle or causing a member of the public to stumble over your equipment and fracture their arm while transporting construction materials into their home.

    » MORE: Discover more about public liability insurance.

    Personal accident insurance

    Your staff and individuals from the community are not the sole ones in danger while you are performing your duties.

    If you are incapable of working because of any of these factors, a personal accident insurance plan will provide you with compensation. You are equally susceptible to illness, harm, or fatality resulting from your occupation, just like a tradesman.

    Tradesman tool insurance

    Your equipment is your source of income as a tradesperson. Your insurance plan will compensate for the expenses of replacing any items that are misplaced, stolen, harmed, or ruined, provided you possess tool insurance.

    Tool coverage plans typically fall into one of two categories.

  • Personal plant, tools, and equipment coverage. This applies to any tools and equipment that you personally possess.
  • Rented plant cover. This is for any tools or specialized equipment you may require to lease for your business.
  • Tradesman contract works insurance

    This type of insurance is typically required by individuals who are employed on construction sites, specifically those who require an extension building or a new housing development that is as large as a site.

    In situations beyond your influence, such as accidents, theft, vandalism, fires, and floods resulting in damage, when such incidents occur during the execution of your work, the insurance coverage provided by the works contract applies to cover it.

    Tradesman professional indemnity insurance

    Whether you need professional indemnity insurance depends on whether you provide advice on the specifications and designs of a business that could later cause financial loss for your client. This includes claims of professional negligence.

    » MORE: Everything you should be aware of concerning professional liability insurance.

    Plumbers insurance examples

    It is not difficult to envision the scenarios in which plumbers insurance would be beneficial.

    All it takes is for a poorly installed pipe to burst in a home client’s property for the liability insurance policy of plumbers to be worth its premium.

    If the tools used in the plumbing industry were to be damaged or break during a job, it can be expensive to replace them with new ones. That’s why it’s important to pay for insurance, which can cover the costs. Additionally, specialized tools in the plumbing industry can also be equally expensive to replace if they were to be damaged or break during a job.

    If you are in the business of plumbing, you may only need to consider professional indemnity insurance if you require specifications or professional advice. This applies to all trades, including plumbers. For instance, if you need guidance on how to properly plumb a new bathroom.

    How much does tradesman insurance cost?

    The amount you ultimately pay will impact various aspects, as is the case with any form of insurance. These encompass, but are not restricted to:

  • The quantity of policies you incorporate in your tradesman insurance bundle.
  • The extent of coverage you choose for every policy.
  • The scale of your company.
  • What industry is your business in, and what are the specific risks associated with it?
  • The location of your business and the types of places you operate in.
  • Any prior assertions you have made.
  • It is advisable to compare various insurers to ensure that you are receiving the most favorable agreement for your business, with the appropriate amount of coverage.

    Picture credit: Getty Images.

    Electricians insurance examples

    In a field full of dangers, it is smart to obtain a comprehensive range of insurance policies specifically designed for electricians.

    If a customer were to receive an electric shock from exposed wires left unsecured during a task, your electricians’ public liability insurance would cover the compensation they are entitled to.

    The same is true if an employee hurt themselves rewiring a kitchen – as long as you had an employers’ liability policy.

    If you were to return to your securely locked worksite from lunch and discover that your toolbox has been stolen, the expenses for replacing your belongings would be encompassed by a personal insurance policy for plants, tools, and equipment.

    You would only need professional indemnity insurance as an electrician, however, let’s say how the house should be best rewired or have electrical equipment installed, we can provide specifications or give you advice.

    Builders insurance examples

    If you are in the construction and building industry, there are many situations where your business shield would provide insurance for financial difficulties.

    For example, if one of your employees broke their leg due to falling debris while knocking down a wall, they would be owed compensation that would be covered by employers’ insurance liability.

    If an individual from the public, a customer, or a client gets injured while passing by your construction site, the expenses for compensation and legal fees will be covered by the builders’ public liability insurance.

    Before the flood, in the event of a storm causing flooding on the new house construction project you are currently involved in, the project would return to its previous condition, and the expenses for replacing materials, tools, and equipment would be taken care of by an insurance policy specifically designed for contract works.

    If you assist in designing and constructing a wall that later experiences structural problems as a result of your initial specifications, any financial loss suffered by the client due to its replacement will be covered by professional indemnity insurance for builders.

    About the Author

    Connor Campbell

    Connor Campbell.

    Previously, Connor, who serves as a spokesperson and lead writer for NerdWallet, has been quoted in market commentary by renowned news outlets such as Reuters, Standard Evening, The Guardian, and BBC.

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