Insurance for tradesmen. What do you need?

Tradesmen, by definition, are people who work in skilled trades. Builders, carpenters, electricians, and plumbers, to name a few.

In 2021, over 353,000 construction businesses were employing 2.15 million people. 

And the growing demand for new housing, home improvements, and 'greener' buildings looks set to drive that figure higher.

Work that involves not only know-how but physical input carries a risk of things not going to plan, however. So what insurance do tradesmen need? And how does it benefit your business?

Mishaps and mistakes happen

Whether you're working on a building site, in someone's private home, or on a commercial property, you see people. 

And when other people and other people's property are involved, there's always a risk of injury or damage. It's all in a day's work and means you might find yourself facing an expensive claim for compensation or repairs.

Like someone trips over your extension lead and badly breaks their ankle. Or you drop your drill while installing an extractor fan and it smashes your customer's top-of-the-range ceramic hob.

Public liability insurance protects your company's finances where third-party accidents are concerned. It pays your legal costs and picks up the tab for any compensation you owe. Plus it helps keep your customers sweet. 

It's also a requirement to have public liability insurance if you're a member of a trade organisation like NAPIT.

Cover your kit

Your kit is your business when you're a tradesman, and you can't work without it.

Tools and equipment insurance covers the specialist tools of your trade, including anything portable. If something gets damaged, goes missing or is stolen, tools and equipment insurance will pay to repair it, if possible. If it's beyond repair, your insurance will replace it, like for like.

So, if your kit gets broken or grows legs and walks…your business can still stand on its own two feet.

If you have bigger bits of kit, like machinery, trailers, huts, or a site caravan, you'll need construction plant and machinery insurance. Just in case something gets damaged or stolen. It also pays to remove large broken items from the site.

Just so you know though, construction plant and machinery insurance doesn't cover mechanical failure.

And if the job needs some specialist kit, you'll need cover for that. Hired-in plant insurance treats your borrowed gear as if it's your own. It covers any repair or replacement costs, as well as ongoing hire charges while kit is out of action. 

Potential people problems...

If you employ anyone, employers' liability insurance is a legal requirement. If a staff member is injured or becomes ill because of the work you've asked them to do, they can sue. Employers' liability pays to defend you (even if you're not at fault) and covers any compensation owed.

Adding legal expenses insurance is a great way to protect yourself in contractual disputes too. Whether it’s with an employee, a client, or a supplier. It’s worth noting though, that it’ll only pay out if the insurer believes you’re the one in the right.

Legal expenses can help out with lots of other things too. It’ll cover any costs if you make a mistake with your taxes. And cover any lost income if you’re called up for jury duty.

What other insurance for tradesmen might you need?

If you're in a trade, you might store stock to use on a job. Maybe a door you've bought in, or some plasterboard. All it would take is a burst pipe, and it'd be wrecked. Or, if you're moving it from storage to your site, a knock or dent would mean it's unusable.

Business stock insurance will cover the cost for damaged items meaning your business won't suffer, even if your stock does.

Or what about if you're midway through a construction project and disaster strikes? The site floods, or there's a storm. Or, worse still, vandals cause a whirlwind of chaos and destruction just as you've got the house you're working on watertight. 

Contract works insurance can help in those scenarios. It pays to get you back to where you were before the damage by covering the cost of materials and labour.

Build a wall of insurance protection

Accidents and mishaps happen. Problems can come from mistakes you make. Or something could happen that's out of your control. 

Play safe by finding out more about insurance for tradesmen. Or call us on 0345 222 5391 to speak to the team.

Image used under license from Shutterstock.