Tradesmen Insurance

The insurance required depends on your trade, the work you undertake and the risks surrounding each project. Public liability, tools, plant, contract works and commercial vehicle insurance are among the covers commonly considered by tradespeople.

Businesses employing staff may also require employers’ liability insurance. Additional protection may be appropriate if you provide designs, specifications or professional advice, work from commercial premises or depend on expensive machinery.

Rather than selecting a standard package, your cover should be arranged around your occupation, turnover, contract values, work locations and equipment. West Craven Insurance can review your activities and help identify which sections are relevant to your business.

Public liability insurance is not generally a legal requirement for a self-employed tradesperson. However, it can provide important protection if a customer, visitor or other member of the public claims that your work caused an injury or damaged their property.

Many principal contractors, commercial customers, local authorities and site operators require tradespeople to hold a specified level of public liability insurance before work begins. The requirement may be written into a contract or form part of a site’s approval process.

The appropriate limit will depend on the projects you accept and the contractual requirements you must meet. Common cover limits include £1 million, £2 million, £5 million and £10 million, although higher limits are not automatically suitable for every business.

Public liability insurance may cover certain claims arising from accidental property damage caused while you are carrying out insured work. Examples could include damaging flooring while moving equipment, drilling into a concealed pipe or accidentally breaking a customer’s fixture.

Cover is not automatic for every mistake or repair. Policies may exclude damage to the specific part of the property being worked on, faulty workmanship, defective materials or the cost of completing work that was not performed correctly.

Your insurer must have an accurate description of the services you provide. Higher-risk activities, work involving heat, structural alterations or projects above specified heights may need to be declared and could be subject to additional conditions.

Tools insurance may be available for hand tools, power tools and portable equipment stored in a commercial vehicle. This can be particularly important for tradespeople who carry valuable equipment between several sites and cannot unload everything after each working day.

Policies can apply security requirements and overnight restrictions. You may need to keep the vehicle locked, activate its alarm, close all windows and store tools out of sight or within a secure internal compartment.

Check the maximum cover limit, individual item limit and policy excess before purchasing insurance. You should also confirm whether theft is covered overnight, whether forcible entry must be evident and whether equipment is protected while temporarily left at a worksite.

Own plant insurance protects eligible machinery and equipment belonging to your business. Depending on the policy, this could include items such as diggers, generators, cement mixers, compressors and other equipment used to complete your work.

Hired-in plant insurance is intended for machinery rented or leased from another business. Hire agreements commonly make the customer responsible for damage, theft and continuing hire charges while damaged equipment is being repaired or replaced.

The cover limit should reflect the greatest total value of hired machinery likely to be under your control at one time. Security conditions, unattended vehicle exclusions, approved locking devices and storage requirements should also be reviewed before taking equipment onto a site.

Contract works insurance can protect eligible building work, materials and certain temporary structures during an active project. It may respond when insured work is damaged by events such as fire, flood, storm, theft or vandalism before the contract has been completed.

Without suitable cover, a contractor could be responsible for replacing materials and rebuilding damaged work at their own expense. The customer’s existing building insurance may protect the original property without covering the new work being carried out.

The policy should reflect your maximum contract value rather than your average job size. You should also check whether materials stored away from the site, temporary works, show homes, speculative building projects or partially occupied properties require separate consideration.

Yes. Activities involving roofs, scaffolding, excavations, basements, welding, blowtorches or other heat-producing equipment can materially affect the risk presented to an insurer. These details should be disclosed accurately when requesting cover.

A policy may contain maximum height or depth limits and specific precautions for heat work. Requirements could include keeping suitable fire extinguishers nearby, clearing combustible materials and checking the work area after the task has finished.

Accepting work outside the declared limits without discussing it with your broker could leave you without the protection you expected. Contact West Craven Insurance before beginning a project that differs significantly from your usual activities or exceeds your current policy restrictions.

Insurers distinguish between labour-only subcontractors and bona fide subcontractors because the relationship and level of control can be different. Labour-only subcontractors often work under your direction, use equipment you provide and may be treated similarly to employees for insurance purposes.

Bona fide subcontractors generally operate as independent businesses, supply their own labour and equipment, and control how their part of the contract is completed. They should usually hold appropriate insurance in their own name and provide evidence of cover.

Both types of subcontractor should be declared accurately. You may also need procedures for checking certificates, cover limits, expiry dates and permitted activities before allowing another contractor to work on your behalf.

Most businesses employing staff in Great Britain must arrange employers’ liability insurance through an authorised insurer. The legal minimum is normally £5 million, although many commercial policies provide a higher limit.

The requirement may extend beyond permanent full-time employees. Apprentices, labourers, part-time staff, temporary workers and some individuals described as self-employed may need to be considered, depending on the working relationship and the control exercised by the business.

Limited exemptions exist, so your circumstances should be checked rather than assumed. Employers must also make their current employers’ liability certificate available to employees and produce it when requested by an inspector.

A commercial vehicle policy protects the insured vehicle according to the selected level of motor cover. It does not necessarily insure tools, customers’ goods, building materials or equipment carried inside the van.

Separate tools or goods-in-transit cover may therefore be required. You should check whether materials are insured while being transported, during loading and unloading, and while temporarily stored in the vehicle between jobs.

The motor insurer must also know how the vehicle is used. Commuting to a single workplace can be treated differently from travelling between customers, carrying trade materials, making deliveries or allowing several employees to drive the vehicle.

You will normally be asked for details about your trade, annual turnover, employee numbers, wages, claims history and years of experience. The insurer may also need to know your largest contract value and whether you work in domestic, commercial or industrial properties.

Further questions may cover subcontractors, work at height or depth, the use of heat, hazardous locations and the value of tools or machinery. Accurate information about security, overnight storage and vehicle use can also affect the terms offered.

Providing complete details helps the insurer understand the business and reduces the risk of unsuitable assumptions appearing on the policy. Tell your broker when your services, workforce, equipment or project sizes change so that the cover can be reviewed.