What Insurance Do You Need as a Tradesperson

1. What does trade insurance cover?

Trade insurance is designed to protect you, your tools, and your business when things don't quite go to plan. Accidents happen, even to the best of us. Imagine your client tripping over a cable, a burst pipe during a fit-out, or tools nabbed from your van overnight. Insurance is a safety net that helps you get back to work quickly should the worst happen. Most policies bundle a few key types of cover together.

Public Liability (PL)

A tradesperson’s public liability insurance protects you if a member of the public or a client is injured, or their property is damaged due to your work – say if a customer slips on a wet floor you've just laid, or you accidentally put a screw through a pipe. PL cover can pick up the cost of claims and legal fees.

Employers' Liability (EL)

Regardless of whether you employ a part-time labourer or an apprentice, employers' liability cover is a legal requirement in the UK. It covers your staff if they're injured or become ill as a result of working for you. Without it, you could face a hefty fine, so this one's non-negotiable the moment you take someone on.

Professional Indemnity (PI)

This one's often overlooked. Professional indemnity cover protects you if a client claims your advice or workmanship has caused them financial loss, like specifying the wrong product, making a design recommendation that goes wrong, or a client disputes the quality of your work.

Tools Insurance

Your tools are your livelihood. Tools insurance helps cover the cost of replacing or repairing them if they're stolen or damaged. Given how much a decent set of kit costs these days, this cover can pay for itself if your van were to get broken into or your kit were to fail on-site.

Watch Out For Exclusions

Insurance isn't a catch-all solution. The details are in the small print, and it pays to read them carefully before you sign up…

• What? Where? How?

  Policies come with conditions attached, like how to store your tools overnight, which types of work are included, or proof of purchase you'll need to make a claim. So, if you accidentally damage a water pipe while fitting a kitchen and cause flooding, tradesman public liability insurance could cover repair costs and compensation.

• Some Things Are Out Of Your Control

  Insurance protects against more than just your own mistakes. Events outside your control, like vandalism to hired machinery on-site, can land you with a serious bill. Add-ons like hired-in plant cover are a no-brainer if you regularly work with equipment you don't own. Always be prepared for the unexpected.

2. What To Look Out For When Comparing Policies

When you're shopping around for business insurance, I know it's tempting to just go for the cheapest option. But price isn't everything; what matters most is whether the policy actually covers the work you do, day in, day out. Package policies can make life simpler by combining multiple covers into one policy and one payment. Remember, checking exclusions and conditions, such as overnight tool security or proof of purchase requirements, is essential.

Cover Limitations

A policy might look solid on paper, but if the maximum payout doesn't reflect the scale of your jobs, you could find yourself out of pocket. Consider whether add-ons like contract works cover or plant cover are needed, so you factor in how to price a job and make a margin.

Specific Policies For Your Trade

Not all trades carry the same risks; a joiner working on a kitchen fit-out has different exposures to a groundworker, or a painter and decorator. Speaking to a specialist broker will ensure your policy reflects your risks rather than a one-size-fits-all solution, which might not cover you properly.

• For Instance

  For a joiner or carpenter, trade insurance typically runs between £140 and £600 a year, depending on factors such as turnover, staff numbers, and the type of work undertaken, offering peace of mind.

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