Trades Insurance

What is trades insurance?

Whether you’re a builder, carpenter, painter and decorator, plumber or electrician, tradesman insurance provides tradesmen with cover for property damage, third-party injuries or damage claims. There are several hazards associated with working within the construction industry, and policies will provide protection for any financial losses that you incur, offering your business a certain level of protection if things go wrong.

What does trades insurance cover?

The type of tradesperson insurance that you will need depends on the type of business that you run and the specific risks that you face. When it comes to considering insurance for tradesmen, you may like to consider the following types of insurance policies:

•         Public liability insurance: Tradesmen are likely to work near other people and their property. Public liability insurance for self-employed tradesman will help to ensure that you’re covered against potential claims, offering protection if your business activities kill or injure a third party (non-employee) or damage their property.
•         Product liability insurance: If a product that you have supplied, manufactured, adapted or imported has caused damage or injury to people or property, this will provide cover for any financial losses.
•         Employers’ liability insurance: This type of insurance is a legal requirement for employers. Whether the member of staff is permanent, temporary, volunteer, contractor or freelancer, you need to have employers’ liability insurance in place, with a minimum level of protection of £5m to cover compensation claims if they get injured or ill at work.
•         Contractors all risk (CAR) insurance: If damage occurs to site materials and works that you have been contracted to undertake, CAR insurance (also known as contract works insurance) will provide protection.
•         Professional indemnity insurance: If your work causes a problem for your client (for example if a construction project is delayed) or you have given negligent advice, this will ensure that you are covered if your client makes a claim against you. Some clients also require construction businesses to have a certain level of cover in place before they start work on a project, so it is worth checking this before you start work.
•         Structural warranty: If your construction business is responsible for building or buying new buildings, then a structural warranty will provide you with 10 years’ worth of protection. This includes cover for latent defects that occur during the build period, but which are not discovered until after completion has taken place and is also known as latent defects insurance.
•         Tools insurance: Provides cover for the things that your business needs to operate, such as mechanical equipment, tools and materials.
•         Plant and machinery insurance: If you use plant and machinery on site (such as diggers, cherry pickers or generators), regardless of whether you own the equipment or you’ve hired it, this will help to cover the replacement or repair costs in the event that it is stolen or damaged.
•         Personal accident insurance: This type of cover will provide financial protection in the event of accidental injury or death on site.
•         Van insurance: Do you use a van as part of your work? Then you will need to ensure that you have the correct amount of van insurance in place to cover you whilst driving it.

These are just examples of some of the types of trades insurance policies that we look after at Woodfield & Riley. As we know that no two businesses are the same, speak to us today to find out which policies will best meet your needs.

The cost of trades insurance

The cost of your premiums will usually depend on the following:

•         Your type of trade: Depending on the work you do (and the level of risk that’s associated with your type of trade), the premium that you pay could be slightly higher than one that is deemed to be less risky.
•         The amount of cover that you need: If you want to add extra cover for things like legal cover or medical costs, then this is something that will also affect your premiums.
•         The size of your business: If you run a large business with several employees, you will need to ensure that you take out an adequate amount of cover. In addition, it is also worth keeping in mind the types of projects that you work on, as well as the turnover of your business and how many years you’ve been trading for.
•         The equipment that you use: If you need to use more expensive machinery as part of your work, such as forklifts, cranes or diggers, these will cost more to protect than just power tools.
•         Where your business is based: Your premiums could also vary depending on the location of your business – for example, if there is a high risk of flooding.

At Woodfield & Riley we understand that cost is important to your business, but it is crucial to ensure that you are properly protected in line with the risks your business faces. With that in mind, we will take the time to understand the specific needs of your business and recommend the amount of cover that is best suited to you.

What else do I need to know about trades insurance?

There might be some exclusions that won’t be covered by your tradesman insurance policy.

These could include:

•           General wear and tear: The normal deterioration of your equipment through everyday use is unlikely to be covered by your tradesman insurance policy.
•           Security features: If your policy specifies that you need to have certain security features in place (such as locks), your policy may be void in the event of any claims for damage, theft or loss.
•           Limits for single items: Some policies may have single items limits, and if you have already made a claim for an item of equipment then you may not be able to make further claims.
•           Irresponsible behaviour: If any injuries have occurred due to the use of alcohol or drugs whilst working, you might not be able to make a claim.

To ensure that you have a clear idea of what is and isn’t covered by your trades insurance policy, make sure you take the time to read your policy documents properly in order to avoid any nasty surprises.

How can I get trades insurance?

Woodfield & Riley have a team of specialist advisers ready to help you get the right protection in place for your business.  

We will take the time to understand the specific needs of your business and are committed to delivering a completely personalised service, ensuring that you have the best possible cover at the best possible price.

To find out how much peace of mind costs, contact Paul by calling: 0800 0000 000.