The types of tradesmen insurance

If you’re wondering what tradesmen insurance covers, we hope you’ll find some of the following FAQs and answers useful.

Why might I need tradesmen insurance?

Tradesmen insurance cover exists in order to protect you against some of the unanticipated perils and associated costs that might hit you when you’re operating your trades-related business.

Examples might include the loss or theft of your tools or one of your customers suing you for compensation if something goes wrong.

Where can I find this type of policy?

We can assist. Just contact us at Specialist4Business and we’ll outline your options once we know something of the precise nature of your business operations and the financial risks they might entail for you.

Why does a tradesmen need product or professional liability cover?

A lot depends here upon just what you consider your trade and business function to be.

For example, if you’re a carpenter / joiner hand-producing garden furniture, should one of your pieces collapse one day and injure someone (however unlikely you might think that possibility), they may well sue you for compensation.

If you’re, say, an electrician, you may be professionally liable for bad advice you give a customer relating to product installation, if that subsequently leads to a fire.

Court awards in these areas can be staggeringly high and you might only be able to survive, financially, if you have insurance assistance.

I only use casual contract helpers. So, surely I don’t need employers’ liability cover?

This is a very complex area of law but the above assumption might not be correct.

If you have employees, the law is clear. Apart from certain very rare cases, you will be legally obliged to provide employers’ liability insurance. A failure to do so could lead to substantial fines.

In many cases though, you may have similar obligations if you’re using contract or agency staff on a temporary or casual basis. It might also be risky to assume that you have no liabilities here either when using self-employed contractors.

If in doubt, consult an expert in employment law and incline towards assuming insurance cover will be required.

Do I need van insurance?

Yes – at least to a specified level.

As you probably know, the law requires you to have at least third party liability cover if your van is on the public road.

There are a whole host of risks to your van and its contents though that will not be covered by such minimum protection. Van insurance offers a number of additional protections, should you decide you need them (e.g. a replacement vehicle following an accident or theft).

Van theft and theft from vans, is a huge problem in the UK. This risk shouldn’t be taken lightly.

Can this cover protect me against invoice non-payment?

Yes and no – it depends upon what is meant by that.

Legal or contractual disputes between you and a customer over the non-payment of one of your bills typically wouldn’t be covered.

It may be possible to cover your liabilities (under Contracts Cover provisions) if you were unable to finish work in line with your contractual obligations due to reasons beyond your control – e.g. perhaps a site fire.

Aspects of your legal expenses might be covered in situations where, after submitting your bill, you were being counter sued under product liability and were defending yourself. That though wouldn’t be directly related to you being unable to obtain payment of an invoice.

This is a complex area. Do please contact us at Specialist4Business for a further discussion of your concerns and requirements here.