Having work performed in the home by qualified tradesmen can be convenient, but there could be financial consequences if anything goes wrong. Homeowners will need to ensure that they are adequately protected from any eventualities. Tradesmen that enter a client’s property to perform work will need to have the correct tradesmen insurance in place.
Making sure that they have the right coverage can save the homeowner from a lot of headaches and expenses later on. Any tradesman that is carrying out tasks or repairs at a client’s property should at least have public liability insurance. This type of insurance will cover the cost of any claims that arise from loss or damage to the customer’s premises and pay for expensive repairs or compensation sums. (Read more about tradesman insurance here.)
Before hiring tradesmen, it is worth checking that they have professional indemnity cover in addition to public liability insurance. For example, suppose the work or materials are not up to standard or issues occur from professional designs or recommendations that your tradesman made. In that case, this cover can pay for claims that arise from professional negligence, even at a later date.
It should be noted that neither of these 2 types of insurance is mandatory, but using tradesmen that have them in place can save many problems in the long term. It can also indicate that they are a professional outfit with adequate accident and claims coverage.
Do tradesmen need public liability insurance?
For tradesmen that perform work at a client’s home or property, public liability insurance will be needed to shield against claims. Any incidents or accidents that happen during the course of work can result in a claim against the tradesmen, and they will be responsible for covering the cost.
Public liability claims can be brought against tradesmen for things like personal injury to the homeowner. These are often due to trips and falls caused by cables or tools laying on the floor or damage from falling debris. The insurance will also pay for damage to property or personal belongings.
The average cost of a public liability claim exceeds £13,000, so having insurance will protect tradesmen and their personal assets. Along with covering the cost of expensive settlements and compensations claims, public liability insurance will also pay for defending a claim in court. Legal expenses, court costs, and solicitors fees can soon add up and paying out of pocket is not possible for most tradesmen.
Do tradesmen need employers’ liability insurance?
Self-employed tradesmen that hire and employ other staff will need to have employer’s liability insurance. Whether performing work or hiring staff for administrative or support tasks, having any kind of employee will require tradesmen to obtain employers liability coverage.
Should your worker be injured on the job and make a claim, this insurance will shield against expensive claims. Even if the staff you hire are for a one-off job or only a few hours per week, this kind of insurance will still be needed.
Proof of employers liability insurance may be required at any time, so tradesmen that need this specific coverage will need to keep a copy of their certificate. Failing to produce proof of insurance can result in hefty fines. Fortunately, digital certificates are acceptable, meaning that copies can be easily saved to a mobile device.
What other types of insurance do tradesmen need?
Whether operating as a sole trader or self-employed tradesmen that employs other people, there are a few other types of insurance that should be considered. For example, in addition to public liability, employers liability and professional indemnity, insurance may be required to cover things like equipment and tools or to insure vehicles.
Additional insurance cover can include:
- Tools and equipment
- Business vehicle
- Personal accident
- Contact works
Specialised items needed to perform work can often be expensive to replace. If tools get lost or damaged or go missing due to theft, having tools and equipment insurance can help cover the expense associated with replacement. This coverage can protect items whether they are on the job site or stored in a garage or vehicle.
Tradesmen that use a company van or vehicle to travel to and from work locations will need to obtain business vehicle insurance to provide coverage against accidents, theft, and damage not only to the company vehicle but to pay for damage to other road users.
Personal accident cover will cover loss of earnings and other items for tradesmen who find themselves unable to work due to job injury or critical illness. This can be useful for tradesmen that would be unable to pay for necessary expenses if rendered incapable of working.
Contract Insurance provided protection for work at a job site. Damage and losses that occur due to events like vandalism or fire will be covered under this type of business insurance.
- Tradesman insurance: https://www.nimblefins.co.uk/business-insurance/tradesman-insurance
- Employers’ liability insurance: https://www.keystonelaw.com/keynotes/is-public-and-employers-liability-insurance-compulsory
- Other types of tradesman insurance: https://www.getwork.co.uk/legal/what-business-insurance-should-a-tradesperson-have/