Tradesman Insurance: Have you got what you need?
As a tradesman, making sure that you have appropriate insurance cover to meet your business's needs is essential. Whatever your trade, it's also worth reviewing whether you have the correct policy to suit your changing requirements. Having the right tradesman insurance could save you time, money and stress if you ever need to make a claim.
Assessing your risk
Being a tradesman can be a risky business so making sure that members of the public and your clients are as safe as possible should be one of your top priorities. Accidents do happen and that's where public liability insurance comes in. It protects your business against claims made by members of the public for damage to their property or personal injury because of your business's work. If members of the public, clients or customers visit your premises or you visit theirs then you should seriously consider taking out public liability insurance. To help you decide the best policy for your business, ask yourself the following questions.
- What's included in the policy?
- Is the level of cover enough for your business?
- Is the level of cover sufficient to work for your clients?
- Can you change your level of cover depending on your needs?
- What happens if you have more than one trade? Will these all be covered on the policy?
- Will you still be covered if you make changes to your business?
Your type of business
Carpenter, gardener, bricklayer, plumber... whatever your trade, if you employ staff you need Employers' Liability insurance and be insured for a minimum of £5 million. If you don't have it then you'll be breaking the law. Questions to ask before taking out a policy can be found below.
- What level of cover is provided?
- What's included in the policy?
- What's the maximum number of people that can be covered for manual and/or clerical work?
Tools and equipment
Whatever your trade, your tools are your livelihood and keeping them secure should be a top priority. Without your tools your business could be majorly disrupted so it's important that you take out adequate insurance cover for your work tools and equipment. Find out the answers to the following questions to make sure the insurance meets your needs.
- What's included in the policy and what's expected from you? For example, if tools are left on site what are the minimum security requirements? Will equipment stolen from a parked or in transit vehicle be covered?
- What's the value of your work tools and equipment? It's important that you don't underestimate this as it may leave you out of pocket when you need to replace items.
- How will damaged, lost or stolen items be replaced? New for old? Replacement offered or cash provided so you can purchase your own?
- What insurance is available for hired equipment? Will separate insurance be needed?
It's worth taking the time now to make sure that you have the correct insurance for all your business needs and so that you can comply with your legal obligations. Taking out appropriate cover and reviewing it regularly could save you time, hassle and expense in the future if you ever needed to make a claim.