What tradesman business insurance can cover – simplifying policies for tradies

As a tradesman you know your trade inside and out. But when it comes to tradesman insurance, it may seem like a whole other snag list. As a tradie, you’ve got a lot going on without having to try being an insurance expert. But insurance can be worth it, saving your skin when unfortunate events happen.

To help you understand tradesman insurance more easily, we’ve broken it down so you can find the answers you need and get right back to your graft. Time to look at why you might benefit from trades insurance, what trades insurance can cover and how to choose the right insurance policy for your trade.

Why tradesmen should consider insurance

From brickies and carpenters to plumbers and groundworkers, if you’re running a business or working as a trades contractor, you should always consider if insurance could be beneficial.

Some tradies may ask is it really worth the hassle. And when you consider the risks you face every day, you may decide the benefits are worth it…

Tradesman risks

Depending on your trade, the risks you face might differ. Generally, risks can include:

• A client or passerby trips on your tools or equipment, causing an injury
• You accidentally damage a client’s property
• You injure yourself on-site or travelling to/from work, leaving you unable to do your job
• A client claims your work was faulty, causing them financial loss
• Someone you employ injurers themselves while carrying out work duties
• Your tools are damaged or stolen from secure storage
• Plant machinery that you own or hire for a project is stolen or accidentally damaged
• Your work is damaged mid-construction, and you have to redo work/pay for more materials

Insurance benefits

Some benefits of insurance might seem obvious but it’s easy to forget what it can offer:

• Financial protection – stolen tools, an inability to work, or project disruption can hit you hard. Insurance can help cover costs, taking some of the burden off your shoulders.
• Peace of mind – you’ll have one less thing to worry about (and maybe sleep better) knowing if something was to happen, your insurance has you covered.
• Supported recovery – getting support with claims and associated costs can help you manage incidents quicker, so you can get back to your graft.
• Client trust – when trying to secure clients, having insurance can give them reassurance. Certain cover types can also be a requirement for some contracts!

What can tradesman insurance cover

Tradesmen insurance will often include multiple types of cover under one insurance policy, with optional add-ons to tailor to your trade.

Let’s look at what tradesman insurance can cover and the main policy types you’ll find out there offered to tradespeople.

The following is a general guide to what types of cover trades insurance policies might include. Please always check the policy wording, policy schedule and terms & conditions supplied by the insurer.

Public liability insurance

What is it

Often shortened to PL, public liability for trades can provide cover when a third-party is injured or you cause damage to third-party property.

What can it cover

• Bodily injury or property damage to a third party (excludes employees)
• Compensation payments
• Repair costs
• Professional fees (including. legal)
• Medical fees

Example

A tradesman accidentally drills through a water pipe, places a ladder that falls and damages client property or trips and injures a client with trailing power tool cables.

Employers’ liability insurance

What is it

A legal requirement for any business that employs anyone, this covers legal and compensation costs for claims from employees who are injured or get ill due to their work.

There are some employers/company types that are exempt – you can find more information on page 3 of HSE’s guide for employers.

What can it cover

• Employee injury or illness due to their work or your workplace
• Legal expenses to defend the claim
• Medical expenses you’re liable for

Claim example

An apprentice cuts their hand on a power tool after improper supervision/training, or a trades employee develops health issues (like asthma) from working on construction sites.

Tools insurance

What is it

Tools insurance (or Goods & Tools cover) can cover the costs to repair or replace tools that are stolen or damaged following fire or theft (with signs of forced entry).

Some conditions often apply, like there has to be sign of forced entry or tools can’t be left unattended for more than 24 hours in a secure location outside the home.

It’s also best to keep a copy or log of serial numbers and proof of ownership – this will help with valuing any claim plus some insurers will need you to prove the tools are yours!

We have a whole guide on tools insurance if you want to know more!

What can it cover

• Tools stolen from a secure home or van (with signs of forced entry)
• Damaged caused by theft, attempted theft or fire
• Tools stolen from a secure van overnight (with signs of forced entry)
• Goods damaged due to a road traffic accident, theft or fire

Claim example

Your tools are stolen from your secured garage after a thief breaks through a window, securely packed goods are damaged in a traffic collision or equipment is damaged in a fire.

Professional indemnity cover

What is it

Sometimes referred to as PI, professional indemnity for trades can protect against claims of financial loss caused by your professional negligence while providing services, professional advice or consultancy.

What can it cover

Compensation and legal fees you may need to pay as a result of:

• Professional negligence (advice/designs/specifications)
• Loss of private data or documents
• Financial losses for clients (resulting from your negligence)
• Defamation

Example

You recommend incorrect insulation for a home, wrongly assess installation safety checks or a client claims your designs were faulty, causing financial loss and project delays.

Hired in plant cover

What is it

Hired in plant refers to the plant and machinery that you’ve hired or are responsible for. This trades insurance type can protect against damage, vandalism, theft (with signs of forced entry) or destruction while equipment is in your care.

What can it cover

Costs resulting from an insured event, like:

• Repair costs
• Replacement bills
• Project delays
• Lost revenue

Example

Vandals break into a locked compound and damage a forklift you’ve hired, your hired generator is dropped while being loaded or strong winds cause a tree to fall over and land on a rented cement mixer.

Owned plant cover

What is it

Essentially the same as ‘hired in plant’ cover, owned plant applies to plant and machinery that you or your company own – also protecting from theft (with signs of forced entry), damage or destruction (from vandalism or fire) while on-site, in transit or in storage.

What can it cover

Costs to repair or replace owned plant and machinery, including events like:

• Damage, theft, attempted theft and destruction by fire or vandalism

• Theft from off-site storage (securely locked or guarded & signs of forced entry)

• Damage to security devices

• Loss of keys

Example

Your owned mini excavator is hit by other on-site machinery, an accidental on-site fire destroys your company’s temporary site hut or thieves vandalise your forklift while locked in a secure compound.

Contract works insurance

What is it

Contract works is a type of cover specific to property or construction projects while they’re being built. It offers financial protection to restore a project when an accidental event causes damage or destruction.

What can it cover

Costs to restore the construction project to its state before accidental events like:

• Fire
• Theft (with signs of forced entry)
• Flooding
• Vandalism
• Storms
• Natural catastrophes

Example

Heavy rain floods a construction site, destroying materials and some of completed works, an accidental fire destroys part of a new extension or vandals break new windows and spray the walls of a partially built new home.

Choosing the right trades insurance

Now you’ve got an understanding of the types of cover that might be included with Tradesman Insurance, how do you choose the right policy?

The best place to start is understanding what types of cover you’d benefit from (above). Then you can compare this to what each trades insurance provider offers and if it ticks the right boxes.

A few tips:

• Risks: List any risks you might be exposed to in your line of work. This’ll help you understand what types of cover you need your tradesman insurance to include.
• Limits: The limit is the maximum amount of financial cover your insurer is liable for i.e. if your public liability limit is £1m, that’s the maximum amount you can claim for.
• Conditions and exclusions: Check policy wording for exclusions and conditions. These will determine what might exclude a claim from cover and what conditions you need to meet for a claim to be deemed legitimate.
• Extra cover: Most tradesman insurance policies will combine covers like public liability and tools cover. But check for optional add-ons that can tailor your insurance to your trade.

How to find trades insurance

So, you know what each type of cover is for, and have a few tips on choosing a policy. How do you start looking for trade insurance?

1. Research – look for trades-friendly insurance providers or brokers. Try searching for variations like Trades Insurance, Tradesmen Insurance and Tradesman Insurance.
2. Ask questions, don’t rush –Take your time and find a provider that can answer your questions so you can make sure your trades policy protects you in the ways you need it to.
3. Check the ‘fine print’ – when looking at policies always check the terms and conditions, especially exclusions. This will help you understand your cover and make sure your trades insurance covers your professional circumstances.

Kingsbridge Trades Insurance

At Kingsbridge, we offer our own combined Trades Insurance policy, including Public Liability, Goods & Tools cover and optional Employers’ Liability (where required). Other add-ons include Hired in Plant, Owned Plant, Contract Works, Professional Indemnity (PL is on a claims-made basis).

Our cover also offers perks like:

• Up to £2,500 Goods & Tools cover included as standard

• Cover for tools stolen from a secured van overnight (where there are signs of forced entry & security conditions are met)

• Nil or low excess available for some trades (will be noted in your policy schedule)

• Real support from in-house dedicated experts

• No hidden fees

Have a question? You can contact us and speak to our in-house experts who can help you get the right policy for your trade.

*Disclaimer – this a general guide to insurance cover types and exact coverage, conditions and exclusions may differ per policy and insurance provider.