How to compare tradesman insurance quotes: what to look for before you buy
Received a few tradesman insurance quotes but not sure which one offers the best value? You’re not alone. It can…
Received a few tradesman insurance quotes but not sure which one offers the best value? You’re not alone. It can be difficult to compare trades insurance, particularly when policies appear similar on the surface but offer very different levels of protection.
While it’s tempting to focus on the lowest premium, choosing cover based on price alone could leave your business exposed if something goes wrong. One quote might look like a bargain until you discover it excludes certain types of work, has a high excess, or doesn’t include cover for your tools.
This article explains what to look for when comparing trades insurance so you can feel more confident you’re choosing the right cover for your business, not just your budget.
Disclaimer: This is a general guide to business insurance for tradespeople. Always check your policy documents or contact your insurer for more accurate details.
Quick tips: What should you compare when reviewing tradesman insurance quotes?
Before you start looking at prices, it’s worth understanding the main factors that separate one policy from another.
When shopping for trades insurance, compare:
- The level of public liability cover
- Any additional covers included
- Policy exclusions
- Policy conditions
- Excess amounts
- The types of work covered
- The overall value, not just the premium
Looking at these factors together will give you a much clearer picture of which insurance policy offers the protection your business actually needs.
Find out how much your insurance could cost
Full guide to comparing trades insurance
1. Start by thinking about the work you do
Not all trades businesses face the same risks.
For example, a self-employed electrician might have different insurance needs to a builder managing larger projects or a plumber carrying expensive specialist equipment. The right policy for one trade might not be suitable for another.
Before comparing quotes, consider:
- The type of work you carry out
- Whether you work on domestic or commercial projects
- Whether you employ staff
- If you use subcontractors
- The value of your tools and equipment
- Any insurance requirements imposed by clients or trade bodies
Getting a clear picture of your business activities and the risks you face helps make sure you’re comparing policies that genuinely protect your business. That includes taking into account any future changes you might have coming up like larger projects or business growth.
To get you started, we’ve put together a handy guide to what insurance tradesmen need.
2. Compare the cover, not just the premium
One of the biggest mistakes tradespeople make is assuming that every quote includes the same cover.
In reality, policies can vary significantly.
When reviewing your options, look beyond public liability insurance and check whether the quote includes other cover your business might need like employers’ liability insurance, plant machinery insurance or tools insurance.
Insurance you might want to consider:
Public liability insurance
Public liability insurance can help protect your business against claims of third-party injury or property damage caused by your work or business activities.
Tools insurance
Your tools are often essential to earning a living. If they’re stolen, damaged or lost, tools insurance can cover the cost to repair or replace them. If you regularly carry tools and materials in a van, you should also check if cover includes tools in transit insurance or tools stolen from your van overnight.
Contract works insurance
This can help protect work in progress against accidental damage, theft or loss before a project is completed. It normally doesn’t include damage to existing structures so make sure you’re clear what’s excluded in case you need to make a claim.
Employers’ liability insurance
Employers’ liability insurance is a legal requirement for most UK employers. If you hire anyone, including casual or part-time staff, it can cover compensation claims from employees who are injured or taken ill because of their work for you.
In the UK, the legal minimum cover is £5 million, and failing to have it can lead to fines of £2,500 per day.
Find more details in our guide to employers’ liability insurance for trades businesses.
Plant machinery insurance
If you own or regularly hire machinery and specialist equipment, plant machinery insurance can help protect against unexpected costs if something goes wrong.
Professional indemnity insurance
If your work includes providing advice, specifications or designs, professional indemnity insurance might be worth considering. It can cover legal costs and compensation if a client claims against you for financial losses caused by errors in your work.
3. Check the levels of cover included
Another mistake is assuming all policies are the same. Two policies that both include public liability insurance and professional indemnity could each have different cover limits (the maximum financial amount your insurer can cover you for). One could cover your business’ risks and the other might not be enough.
For example, common public liability cover limits many providers offer include:
- £1 million
- £2 million
- £5 million
- £10 million
If you take out a £1 million public liability policy when a £5 million cover limit is more suitable for the projects you work on, you could be left underinsured if you need to make a claim.
Instead of simply asking how much a policy costs, ask whether the level of cover is appropriate for the jobs you take on.
4. Don’t let insurance costs be the only deciding factor
We all want to keep costs under control, but choosing insurance based purely on price can sometimes prove costly in the long run.
There are several reasons why one quote may be significantly cheaper than another.
It could include:
- Lower cover limits
- Higher excesses
- Fewer included covers
- More exclusions
- Stricter policy conditions
For example, a policy with a lower premium might seem attractive until you discover it won’t provide the level of cover required by a client contract or places restrictions on the type of work you carry out.
The lesson to learn is that the best policy isn’t necessarily the cheapest. It’s the one that provides the right cover for the way your business operates.
Check out our guide to cheap trades insurance for a deeper dive into what to look out for.
5. Look closely at policy exclusions
Understanding what isn’t covered is just as important as understanding what is.
Every insurance policy contains exclusions, outlining situations where cover may not apply.
These can vary between UK insurers but normally relate to:
- Certain types of hazardous work
- Heat-related activities
- Work above specific heights
- Particular materials or processes
- Certain subcontractor arrangements
- Specific project types
Two quotes may look almost identical on price, but a closer look at the exclusions could reveal important differences.
Taking the time to review them now could save a lot of frustration later.
6. Check the policy conditions
Insurance policies may also include conditions that need to be followed for cover to apply.
This is particularly common for tools insurance and theft-related claims.
Examples might include requirements relating to:
- Vehicle security
- Overnight tool storage
- Locked premises
- Site security
- Alarm systems
- Immobilisers
7. Don’t overlook the excess
The excess is the amount you pay towards a claim before your insurer contributes.
It’s often one of the most overlooked parts of an insurance quote, yet it can have a significant impact if you need to use your policy.
When comparing quotes, check:
- The compulsory excess
- Any voluntary excess selected
- The total excess payable if you make a claim
A policy with a slightly lower premium may come with a higher excess, meaning that while you save on your payments today, you could pay more out of your own pocket later if something goes wrong.
Common mistakes when comparing trades insurance quotes
There are a lot of factors that go into choosing the right insurance for your business. A few mistakes to avoid include:
- Only looking at the annual premium – While price matters, it shouldn’t be the only factor that influences your decision.
- Choosing the lowest level of cover – A small saving may not be worth it if it leaves your business underinsured.
- Ignoring exclusions – Exclusions can significantly affect how useful a policy is in practice.
- Overlooking policy conditions – Particularly where tools, vehicles and equipment are concerned.
- Assuming all quotes include the same cover – Different insurers may include different cover options as standard.
Questions to ask before buying tradesman insurance
Comparing trades insurance can sometimes feel like comparing apples with pears. Policies often look similar until you dig into the finer details, and that’s where the real differences tend to emerge.
Before making your decision, ask yourself:
- What unique risks do I need to protect my business against?
- Do policy cover limits meet my needs?
- Am I legally required to have employers’ liability insurance?
- Are my tools covered?
- What excess would I have to pay if I made a claim?
- Are there any exclusions relevant to my trade?
- Are there any policy conditions I need to follow?
- Does the policy cover all the work I undertake?
- Am I choosing based on value rather than price alone?
If you can confidently answer these questions, you’re already in a much stronger position to choose the right policy.
Flexible business insurance for your trade
At Kingsbridge, we know every trade needs its own combination of cover. That’s why we offer a flexible Tradesmen Insurance policy designed for your trade so you’re only paying for the cover you need and nothing you don’t need.
It bundles core covers like Public Liability Insurance, Goods & Tools cover and Employers’ Liability (where legally required) and can be modified with optional add-on covers including plant equipment cover, Contract Works and Professional Indemnity Insurance.
Plus, it 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 and security conditions are met)
- Nil or low excess available for most trades
- Real support from in-house dedicated experts
- No hidden fees
Get in touch to speak to our team of experts and get a quote today. They can talk you through your options and help you find the best cover to protect your business – they’re only a phone call away on 01242 312 604.
