What insurance does a tradesman need?

Insurance sounds like a good idea, but how do you know what insurance you need as a tradesman?

No two trades are exactly the same and the insurance that suits a builder won’t necessarily suit a decorator or groundworker. So, we’re here to help you understand what matters most for your specific line of work.

In this guide, we’ll break down what insurance a tradesman might need, explain how different trades can figure out the best cover based on their risks, and explore the ways to find the best policy to protect your trades business.

*Disclaimer – This guide provides general information about trades insurance. Cover, limits, conditions and exclusions vary between policies and providers. Always check your policy wording and schedule for full details.

What insurance do tradesmen need?

What insurance a tradesman should consider will completely depend on the mix of tools they use, environments they work in and the risks they face. There isn’t one solution to answer what insurance each tradie needs – the insurance you might need will differ from the next guy. But, there are a few common insurance policies that many tradespeople benefit from the most:

• Public liability insurance (PL) – can cover repair costs, compensation and professional fees when a third-party is injured or you cause damage to third-party property.
• 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) – normally covers hand tools and power tools like drills, hammers, sanders and saws.
• Employers’ liability insurance – a legal requirement for most businesses that employ staff, unless an exemption applies. It can cover legal and compensation costs for claims from employees who are injured or get ill due to their work.
• Owned plant cover – protects plant and machinery you own, covering the cost of repairs and replacements if they’re damaged, vandalised, or stolen (with signs of forced entry).
• Hired in plant cover – can cover plant and machinery you hire/lease, offering financial support for repairs and replacements if they’re damaged, vandalised, or stolen (with signs of forced entry).
• Professional indemnity (PI) – can protect against claims of financial loss caused by your professional negligence while providing services, professional advice or consultancy.
• Contract works insurance – can cover construction projects while they’re being built. It offers financial protection to restore a project when it’s damaged or destroyed by events like flooding, fire, storms, vandalism or theft.

Learn more about trades insurance

If you want to dive deeper, we’ve got plenty of guides including what trades insurance can cover and who needs trades insurance.

Understanding what insurance each trade needs

Like we said, every tradesman will need their own combination of insurance to suit their individual risks – it’s just the nature of the game.

Whether you’re an electrician wiring a new build, a plumber tackling emergency callouts, or a carpenter crafting bespoke fittings, it’s the risks you face that can guide you to the right trades cover.

To help you work out what options could be best for you, we’ve put together a series of questions to demonstrate which policies to consider…

1. Do you work on/with client property?

→ You should consider public liability insurance

Examples: 

• A client is injured after tripping on your discarded tools
• You knock over and break valuable items while moving equipment through a client’s hallway
• You accidentally spill materials over a client’s carpet, leaving a permanent stain (e.g. paint, plaster, wood varnish, paint stripper etc.)

2. Do you use your own tools of trade?

→ You should consider tools insurance

Examples: 

• Your tools are stolen from your secured garage after a thief breaks through a window
• Your equipment is damaged in an accidental on-site fire
• Your tools are stolen from a securely locked toolbox in the cargo area of your van

3. Do you employ any staff?

→ You legally need employers’ liability insurance

Examples:

• An apprentice cuts their hand on a power tool due to inadequate training/supervision
• An employee develops health issues (asthma) from working on construction sites
• A worker strains their back while lifting heavy materials on a building site

4. Do you provide professional advice or consultation?

→ You should consider professional indemnity insurance

Examples:

• You miscalculate structural measurements resulting in the wrong materials being ordered, the project being delayed and the client facing financial losses
• You incorrectly advise on the best fittings or materials to use (e.g. radiator types, boiler capacity, roof insulation, render options etc.), causing the client financial loss to replace or repair the work
• You misinterpret project designs, completing the work to incorrect specifications, leading to the client having to pay to get the work redone

5. Do you own or hire plant equipment or machinery?

→ You should consider owned or hired in plant cover

Examples:

• A mini excavator is accidentally hit by other on-site machinery
• Severe weather causes a tree to fall over and damage plant equipment
• A cement mixer is vandalised after miscreants break into a locked work site

6. Do you work on long-term construction projects susceptible to delays?

→ You should consider contract works insurance

Examples:

• Vandals break into a partially built home, breaking windows and spray-painting walls
• An unknown wiring fault causes a fire and destroys part of a new extension
• Heavy rain completely floods a site, destroying materials and some of the completed works

Choosing the right trades insurance policy

Now that you’ve got a feel for the different types of trades insurance and what risks you might need to cover, the next question is: how do you pick the right policy?

The best approach is to look at what each provider offers and see which policy lines up best with your work.

Here are a few things worth thinking about:

• Risks: Think about the risks you come across day to day. Making a quick list can really help you figure out which types of cover are essential for your trade (using the above guide will help).
• Limits: Every policy has limits – the maximum amount your insurer will pay out if something goes wrong. For example, a £1 million public liability limit means you’re only covered up to that amount for a valid claim.
• Conditions and exclusions: It’s never the most exciting bit, but checking the policy wording is important. Exclusions tell you what isn’t covered, and conditions explain what you need to do to make sure a claim is more likely to be accepted.
• Extra cover: Many tradesman policies bundle common covers like public liability and tools insurance. But it’s always worth checking whether there are optional add-ons that can tailor the policy more closely to your trade.

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). Plus, you can tailor it with optional add-ons like Hired in Plant, Owned Plant, Contract Works, Professional Indemnity (claims-made basis), so you get the cover you need under one policy.

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(with signs of forced entry)
• 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.

Trades insurance FAQs

Is it illegal to trade without insurance?

The main insurance type it’s illegal to trade without is employers’ liability, which is required if you employ anyone. Other types like public liability or tools insurance aren’t legally required but are strongly recommended because they protect you if something goes wrong.

How much does trades insurance cost?

The cost can vary a lot depending on things like your trade, the risks involved, the level of cover you choose and whether you add any optional extras. A low‑risk trade with basic cover might pay a relatively small premium compared to a higher‑risk trade needing specialist cover. If you’re interested in a quote for your trade, get in touch and our in-house team can help.

What insurance do I need as a tradie?

Most tradespeople start with public liability insurance because it protects you if you accidentally cause injury to someone or damage their property. From there, the cover you need depends on how you work. For example:

• Tools cover if you use your own tools of trade
• Employers’ liability insurance if you employ anyone
• Professional indemnity if you provide advice, designs or recommendations
• Plant cover if you use machinery

Do subcontractors need their own insurance?

Subcontractors normally need to hold their own insurance as they’re not always covered by a main contractor’s policy, especially if they’re bona fide subcontractors who work independently. Most subcontractors need their own public liability insurance, and employers’ liability if they hire others. Labour‑only subcontractors might be covered by the contractor’s policy, but it depends on the arrangement and your policy wording so it’s always best to check with your insurance provider. You can find more details in our guide ‘Do subcontractors need their own insurance?‘.

Is tradesman insurance the same as public liability insurance?

Not exactly. Public liability insurance can be a policy in its own right but tradesman insurance typically bundles several covers together. That can include public liability as well as tools cover, employers’ liability and more. Public liability is just one element of the full package.

What does trades insurance cover?

Tradesman insurance can cover a whole range of risks depending on the policy you choose. Common risks covered include:

• Injuries to clients and members of the public or damage to their property
• Damage, loss or theft of tools and equipment
• Injuries to employees
• Mistakes in advice or designs
• Damage to or theft of plant and machinery
• Delays to in-progress physical construction projects

Who needs tradesman insurance?

Trades insurance is for anyone in a hands‑on trade who faces risks like working at client properties, using power tools, offering skilled manual work or operating plant machinery. This can include builders, electricians, carpenters, painters, plumbers and other skilled trades. Check out our full guide on who needs trades insurance for more information.

What are the benefits of trades insurance?

Tradesman insurance gives you peace of mind and financial protection if something goes wrong. It helps cover the cost of accidents, damage, legal fees, stolen tools and even claims made against your work. It also helps you appear more professional – many clients, trade bodies and local authorities contractually require you to hold certain types of insurance.