Who needs trades insurance?

If you work in the trades, chances are you’ve already heard people chatting about tradesman insurance, but have been left wondering who it’s actually for.

In this guide we’ll break down who needs trades insurance, recap what it covers and how to find the right policy for your business.

Disclaimer: This is a general guide to insurance. Insurance requirements will differ based on individual circumstances. Always check with your insurance provider and your policy documents for exact coverage details.

What is tradesman/trades insurance?

To quickly recap, tradesman insurance is essentially a package of cover for anyone working in the trades. It’s there to protect your tools, your projects, and the people around you when things don’t go to plan, like accidents, injuries, or accidental damage on-site.

It normally bundles different types of standard cover into one policy like public liability, tools insurance and employers’ liability. You can even add optional cover like contract works and plant cover to tailor it to your trade.

Who needs trades insurance?

Who needs trades insurance hinges on the risks you face. Generally, it’s designed for anyone who provides manual/skilled work, visits client property, uses power tools, or hires/owns plant machinery.

A few groups of trades who might need it include:

• Manual/skilled workers – Hands-on tradies who often use power tools and hand tools like builders, electricians, carpenters, painters, plasters or joiners.
• Mobile specialists – Tradies providing mobile services like window cleaning, installation maintenance, or servicing like locksmiths, solar panel specialists or general handymen.
• Subcontractors – Those working for main contractors, often needing to contractually prove they hold their own insurance.
• Construction employers – Any business employing staff – they’re legally required to hold employers’ liability insurance.
• Other sole traders/self-employed – any other trade who works alone in a specialist hands-on field.

Whether you’re rewiring a kitchen, fixing a leak, putting up stud walls or painting someone’s front room, one small mistake (or one unlucky moment) can land you with a bill that makes your eyes water. That’s why having the right cover behind you isn’t just a box‑tick — it’s a proper safety net for you, your tools, and your business.

What type of insurance does each trade need?

When it comes down to it, once you know if you need trades insurance, the next question to ask is what insurance you should consider.

There’s no one‑size‑fits‑all solution – every trade has its own hazards, tools, and ways a job can go sideways. That means each trade needs its own mix of insurance to stay properly covered.

A plumber isn’t facing the same risks as a sparkie, and a chippy doesn’t need the same cover as a groundworker hauling plant around.

As a general rule of thumb, you can ask yourself these questions:

• Do you work on/with client property? Consider Public Liability insurance.
• Do you use your own tools of trade? Consider Tools Insurance.
• Do you employ any staff? You legally need Employer’s Liability Insurance.
• Do you provide professional advice or consultation? Consider Professional Indemnity insurance.
• Do you own or hire plant equipment or machinery? Consider Owned or Hired In Plant cover.
• Do you work on long-term construction projects susceptible to delays? Consider Contract Works insurance.

Is tradesman insurance required?

While trade insurance itself isn’t necessarily “required”, it can package up policies that are either legally required for businesses or contractually required per project.

What insurance is legally required for trades?

The only cover you legally must hold is employer’s liability if you employ anyone – that includes full-time staff, part-time workers, and apprentices and trainees (if they’re paid).

There are requirements and exemptions of employers’ liability that you should keep in mind but by and large, most businesses who employ staff legally need to have it.

What other insurance are trades required to hold?

Even though you might not legally need other insurance types like public liability, there may be instances where you’re expected to prove you’re covered:

• Contractual requirements – it’s not unheard of for clients to stipulate in your contract that you need to hold cover like public liability insurance with a specific minimum cover limit.
• Trade body membership – many trade associations that tradies sign up with for credibility will need proof of insurance, like the Federation of Master Builders who require you to hold public liability.

Choosing the right trades insurance

Getting trades insurance might not be a simple off-the-shelf purchase, but it doesn’t have to be complicated either.

The first step will be to understand different types of insurance that can cover tradies – luckily we’ve popped together a handy guide to trades business insurance.

Then you just need to find a package policy that ticks the boxes for your trade.

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 typically 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 to tailor your insurance to your trade.

Trades cover with Kingsbridge

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 (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 and 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.

Who needs trades insurance – FAQs

Do sole traders need trades insurance?

Trades insurance isn’t legally required for sole traders in the UK. However, many self-employed tradespeople choose to have cover in place because their work may involve risks like property damage, injury to third parties, or tool theft. Insurance may help cover certain financial losses if something goes wrong – subject to policy terms, conditions and exclusions.

Is tradesman insurance legally required in the UK?

Most types of polices included with trades insurance aren’t legally required in the UK. The main exception is employers’ liability insurance, which is required if a business employs staff. This cover is designed to help with compensation claims and legal costs if an employee becomes injured or ill because of their work.

What trades typically use trades insurance?

Trades insurance is commonly used by builders, electricians, plumbers, carpenters, decorators, roofers, plasterers, and similar skilled trades. These roles often involve working on client property, using tools or machinery, or operating in environments where accidents may happen. Insurance may help cover certain risks associated with this type of work.

Do subcontractors need their own trades insurance?

In many situations subcontractors may be required to hold their own insurance. Contractors or clients may require proof of cover before allowing subcontractors to work on a project. This helps ensure each business is responsible for its own risks and potential claims. We go into more detail in our guide to subcontractor insurance.

Do tradespeople need public liability insurance?

Public liability insurance isn’t a legal requirement for most trades in the UK. But, it’s commonly recommended because it’s designed to help cover claims if your work causes injury to a third party or damage to their property. Many clients or contractors may also ask to see proof of public liability cover before work begins.

What insurance do tradespeople usually have?

Many tradespeople choose a combined trades insurance policy that brings several types of cover together. This often includes public liability insurance, tools insurance, and employers’ liability insurance (if staff are employed). Depending on the trade, additional cover like plant insurance or contract works cover might also be an optional add-on.

Does trades insurance cover tools?

Many trades insurance policies include tools cover or allow it to be added to the policy. This type of cover is designed to help with the cost of replacing or repairing tools if they’re stolen, lost, or damaged. The exact protection provided will depend on the policy wording, limits and conditions.

Does trades insurance cover poor workmanship?

Trades insurance doesn’t usually cover the cost of correcting poor workmanship itself. However, it may help cover damage that results from faulty work, like damage to a client’s property. Always check the policy wording or contact your insurer to understand what’s included and excluded.

How much public liability cover do tradespeople need?

The level of public liability cover needed can vary depending on the type of work carried out and any contract requirements. Many tradespeople choose limits between £2 million and £10 million. The appropriate level of cover will depend on the business activities and potential risks involved – ask your insurer for guidance if you’re unsure.

Can you work without trades insurance?

In many cases it’s possible to work without trades insurance if you don’t employ anyone. However, without cover you may be responsible for legal costs, compensation claims, or repair costs if an incident occurs. For this reason, many tradespeople choose to have insurance in place to help manage these risks.