Business Tradesman Insurance - What are the Benefits?

Most tradesmen understand that in business you need to expect the unexpected, and while your biggest and most lucrative commission yet may be just around the corner, so might be the potential for bankruptcy. In order to help keep your business life as stress free as possible, it is crucial that you have the correct business tradesman insurance policy.

There are many types of insurance policies designed to suit different trades -  builder insurance or plumber insurance, for example. By taking out business tradesman insurance for your trade, you are buying protection in the event of a disaster affecting your business.

Whether you are a builder, painter, plumber, electrician or carpenter, most good tradesman insurance policies can be tailored to suit your individual needs.

To get the best business tradesman insurance, you first need to assess the risks to your business and the legal requirements that determine the insurance cover you need.

If you employ someone, you are legally required to have employers’ liability insurance, which covers your legal liability for claims made by employees for injuries or illnesses they may suffer as a result of working for you.

As an employer, you are at risk of being sued if an employee is injured as a result of your negligence or breach of duty. If their injury claim is successful, you may also face a claim from the NHS for the costs of hospital treatment.

So as you buy business tradesman insurance, make sure it covers your legal obligations as an employer and includes cover for legal fees, costs and expenses such as representation at any coroner's inquest, fatal accident enquiry or other court hearing arising from any matter which may be the subject of an employers liability claim.

It also makes sense to take out public liability insurance. This covers your legal liability for death or injury to members of the public and loss or damage to their property caused by your business activities. 

Some trades, such as the building trade, carry higher risks and therefore it is extremely important to ensure you have the right level of public liability cover – some insurers offer limits of indemnity of up to £10 million.

In addition to tradesman liability insurance, tool insurance should be considered. Damage to or theft of tools and equipment could be disastrous to the operation of your business. Imagine if you woke up one morning to find that your premises had been broken into and your tools take. If you had tool insurance you could be back in business very quickly.

Whilst we started off considering the benefits of business tradesman insurance, in reality the downsides of not having this insurance are so great - and indeed illegal in respect of employers’ liability insurance - that it really is essential that you consider taking out this cover for your tradesman business.

Last updated - 01/2010

To talk to an expert in your area and get a quote contact your local insurance broker.