Tradesmen Insurance - What to Look For

If you earn your living through a trade and you are self-employed, you will need good tradesmen insurance cover. But what should you look for as you buy tradesmen insurance? Tradesmen insurance policies tend to offer a core of similar coverage and benefits, but you do need to consider the insurance needs of your particular trade.

For example, if you are a builder, you may have different insurance needs to a window cleaner; if you are a kitchen fitter, your requirements may be different to those of a carpet fitter. When you buy tradesmen insurance, make sure your particular trade is covered.

Many tradesmen policies are tailored to meet the needs of sole traders or small businesses with a small number of employees. It is important that they cover your business tools and equipment and your place of business, as well as covering you when you carry out work away from your premises.

The tradesmen insurance must cover your legal obligations:

• If you have employees, it should include employers’ liability insurance to cover your legal liability for claims by employees injured while working for you.
• Company cars, vans, lorries and licensed plant vehicles are legally required to be insured for third party liability both for injury and damage, so make sure you arrange motor insurance. Even if you use your own private vehicle in the course of your job, you must inform your insurer of this fact.
• Does your business involve making, repairing or selling goods? If so, make sure that you have products liability insurance to cover your legal liability for injury or damage arising from defects in the design or manufacture of goods made, repaired or sold by you in the course of your business.

Public liability insurance is important as claims costs can be very high.  If you injure a member of the public or an independent sub-contractor in the course of your business or accidentally damage surrounding or third party property and are found to be legally responsible, the public liability policy will meet claims for compensation made against you.  Make sure that the level of cover is adequate - some insurers offer limits of indemnity of up to £10 million.

Arguably the most important thing for any tradesman is his tools. Without his tools, a tradesman is unable to work and so unable to earn. Therefore it is essential that the insurance policy covers the cost of replacing tools if they are lost, stolen or damaged.

The best insurance policy isn’t necessarily the one that provides the highest levels of cover or the one that you can get for the cheapest price. You should carefully consider what business risks you have and make sure that you buy a tradesmen insurance policy that includes these.

Remember, it’s not just about the insurance cover - you should also expect a good level of customer service. Look for an insurer that offers a 24-hour helpline and is willing to give help and advice on any problems you may encounter in the course of your business. Also make sure that the claims handling service provided is of a high quality - after all, it is this service you will be using if you need to make a claim.

Each tradesmen insurance policy will have its own terms and conditions. Study these carefully and make sure you understand what is, and isn’t covered. If need be discuss them with a Cherrypicked Insurance Broker before making a decision.

When it comes to looking for your insurance, there are many companies offering online tradesman insurance . This may be ideal for you if you operate in a trade that is fairly straight forward. If you can go down this route, you have the freedom of making your insurance purchase at a time that suits you - not necessarily during the standard working day.

Last updated - 01/2010

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