Blog • 10.02.17

Contractors and Tradesmen

As contractors and tradesmen, you know that insurance is an important part of protecting your business. However, the choice of insurance types can be overwhelming, leaving you wondering what insurance you need. SafeContractor insurance partner Towergate is here to give you the answer – read on to find out which insurance you really need.

Do I need Public Liability insurance?

Public liability is not a legal requirement, but most businesses do need it. No matter how careful you are, accidents do happen, and public liability claims can happen to anyone. A Public Liability policy will pay the legal defence costs where you are alleged to have caused accidental bodily injury or damage to property. In situations where you are at fault for the accident, the cover will pay for the damages awarded and/or the repairs to the damaged property. Check your customers’ contracts, as these will often specify Public Liability as a requirement and specific an actual indemnity limit.

Do I need Employer’s Liability insurance?

You are legally required to arrange Employer’s Liability cover when you employ anyone, irrespective of whether this is in a manual or non-manual capacity. This also includes apprentice(s) or agency worker(s) under your supervision. The insurance protects your business from compensation claims of up to £10 million arising from any one incident, should your employees suffer injury or illness during their employment arising from your negligence.

Do my bona-fide sub-contractors need their own insurance?

It’s important that you ensure that all bona fide sub-contractors used by you have their own Employer’s and Public Liability insurance in force. The minimum limit of indemnity should be at least equal to that of your own Public Liability cover, and £10 million for Employer’s Liability insurance. Whilst being good practice, you should carefully check the terms of your policy, as this may be a requirement of your cover. Failure to comply may mean that your policy will not operate and result in claims not being paid.

Do I need Professional Indemnity insurance?

If your company specialises in providing advice, designs or offers a professional service to clients, then you will need Professional Indemnity insurance. Mistakes can happen when running your business which can lead to clients suffering a financial or professional loss. Professional Indemnity insurance will cover the legal costs in any compensation claims made against you. Covers include things such as loss of money, loss of documents and professional negligence.

Do I need tool and plant cover?

For a great number of businesses, work tools are crucial to your day to day activities. As a tradesman, you understand how much tools cost and the impact it would have if they were to be lost or stolen. Many people spend years investing large amounts of money in buying the tools that they need and replacing all of these at once could be financially devastating. Making sure you have your tools covered will allow you to get back to work without the financial worry.

Do I need van insurance?

Many businesses rely on their van to run daily, so making sure you have the right cover in place is crucial. For some businesses, their van is just as important as the tools they use day to day, so should anything happen to that van, it is important to get back on the road as soon as possible. Van insurance differs from standard personal car insurance policies with certain factors for you to consider, such as:

  1. What do you use your van for?
  2. What do you carry in your van?
  3. How often and how far do you drive your van?