What Insurance Do You Need as a Tradesman?

Insurance is not optional if you are working in people's homes. Here is what you need and why.

Public liability insurance

This is the most important one. It covers you if you accidentally damage a customer's property or if someone is injured because of your work. Most customers will ask if you are insured before hiring you, and directories like North East Trades display your insurance status on your profile. A typical policy costs £100 to £300 per year for £1 million to £5 million of cover.

Employer's liability insurance

If you employ anyone, even a single apprentice or labourer, this is a legal requirement. It covers claims from employees who are injured or become ill because of their work. The minimum cover is £5 million. Fines for not having it start at £2,500 per day.

Professional indemnity insurance

This covers you if a customer claims your work was negligent or you gave bad advice. It is most relevant for trades that involve design decisions, like kitchen fitting or building work. It is not legally required for most trades, but it gives you extra protection.

Tool insurance

Your tools are your livelihood. If they are stolen from your van or damaged on site, tool insurance covers the cost of replacing them. Check whether your van insurance already includes tool cover. If not, standalone tool insurance typically costs £50 to £150 per year.

Van insurance

Standard car insurance does not cover commercial use. You need a van insurance policy that covers you for business use, including carrying tools and materials. If you use your van for commuting and work, make sure both are covered.

Personal accident and income protection

If you are self-employed and you injure yourself, you have no employer to fall back on. Personal accident insurance pays out a lump sum for specific injuries. Income protection pays a monthly amount if you cannot work due to illness or injury. These are often overlooked but can be a lifeline.

How to save on insurance

Get quotes from at least three providers. Trade-specific insurers often offer better rates than general ones. Pay annually instead of monthly to avoid interest charges. And keep your claims history clean as it affects your premiums.