Self-employed tradesman insurance provides valuable cover for tradesmen and subcontractors. Roofers, plumbers, electricians, bricklayers, and other tradesmen have to work with their hands. You use power tools and heavy equipment. The risk of injury to self, others, and property damage is always there. There is also a chance that the work you do may lead to injury and damages after completion. Basically, there is always a chance that you may have to face liabilities arising out of one situation or another. Self-employed tradesman insurance helps you meet the costs arising from such liabilities.
Such a policy makes eminent sense, because unlike tradesmen employed by others, you do not have an employer taking care of the business’s insurance needs.
If you have to face a claim and you don’t have the backing of an employer, then you may have to do a bit of running around. With a policy in place, you have trusted people that you can consult and take appropriate steps. This is a huge benefit of self-employed insurance for tradesmen. You could be staring at a claim or multiple claims when you least expect it; if you have to pay from your own pockets then it could derail business growth, stress your resources, and also affect your personal life.
A well-rounded self-employed tradesman insurance policy is your ticket to a stress-free work life.
Look for a policy that offers the following types of cover –
- Public liability insurance – This insurance is the bedrock of any tradesman insurance policy. It protects against claims made by customers and third parties for injuries and property damage. At the very least, you should aim for £1 million public liability cover. Your insurance company can raise this limit depending upon your needs. You can learn more about public liability insurance at Tradesman Saver if it’s something you know you need.
- Financial loss – Insurance providers offer financial loss cover as a free adjunct to public liability insurance. It is a very useful cover to have. It protects you from costs arising from claims made for financial loss that does not arise from injuries or property damage. It is not difficult to visualize scenarios in your trade where such claims may be made against you.
- Products liability – This is another cover that your insurance provider may offer free, along with public liability insurance. It comes in handy if the product you make or supply leads to personal injury or property damage. While this insurance is not a legal requirement, the insurance offers protection against a barrage of claims should an entire batch or more of products turn out faulty.
- Legal expenses – This is a valuable cover to have. It gives you the ability to take legal action and face legal action without worrying about costs. This cover is meant for legal costs arising out of situations apart from injuries and damage. It covers employment disputes, property matters, tax litigations, VAT appeals, compliance issues, etc. The cover also allows you avail expert legal advice and run your business smoothly.
- Employer’s liability – Employer’s liability is a legal requirement. It is invariably sold separately and not available as a free add-on. Employer’s liability works out cheaper when you purchase it bundled with other covers. This cover protects you from claims raised by staff injured in the line of duty.
- Tools and equipment liability – Your tools and equipment are essential for your work. Regardless of whether you are a gardener, driver, or window cleaner, your tools enable you to earn a living. Tools and equipment cover for the self-employed tradesman extends to theft and damage. With this cover in place, you do not have to worry about paying for equipment from your own pocket.
- Contractors all risks – As the name suggests, this is a comprehensive insurance for contractors. If your self-employed tradesman business involves accepting contracts then this cover is a useful one because of its scope. With this cover, you are insured for tools, construction site, temporary structures and hired-in property.
- Business contents – This insurance covers expenses related to business contents, such as desks, furniture, fax systems, IT hardware, and software. As a self-employed tradesman, you depend on these things to stay in touch with clients, meet regulatory obligations, and ensure that you finish projects on time. Without business contents insurance, you could be looking at immediate and stiff out-of-pocket expenses.