A tradesman is nothing without his tools, so if you’re starting a new job in a trade, it’s essential you have all the right equipment to do the job from day one. While you might have thought of the obvious, one vital tool to have in your locker before you get going is tradesman insurance.
Tradesman insurance, outside of employers’ liability, is not a legal requirement, but the protection it offers you can be invaluable both to your success and, in the instance of an accident, the survival of your business. But what does tradesman insurance offer? Here are the four key points of note.
Public liability
Public liability insurance covers the cost of claims made by the public for any accident or incident that occurs in relation to your business activities. In simple terms, if your business is involved in an incident that leads to an injury to/the death of a member of the public or damage to their property, public liability covers the cost of compensation.
Between April 1, 2020, and March 31, 2021, there were 51,286 public liability cases registered to the Compensation Recovery Unit, which is over 140 per day.
This insurance is not a legal requirement. However, due to the potentially mammoth costs associated with public liability claims, you should consider it essential for your business.
Tool cover
It’s impossible to do your job without the physical tools of the trade. You simply cannot work without them and purchasing replacements can be hugely costly, with many trades requiring expensive heavy machinery and specialist equipment on a daily basis.
Tool insurance covers the cost of replacing your tools in the instance of them being stolen, you losing them, or them being damaged by fire or flood. There are different levels of cover for different types of tools, including handheld tools, power and non-power tools and plant equipment, as well as insurance for equipment you have loaned, leased or hire purchased.
Product liability
If your business sells consumer products, you may want to consider product liability. If someone is injured or their property is damaged by a product you’ve sold, product liability cover manages the compensation for the claim attached.
It’s worth noting that in certain circumstances you may be liable in a claim even if you haven’t manufactured the product yourself, making this type of cover even more valuable.
Vehicles
While you’ve got your normal car insurance, there are also various types of business vehicle insurance to consider if you use your car or van for your trade.
There’s no set definition of business car insurance across the industry, and there are plenty of different varieties to consider for different roles. Delivery drivers, for example, will require specialist courier insurance that offers protection for themselves and the goods they have in transit. If you’re operating heavy good vehicles, you’ll require a different type of cover.
Tradesman insurance covers a wide range of key areas for business, all of which offer substantial value to the policyholder. Naturally, when you’re starting up in a new business, you’ll have financial constraints to consider, but if you’re interested in long-term stability, it’s highly likely that carrying tradesman insurance will be a fundamental part of your operation.
