What insurance should a tradesperson have?

30th November 2021

As most people who work in the trade industry will know, there is always a chance that an accident or misunderstanding could occur. Ensuring that you are fully covered with insurance is, therefore, a necessity. However, understanding which insurance you actually need can be difficult to figure out.

What makes it even more complicated is that insurance will differ for every tradesperson depending on their industry. For example, an electrician will want to take out electricians insurance but this will cover areas that a plumber or a roofer will not require.

Also, you can prefer contractors all risk insurance which helps to bridge the gap between these two risks into a single common insurance policy

In this post, we talk you through some of the insurance basics for a tradesperson.


Public liability insurance

Although this isn’t a legal requirement for individuals in the trade industry, this is a great choice to protect your business from accidental damage. In fact, if you’re a contractor, you may be required by the people employing you to have public liability insurance to work on their project.

This insurance is designed to protect businesses from claims of any accidental damage by a customer or member of the public which is linked to any work that they carried out. Public liability insurance is not a legal requirement but it holds great value in giving you peace of mind should you need it at any point.

Tools and equipment cover

Tools and equipment are required for any job within the trade industry. Jobs cannot be completed without tools, so this cover will help you to work in comfort knowing that they will be protected from the financial implications of theft or policy-inclusive accidents.

Once you’ve insured your equipment and done everything you can to prevent your tools from being stolen, breaking or going missing, you will be able to sleep easier at night knowing that you are covered, should the worst happen.

Employers’ liability insurance

Whether you employ just one person or 100, you are legally required to have this insurance or you could receive a significant fine for every day that you do not have the correct cover as an employer.

This insurance will protect you against any claims made by employees, trainees or subcontractors as a result of any injury or illness they have suffered as a direct result of their work.

The minimum level for this cover is £5 million but you may decide to take out insurance at a higher level. Your certificate for this insurance must also be placed in an accessible location for your employees.