If you work as a tradesman, your daily tasks will be beset with a variety of risks. Having the right insurance policy in place is vital and is usually a legal requirement. Insurance also offers the tradesman peace of mind and can mitigate the impact of claims that could potentially put you out of business. Here are six of the most common types of insurance claims that are of relevance to most tradesmen.
1. Damage to property
Property damage from work carried out by a tradesman comes in all shapes and sizes and could include an electrician installing wiring that causes a fire, a plumber fitting pipework that springs a leak, or a gardener chopping down a tree that falls on to a property and damages it. The potential for damage is enormous and, worse still, it could cause injury or even death to your customers or the general public. To cover claims made from damage to property or injury as a direct result of your work, public liability insurance is essential for tradesmen. In many cases, you may not be awarded a work contract unless you can show that you have this cover in place.
2. Employee accidents
Tradesmen are susceptible to workplace accidents, especially if tasks involve the use of tools, equipment or working at heights. If you employ staff, you have a duty to ensure that their health and safety is protected, and taking out employer’s liability insurance is part of this obligation. If staff make a compensation claim against you for workplace injuries, such as chopping a finger off using your tools, tripping over cables or even illnesses caused by exposure to certain substances, you are protected with employer’s liability cover.
3. Stolen tools
Tools are indispensable to a tradesman, so if they get lost or stolen, it can be expensive to replace them. It may also cause the business to grind to a halt. Taking out tool insurance is, therefore, a sensible idea and this is often included as a policy add-on. It’s important to check if the policy covers you for tools left in your van, especially if they are stolen overnight.
4. Contract work
If you’re working on a project or contract where something is damaged before the end of the term, contract works insurance can offer you the vital cover you need to ensure the damage is repaired, or that you’re paid what you’re due up until the time of damage. This can cover a range of scenarios, such as if a chandelier falls when you’re cleaning it, or if construction work is damaged midway by flooding.
5. Making mistakes
If your work involves offering advice or consultancy services, or you produce designs for clients, professional indemnity insurance can offer you peace of mind. It will cover you for claims made resulting from errors in your work that cause financial loss for clients. This insurance can cover the legal expenses incurred as a consequence of compensation claims, which could otherwise cause you financial ruin.
6. Hired machinery damage
Many tradesmen need to hire plant or machinery, such as diggers, concrete mixers or forklifts, as part of their construction work. If these hired items get damaged or stolen, you could be liable for replacing them. Taking out hired in plant insurance cover, however, protects you from having to pay these costs.
Tradesman Insurance at The Insurance Octopus
Fundamental elements of insurance are required as a tradesman to protect you and your business, for example liability cover, cover for your tools and property damage, The Insurance Octopus can provide this for you. Speak to us today to get a quote.