Similarly to Public Liability Insurance, there is no legal requirement for Tradesman Insurance; however, the high risk situations that are the nature of tradesman work necessitate a carefully considered and outlined cover plan which should look to protect you against any potential claim.
The Insurance Octopus recommends a plan tailored to your specific business needs, including the areas of risk you come into contact with, how many people are involved in the business and the nature of your work.
For example, working with a contractor will require a different kind of policy as it will include protection against client damage claims and compensation costs. Cover should be a cost effective choice rather than a needless expense, which is where The Insurance Octopus comes in.
Drop in trade volumes
Looking at reports from 2013, it seems that the number of tradesmen in the UK are on the fall and the market is not as affluent as it once was. Amongst the sharpest in decline include bricklayers and window cleaners with the number of plumbers down at least 25% since 2009.
Most of the blame for this seems to be the downturn of the economy as tradesman have seen an average pay cut of 40% since the hit of the recession. Despite this, there have been odd rises of other trades including chimney sweeps which have seen around a 4% average rise in the past three years mirroring the rising popularity of open fires in the home to save on costs.
Tradesmen insurance seems to have been unaffected
Although in general tradesmen have been on the decline, the market for Tradesman Insurance seems to have been unaffected. Looking at comparison quotes online, the rates are as broad ranging and flexible as they were before the decline.
It’s never great news to hear about a drop in trades, but it is interesting that this drop hasn’t coincided with less tradesmen choosing to take out tradesman insurance and stay protected.