Tradesman’s Insurance is something to tuck into your toolbox, if you are a professional engaged in a trade requiring a strong insurance protection bubble around it.

It’s intended to offer anyone, from carpenter to small builder and contractor, elements of insurance typically required within their daily work.  It protects against the numerous risks faced by trade professionals – ones which could result in significant financial losses.

Although you might think it’s just for plumbers, electricians, painters and decorators and the like, it’s also intended to cover less obvious professions.  Take landscape gardener, swimming pool installer, or window cleaner, for example.

What does tradesman’s insurance cover?

Buying a tradesman’s policy gives you umbrella cover, without having to purchase the individual components that it comprises. These are typically public liability, employers’ liability, legal expenses, tool protection, contract works and plant insurance. Another cover may be that of  personal accident insurance, although this may be an optional extension to the policy.

Within this, there are all sorts of individual components of protection, whether that is for an on-site show home that suffers damage, or legal assistance for a health and safety breach.

Is your tradesman insurance policy doing what it should?

Whilst you may have tradesman insurance, it may not be doing the job you believe it is doing.  There could be key risks against which you are not protected.  There could also be things that you unwittingly do, which would invalidate your cover.

The easiest way to check this is to have a broker review your business and how it operates and cross-reference everything against your existing policy.  We are here to help with that and will invest our time in getting to know your business, so we can offer you an opinion as to whether your cover is sufficient.

 In the meantime, here are 11 things that could catch you out.

1. Public liability limit

 Let a broker advise whether the amount of public liability insurance you have in place is sufficient. Costs of awards to individuals can be significant whilst, if you damage property, you have to factor in inflation, which has had a major impact on re-build and labour costs.

2. Hot works and bitumen

 If welding, or using blow lamps, blow torches, hot air guns, bitumen heating vessels or grinding our cutting equipment with abrasive disks or wheels, pay attention to your policy wording. It will contain strict requirements with regard to fire safety measures and checks over the presence of combustible materials within the area in which you are carrying out work.  You will be expected to not leave the heat tool unsupervised.  The policy will also specify intervals at which you need to go back and check the work carried out.

3. Height, depth and demolition

Your policy will most likely specify a maximum height at which you can carry out work and a maximum depth to which you can excavate.  If you made a claim for work carried out beyond these limits, it would not be valid.  Similarly, most policies will not cover demolition works.

4. Locking up

A tradesman policy offers no protection for tools/equipment left in an unlocked van.  A sign of forced entry may also be needed.  Do not leave your van unlocked, or with windows open.

5. Asbestos

Check carefully what your policy wording says about asbestos, as an insurer’s view on this could vary.  If you regularly remove asbestos, make sure your policy covers you.

6. Cables, pipes and mains

 If excavating, digging or earth-moving, you must take all reasonable care to identify the location of any underground cables, pipes or water mains, liaising with the property owner and relevant authorities.  Your insurance policy may also require you to retain a written record of the measures taken when trying to identify where such utility infrastructure is located.

7. Sum insured

 It is important to get your sum insured right, by providing accurate information about your business and its annual turnover, when you take out your policy.  Various elements of cover rely on this.  For instance, if you need compensation for debris removal, the amount of financial assistance may only be to an amount constituting 25% of your sum insured.

8. Temporary employees

 Some tradesman insurance policies will automatically cover temporary employees, within defined limits, but others will only offer this cover if you take out an extension.  Be very careful, if you regularly take on temporary staff.

9. Advising your insurer of details

 You may need to advise your insurer of all contract works requiring indemnity cover.  This will have to be done within a specified timeframe, so don’t forget. Also, remember to declare all relevant information, when initially taking out your insurance cover.

10. Tax enquiry claims

 Your cover for tax-related enquiries will only apply if you take reasonable care to ensure tax returns have been complete and correct.  You may find there is no protection, if you fail to register for VAT or Pay As You Earn.  Similarly, if you enter into bankruptcy or liquidation, you will probably find you cannot start a claim or have any compensation for one that’s underway.

11. Money claims

 Check the age limits of people covered when banking money and how many must be involved, according to the sum carried.  Having your 15-year-old son or 77-year-old mother do this, or too few people involved, could mean no compensation, should the worst occur.

These are just some of the details to check, if taking out a tradesman policy. If an expert broker works with you, they will highlight policy wording requirements but also make sure the policy you buy does not have exclusions that make it worthless for your business. If you buy your cover from an online provider, the same knowledge and attention to detail will not apply.

Don’t take that risk, when you can work with a dedicated broking professional who can provide a good policy, competitive insurance quote and the in-depth insurance knowledge that could prevent you from coming unstuck.

Call us today on 0113 244 8686 or choose a local broker with whom you would like to work by using the map here.