Tradesman insurance is a type of commercial insurance policy specifically made for those working a trade, usually in fields such as building, carpentry, plumbers, or similar.

There are many different types of trades and many different types of businesses within each – which is why getting bespoke tradesman insurance is vital to make sure you are protected.

Tradesmen public liability insurance is not compulsory according to UK business law. However, it is highly recommended for anyone who owns a business and works closely with any member of the public or their property.

Public liability insurance for tradesmen covers you in the event that a member of the public or their property becomes hurt or damaged as a result of your business and decides to take legal action.

Every business in the UK that employs a team must have employer’s liability insurance. The only exception to this would be for a sole trader business with only one member. Employers’ liability insurance is a compulsory legal requirement for all employers. As part of your tradesman insurance, employer liability cover protects you in the event that one of your team is injured or ill due to their work.

Employer liability insurance is a legal requirement for all limited companies where there is more than one Director (with a few exceptions). It is highly recommended that any company that employs any number of staff take out this type of tradesman insurance to ensure you’re covered against the unexpected.

Employers’ liability cover is not a legal requirement if the employee is an immediate family member.  However, you should bear in mind that if your family member had an injury at work, they could still take legal action and you would not be covered. You could also still be fined under Health and Safety Legislation. Therefore, we strongly recommend that all employers have a satisfactory liability insurance cover, just in case.

Tradesmen have risks unique to the industry that are not necessarily applicable to other kinds of businesses. Having the right tradesmen liability insurance for your business is vital.

A Bona Fide Sub Contractor is anyone who:

• Makes their own decisions over how the work is carried out
• Provides their own tools and equipment
• Hires other people to help them with their aspect of the contract
• Sets their own price for the work being done
• Does not work solely for you and is able to work for other tradesmen

If none of the above apply, they would be classed as an employee.

Labour only sub-contractors generally work under the direction of an employer and work with tools and materials provided to them by the employer. Labour Only Sub Contractors should be treated as employees and therefore need to be covered under the employer’s tradesman liability insurance.

Most insurers can provide tradesmen tool insurance for tools kept in a van or vehicle overnight. Although do keep in mind that this is often provided only when you have taken all steps to prevent theft. This would mean there is a forcible and violent entry or exit. Some insurers may also stipulate where the vehicle should be kept overnight, or may increase their premium if they deem the vehicle not fully secure. At Higos, we will take into account all your information to find you the best tradesmen tool insurance for you.