Posted over 3 years Ago
The law doesn’t compel tradesmen to take insurance covers, except under special circumstances. As a result, many tradesmen regard insurance as a kind of optional extra. Although no one may demand that you take an insurance cover for your business, it’s something invaluable when it comes to protecting your business.
Being a professional tradesman or contractor exposes you to many high-risk situations. You’ll make mistakes regardless of how experienced and careful you are. One simple mishap can potentially ruin the business that has taken years to build. It, therefore, makes perfect sense to have the best insurance coverage.
We talk a lot about how tradesman insurance is an important tool to more than 100,000 professional tradesmen in the UK. However, the best way to emphasize the importance of tradesman insurance is by looking at some case studies. The following are some real-life examples of how insurance came in handy for different tradesmen and contractors.
A subcontractor builder, who was undertaking some repair works on a masonry structure, fell off a ladder. He made a claim of £20,000 as the compensation for the injuries he had sustained. The contractor was lucky enough because he had employers’ liability insurance cover. His insurance covered the full amount claimed by the subcontractor. If he didn’t have the insurance cover, you can rightly guess what could have happened. The contractor could have been forced to part with a profit of several months.
If you employ staff or labour-only subcontractors, the law requires that you take a minimum employers’ liability insurance cover of £5 million. The insurance cover protects your business in case your employees claim compensation from you following injury, death or illness. Employers’ liability insurance is an optional extra if you only employ close family members or bona-fide subcontractors. Bona-fide subcontractors are the ones who work without your direct supervision and use their own tools and materials. They usually hold their own insurance covers.
Although your business may be exempted from employers’ liability insurance, it’s wise to have the insurance cover in place. Employers’ liability insurance cover offers tradesmen financial protection and the peace of mind. That’s what entices many businesses to purchase the cover even if it’s not compulsory for them.
An electrician was contracted to install a heating system in a commercial building. The installation was incorrectly done and this caused a fire that caused approximately £50,000 worth of damage to the property. His insurance covered the cost of damage as the electrician had taken public liability insurance cover. The deal was good enough because the insurance policy cost him around £800 per year.
Public liability insurance covers you in case your work occasions injury to your customers or public or damage to their property. Working as a tradesman comes with a tonne of uncertainties. Your job may appear perfect only for things to go horribly wrong later on.
We are living in an era of new consumer awareness. Clients are increasingly aware of the risks involved in different trades. Some even have had bad experiences of working with tradesmen. That explains the growing trend of clients demanding a proof of coverage before allowing you to step your foot on their property. Having this insurance cover per se doesn’t eliminate the suspicions that the clients have. However, it gives them some peace of mind in knowing that they won’t be at a total loss in case their fear of the unknown becomes a reality. Public liability insurance is therefore not just important but critical.
A builder left his tools worth £4,000 on a secured building site. The site was broken into at night, and most of his tools were stolen. Luckily, the builder had purchased tools equipment insurance. His insurers paid for the replacement of the stolen tools.
The above case study demonstrates how you should never rock up to your job without proper insurance for your tools. Your tools can get lost or even damaged regardless of how careful you are. Holding a tradesman insurance policy that includes the right cover for your tools saves you the expenses of replacing or repairing the tools. Tools equipment insurance covers for lost or damaged tools and equipment. It also covers other trade materials.
As demonstrated by the above case studies, claim payments in tradesman insurance exceed the cost of insurance by far. That’s the great value that insurance can offer you. Of course the insurance covers highlighted in the above case studies are not the only covers available. Visit our tradesman insurance product page to check the covers that are available for you. We will use our expertise and experience to help you choose the best cover to suit your business needs.