TL;DR
- Tradesman insurance typically combines public liability, tools cover, and employers liability if staff are employed.
- Public liability is not legally required but is expected by most clients and domestic and commercial contracts.
- Employers liability IS legally required for tradespeople with employees: minimum 5 million pounds cover.
- Tools cover protects equipment against theft and damage: replacement tool costs can be significant.
- Public liability for tradespeople: from approximately 100 to 300 pounds per year for sole traders.
- Tools cover from approximately 50 to 150 pounds per year depending on equipment value.
Key Facts
What Is Tradesman Insurance?
Tradesman insurance is a package of covers designed for self-employed tradespeople and small trade businesses including electricians, plumbers, builders, decorators, joiners, plasterers, roofers, and similar skilled tradespeople. The core components are public liability insurance, tools and equipment cover, and employers liability insurance for those with staff. Additional covers include contract works insurance, personal accident and sickness, and vehicle cover for trade vans.
Public Liability Insurance for Tradespeople
Public liability insurance covers claims by third parties for accidental bodily injury or damage to property arising from the tradesperson work activities. If a plumber causes a leak that damages a client kitchen, or an electrician accidentally starts a fire, or a builder drops a tool and injures a passer-by, public liability covers the compensation and legal defence costs.
PL is not a legal requirement for sole traders and small businesses but is expected by virtually all domestic and commercial clients. Many homeowners and property managers will not allow a tradesperson onto their property without evidence of public liability cover. Commercial clients and main contractors on construction sites typically require minimum PL cover of 2 million or 5 million pounds, specified in the subcontract agreement.
PL premiums for sole traders in most trades start from approximately 100 to 300 pounds per year for 1 million or 2 million pounds of cover. Higher-risk trades such as roofers, scaffolders, and demolition contractors pay more. Higher turnover, commercial work, and higher cover limits increase the premium.
Tools and Equipment Cover
Tools cover protects the tradesperson owned, leased, or hired tools and equipment against theft and accidental damage. For many tradespeople, their tools represent thousands of pounds of investment that is essential to their ability to work. A van break-in that results in the theft of specialist power tools can cause significant financial loss and loss of earnings while tools are replaced.
Tools cover typically includes hand tools, power tools, and portable equipment. Most policies cover tools stored in a locked vehicle overnight subject to conditions: the vehicle must be locked, the tools must be out of sight, and the vehicle must be parked in a secure location where possible. Tools cover premiums typically start from approximately 50 to 150 pounds per year depending on the total insured value and the security conditions applied.
Employers Liability for Tradespeople with Staff
Any tradesperson who employs workers, including apprentices, part-time helpers, or labour-only sub-contractors who work under their direction and control, must hold employers liability insurance. EL is a legal requirement under the Employers Liability (Compulsory Insurance) Act 1969. The minimum cover is 5 million pounds per claim. The HSE can fine businesses up to 2,500 pounds for every day they operate without valid EL cover.
Contract Works Insurance
Contract works insurance (also called contractors all risks) covers work in progress against accidental damage before completion. If a building project under construction is damaged by fire, flood, storm, or vandalism, contract works insurance covers the cost of reinstating the damaged work. This cover is particularly relevant for builders, joiners, and other tradespeople working on larger projects where the work in progress represents significant value.
Frequently Asked Questions
Do I need public liability as a tradesperson?
It is not legally required but is practically essential. Most domestic clients and virtually all commercial clients require evidence of PL cover before allowing work to proceed. Working without PL leaves the tradesperson personally liable for any injury or damage claims.
How much public liability do I need?
1 million pounds is the minimum for most domestic work. Commercial clients and main contractors typically require 2 million or 5 million pounds. Check contract requirements before purchasing.
Does tools cover include van break-ins?
Yes, provided the conditions are met. The vehicle must be locked, tools must be out of sight, and some policies require tools to be removed from the vehicle overnight. Read the theft conditions carefully before assuming van break-in is covered.
Am I covered if a client trips over my tools?
Yes, under public liability insurance if the injury was caused by your negligence. If a client trips over tools you left in a dangerous position and is injured, PL pays the compensation and legal costs.
