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Public Liability Insurance

If you unintentionally damage someone’s property or injure a member of the public, you are covered by public liability insurance. This will assist with the expenses of both defending against a claim and offering compensation for winning claims.

For instance, an electrician is working on the shop’s outdoor lighting system. He runs an extension cable across the sidewalk while setting up, but it is neither secured nor cabled. The pedestrian who is walking by trips over the cable and sustains a head injury. They need medical attention and later filed a claim against the electrician for negligence.

Public Liability Insurance will provide coverage for:

• The medical expenses of the injured pedestrian.
• Compensation for pain and suffering.
• Legal costs if the pedestrian goes on to sue for damages.

What Isn’t Covered By Public Liability for Tradesman Insurance?

• Cost of faulty goods or workmanship.
• Any injuries sustained by your employees while they are working.
• Any damage towards your tools, materials or any work in progress.
• Liquidated damages, fines, or penalties.
• Work done or visitations to any out-of-state premises.
• If you charge a fee for any design formula, advice after inspection, certification, or any other form of guidance which is charged.
• Under the JCT Standard Form of Building Contract’s Clause, any related damage is not covered.
• Injury or damage caused by a drone or a mechanically propelled vehicle, such as a car, being used at any of your sites.
• Products sold outside the UK, EU, the Isle of Man or the Channel Islands
• Injury to your family or domestic staff.
• Damage caused by animals.

Employer’s Liability Insurance

Under the 1969 Employers’ Liability Act, you are legally obligated to obtain employers’ liability insurance if you have employed apprentices, subcontractors, temporary workers, or casual workers. As a rule, you will be protected for up to £10 million if an employee becomes ill or is hurt while working.

This includes compensation payments if you are held accountable for an employee’s illness or injury sustained while they are employed by you.

The Health and Safety at Work document ensures that employers’ insurance for tradesmen also covers:

• Legal costs if you or an employee faces prosecution under this act.
• Legal expenses if a penalty is served in relation to the 2007’s Corporate Manslaughter and Homicide Act.
• Compensation for attending court about a claim.
• Temporary staff for a particular number of days yearly, as per the size of the business.
• Protection for the partners who are actively engaged in work-related activities.

What Isn’t Covered Under Employers Insurance?

• Employees who reside outside the UK and other related premises not under the jurisdiction.
• Although the driver is covered, employee injuries while they are in your business vehicle are not covered.
• Any work done offshore (whether online or in-person).

Temporary Employee Cover

If you get employers’ liability from an insurance company, you will instantly be covered for temporary workers.

The maximum number of days that the insurance will cover for temporary workers will change based on how many manual labourers your company employs.

• One to five manual labourers for sixty days
• Six to ten manual labourers for a hundred days
• Between 10 to 15 manual labourers for 150 days

The total number of days is calculated by adding the days that each of the temporary workers has worked. Therefore, this will cover 100 days of work for all temporary employees combined if your company employs seven manual labourers.

Tools And Equipment Insurance

Tools and Equipment Insurance covers tradespeople against the cost of replacing or repairing tools and equipment that are lost, stolen or damaged in any way, such as through accident, theft or unforeseen situations.

The coverage is offered in the following instances:

• One night, a carpenter’s van is broken into, and all of his tools are stolen. He continues working because his insurance covers their replacement.
• An electrician breaks an expensive testing device from the ladder. This policy covers the repair or replacement costs.
• A fire destroys a plumber’s toolkit in a workshop. New tools are covered by the insurance, so work is not delayed.

The coverage may also be applied to tools that are removed/stolen when your business vehicle is not in use. This is limited to a number of 5 days only. You can add extra premium cover if you want overnight tools insurance.

Tools that are covered under this insurance include:

• Drills and trowels
• Chisels
• Hammers
• Spanners
• Saws
• Pliers
• Screwdriver
• Blow torches

The following equipment is also included:

• Ladders and Steps
• Any cleaning supplies
• Paints and brushes
• Lawnmowers
• Workbenches

Gadgets like laptops, cameras, phones, mobile satellite navigation systems, and handheld survey equipment are not covered in this policy.

Professional Indemnity Insurance

Professional indemnity insurance is available to some trades if they offer their clients services, designs, or advice. In addition to paying out on any successful compensation claims, this coverage will assist with legal fees and expenditures incurred in your defence.

For example,

A self-employed architect creates a design for a home extension for a client, but a problem arises during construction; the structural design is incorrect and causes costly repairs. The client sues the architect for professional negligence by claiming that the architect has caused financial losses.

Professional indemnity insurance will cover the legal fees, compensation, and any settlement costs to protect the architect from major financial liability and to protect her professional reputation.

What’s covered?

• Defence expenses, including attorneys, court fees, and experts, must be paid on top of the maximum specified in your policy schedule.
• Legal fees if the Data Protection Act is used to prosecute you.
• A collateral warranty is an extra clause added to a contract that gives someone with an interest in the building project who was not a party to the original agreement the ability to sue the parties who signed it.
• Reducing or preventing losses before practical completion.

What’s Not Covered

• Any claims or circumstances you were already aware of?
• Computer viruses.
• Bankruptcy or Insolvency
• Fines or penalties not relating to business reputation
• If a patented product is copied by you without permission.
• Any finance, credit or leasing agreements-related guidance.
• Criminal actions that were carried out deliberately.
• If you don’t follow fire safety regulations while cladding, glazing doors, or any external and internal wall systems of a building. It also includes any faulty component used during assembly or construction.
• Non-contractual validation reports.
• If you conduct a survey, claims cannot be covered unless the surveyor is a qualified one.
• In case of a project partnership, your partner firm will not cover your claims and vice versa.

Buildings Cover

Building insurance will help you get back up and running by paying for the costs of restoring any damage caused by fire or flood, which are insured events, at your place of employment.

Additionally, standard equipment breakdown coverage is provided for objects as part of this insurance. As long as the damage is not the result of normal wear and tear, replacement or repair of items like a broken boiler and faulty alarms are covered.

Stock and Material Cover

Stock and material insurance cover your inventory and supplies, like paints, bricks, and pipes. It can cover goods in transit, goods placed on-site (until they are installed), and any goods temporarily held in between works.

This insurance will provide coverage for the cost of replacing these things if they are stolen or damaged, allowing you to carry on with your business.

For example: A unit of climate control stores large quantities of pipes, fittings, and boilers in a locked storage unit for a plumber to use on upcoming projects. Throughout a night or two, thieves break in to steal a lot of his stock, leaving him unable to finish scheduled jobs.

If you have signed up for Stock and Material Cover, it will cover

• ✔ Stock and materials stolen fund reimbursement.
• ✔ Protection against loss due to fire, theft, or accidental damage.
• ✔ Replacement costs coverage

What’s Not Covered

• Wear and tear-related damages
• Weather exposure-related damages
• Mechanical or electrical breakdown-related damages
• When a temporary breakdown, short-circuiting or overrunning causes damage to electrical stock.
• Theft of business stock and materials from your vehicle between 9 pm and 6 am, unless the vehicle was locked inside your property.
• Any business material or stock which was in an open-back vehicle.
• Damage to fragile items during transit unless there was a fire, theft or accident to the vehicle.
• While checking your stock, unexplained losses or shortages are discovered.
• Stock only used or stored at your premises.