Business Insurance: What does a tradesman insurance cover?
Contrary to most other business insurance products discussed elsewhere in this guide, a tradesman insurance is not defined by what it does, but by who it does it for. Tradesman insurance is therefore more of a marketing name of a bundle of insurance products directly packaged for tradesmen. So what are the most common products in these bundles, and who are the tradesmen for whom these packages are designed?
Types of tradesman insurance
Tradesman insurance usually bundles public liability insurance, employers’ liability insurance, and various types of business equipment insurance.
Public liability insurance
Public liability insurance is an essential part of any tradesman insurance. It covers any compensation claims from the general public, like customers, or visitors who happen to be at your office, shop or factory when something happens to them and they suffer property damages or personal injury due to an unfortunate event which you are responsible for.
Employers’ liability insurance
Employers’ liability insurance is a legal obligation for any company which has employees, including contractors and apprentices, so it’s a component of basically every tradesman insurance package. Covered amount are usually in the six-digit range.
Business equipment insurance
Business equipment insurance can have many forms, and is usually part of a tradesman insurance package. This kind of insurance covers all kind of equipment necessary to perform the job, like tools, in case they get damaged, stolen or lost. A van insurance, protecting the van and/or what’s inside is frequently added by tradesmen who often need to be on the go.
What businesses should take note?
Tradesman insurance is directed to any tradesman, but some industries are more likely than others to look for an insurance policy.
Carpenters, joiners, furniture restorers or flooring contractors are among the most likely professionals to subscribe this kind of insurance policy. As they need a lot of expensive tools to perform their trade, a business equipment insurance or tool insurance will often be included in the package. Many insurance policies are especially designed to meet the needs of these professionals.
Plumbing and heating
Many insurance policies are also especially designed to meet the needs of these professionals. As they frequently need to move to their clients’ premises to perform their duties, a van insurance will often be a common addition to the package. But as they may cause harm or damage to their clients or their property, special care should be applied when reviewing the public liability insurance.
Painting and decorating
Painters and decorators also need to apply special care in keeping their customers and employees safe, as they routinely use flammable or toxic paints or solvents. Employer’s liability insurance will be a key area of concern.
The main concern for these tradesmen is the frequent connection and interaction with the general public, so business owners should choose a solid public liability insurance.