Types of Insurance for Self-Employed Tradesmen
We know a thing or two about insurance for self-employed people, and tradespeople have a range of options to protect themselves and their businesses. We understand no one is keen to pay for insurance, but it's necessary to run a safe and stable self-employed business. You must consider your insurance options wisely and pick the right cover for your line of work. If you're not sure where to start, here are some of the most common insurances for self-employed tradesmen.
SELF EMPLOYED TRADESMAN Public Liability Insurance
Arguably, the most critical type of insurance for any self-employed tradesman is public liability insurance. Simply put, this insurance protects you if something goes wrong while you're providing services to your clients. Public liability financially protects you from legal fees and compensation attributed to a claim against your business made by a member of the public. Therefore, it's essential to get comprehensive public liability insurance to give you and your clients peace of mind.
Employer's Liability Insurance
While PL insurance protects against claims made by members of the public, employers liability insurance covers claims from staff. Suppose you employ someone to support your business, whether on-site or in the office, you're required by law to have employer's liability insurance. Having this insurance in place covers any claims from employees, temps or even subbies working under you.
If you're a self-employed tradesman, you likely have a van to get back and forth from sites as well as transport tools and other materials. Unfortunately, most domestic motor insurance policies don't cover business operations, so you will need the right van insurance in place if you plan to use your vehicle for commercial purposes. If you don't, you risk invalidating your insurance if you have an accident while using the van for work purposes!
Professional Indemnity Insurance
If your self-employed tradesman business involves producing designs or providing advice, then you should consider professional indemnity insurance. If your client claims you have been negligible and can prove that your service has negatively impacted them, you'll be covered by this type of insurance. Professional indemnity insurance ensures that you are financially protected against any such claims and won't be liable to a potentially large payout.
As a self-employed tradesman, your tools and other equipment are essential for carrying out your job. We've discussed previously how tool theft in the UK is a worsening problem. Tool insurance protects your gear from loss or damage while temporarily housed in your vehicle. This cover can save you a lot of money in repair bills and replacing your equipment if an accident should happen. Being without your tools for any length of time could be very costly - so any self-employed business owner should consider this policy.
While the thought of insurance for a self-employed business owner induce a headache, doing your research and understanding what's suitable for your line of work is a crucial first step. Ignoring or scrimping on insurance can leave you exposed to accidental damage, theft, and a variety of other risks. If you're unsure which policies are relevant to you or would like any further information, give us a call on 0116 243 7904 or drop us a message here.