5 Reasons you need Trade Insurance
You might believe you don't need trade insurance. We’re here to tell you - respectfully of course - that you’re wrong!
Regardless of whether you're a brand-new sole trader just getting started or you manage a thriving business with a team of contractors, you need protection in place if (or when) an incident occurs.
Here, we go over the main reasons you need to have trade insurance and what makes it so important when wondering how to keep your finances safe.
It may be a legal requirement.
If you hire staff members without purchasing Employers' Liability Insurance, you will be fined by the Uk government. For each day you don't have Employers' Liability cover, your fine will be up to £2,500!
Although other types of trade insurance aren't legally required under UK law, it makes sound business sense to ensure you have protections in place. For example, all tradespeople should have a comprehensive Public Liability Insurance policy to protect against any accidental damages or injuries to third parties or their property. Without this cover, your business could face compensation costs heading into the millions.
Public Liability is generally your bedrock for all other insurance policies. It’s also a good idea to protect yourself from Personal Accidents or injuries where your finances will be taken care of if you cannot work. Likewise, you can protect your Tools, Legal Expenses, Tax and much more through a policy with Rhino Trade Insurance.
You want to impress larger clients and grow.
Tradespeople, whether new or established, will almost always be trying to win new customers or clients. However, many clients will decline to use your services if you don't have insurance since they want to see proof that you're minimising risks on-site.
Various clients frequently seek specific insurance with the correct level of cover, such as Public Liability Insurance or Professional Indemnity protection. Generally, you will find most clients who need insurance will be local governments, councils and other large-scale businesses. Having solid insurance is mutually beneficial not only offers important security for them, but it will ensure your business can survive a claim while also helping secure larger customers and clients.
If you are taking more business risks
Taking risks, such as rapid scaling up of operations or taking on inexperienced new trainees, can be good for business. However, they also mean a higher chance of unforeseen accidents and injuries. A thorough insurance policy will be able to assist you if something unexpected happens.
By selecting a flexible insurance provider, your company will remain protected as it develops and evolves. Don't forget, though, having enough insurance is key when making a claim. So if your business grows exponentially, notifying your provider and ensuring you still have enough cover is key in case disaster strikes.
Grab a quote for your trade business in 60 seconds here.
You don't have much business capital
No matter the size of your trade business, the current economic climate means that every pound must be spent prudently; therefore, there is no room for error. Think to yourself, could you afford to front the costs of an accident or incident on-site?
Without insurance, you will most likely be responsible for covering the costs of a mistake or accident out of your own money. You may also have to factor in cover for things like any fines, losses incurred due to company interruption, and the cost of replacing any stolen or destroyed property, in addition to legal fees and compensation.
The cost of these expenses can add up to thousands or even millions of pounds. We might wish we had the wealth of Elon Musk, but few of us have a financial safety net of millions, so a claim will significantly reduce your capital, maybe even pushing you into bankruptcy. That's not to mention the challenging situation you would have to try to rekindle your company's standing in the first place. Your best bet is to pay the small fee for protection and take out the right level of trade insurance so that your business has one less thing to worry about.
It shows credibility and builds trust
Business insurance does more than just defend your trade company. Having an adequate insurance policy will demonstrate to your clients, suppliers and vendors how seriously you approach risk management.
Not only that, but it conveys to everyone that you'll offer the proper safety and protection, regardless of the nature of the accident or incident. This can help your clients sleep easily and alleviate any worries your employees have when working on sites you manage.
Find out more about risk management for your trade business here.
Why Choose Rhino Trade Insurance?
The Rhino Trade Insurance team have worked hard to create the finest trade insurance policies around. We offer excellent cover options up to as much as 40% cheaper than our competitors.
Our team not only takes great pride in offering tradesmen and women top-notch insurance, but we also make getting a policy straightforward. You can have a quote in less than a minute and get on with your day.
For all the information you require, contact Rhino Trade Insurance on 0116 243 7904 or visit our website for everything you could possibly need.