Top Mistakes Tradesmen Make When Choosing Insurance

We know you're busy tackling jobs, fixing things, and making homes and businesses better every day. But here's the deal - have you given enough thought to protecting yourself and your livelihood? Choosing the right insurance is crucial, but it's a task that often gets pushed to the back of the queue. Fear not! In this blog post, Rhino will be breaking down the top mistakes tradesmen and women make when selecting insurance so you can dodge those pitfalls and keep your business booming.

Ignoring the Basics:

Let's start with the fundamentals. It's surprising how many tradespeople skip over the basics when it comes to insurance. Don't be one of them! Take the time to understand the different types of coverage available. Public liability insurance, tools coverage, personal accident insurance and more should be on your radar. Without a solid foundation, you might find yourself vulnerable to unexpected setbacks.

Imagine this: you accidentally damage a client's property while on the job. Without liability insurance, you're left with a massive bill and a damaged reputation. Don't let this happen to you - cover your bases.

Underestimating Your Risks:

Each trade comes with its own set of risks, and failing to acknowledge them can lead to disaster. Are you a plumber navigating tight spaces? A bricklayer working at heights? A carpenter wielding sharp tools? Assess your risks realistically and tailor your insurance coverage accordingly - don't fear, though; Rhino's expert staff are there every step to ensure you get all the right protection.

For instance, if you're a bricklayer, make sure your policy includes coverage for falls and injuries related to working at heights. If you're a plumber, consider coverage for potential water damage caused by your work. By identifying your unique risks, you can choose trade insurance that truly safeguards your business. Luckily, Rhino Trade Insurance creates a totally bespoke policy for every trade business that asks for a quote. 

Going for the Cheapest Option:

We get it - everyone loves a good deal. But when it comes to trade insurance, opting for the cheapest policy might leave you exposed in times of need. Cheap insurance often means limited coverage and unexpected exclusions. Remember, you get what you pay for.

Instead of being fixated on the price tag, weigh the value of the coverage against the cost. Rhino offers comprehensive protection at a reasonable price that is 100% tailored for you. Remember, your insurance is an investment in the longevity of your trade business.

Neglecting the Fine Print:

Insurance policies are notorious for their lengthy, jargon-filled documents. We get it - they're not the most exciting reads. However, neglecting the fine print can lead to nasty surprises down the line. Take the time to understand your policy's terms, conditions, and exclusions. And don't forget to ask a Rhino specialist if you are confused by anything. We pride our team on providing quick, easy, and transparent information relating to insurance. 

Pay attention to limits on coverage (for example, our public liability insurance can be taken out from £1 million, £2 million and £5 million). If something seems unclear, don't hesitate to reach out - it's better to be safe than sorry.

Forgetting to Update Your Policy:

Your trade business evolves over time, and so should your insurance coverage. A common mistake is forgetting to update your policy to reflect changes in your operations. Did you recently acquire new equipment? Hire additional staff? Expand your services? Make sure your insurance policy grows with your business.

An outdated policy might not provide adequate coverage for your current needs. Regularly review your insurance to ensure you're always prepared for whatever comes your way. At Rhino Trade Insurance, you can easily update your policy and be back on site before you know it. 

Overlooking Professional Indemnity Insurance:

As a tradesperson, your work is a testament to your skills and expertise. However, even the best can face unexpected challenges. Professional indemnity insurance is often overlooked but can be a game-changer.

Consider this scenario: a client claims that your work caused financial loss or damage. Without professional indemnity insurance, you could find yourself in a legal and financial battle. This coverage protects you against claims of negligence or mistakes in your professional services. Don't leave your reputation and hard-earned money on the line - whether you are an electrician, builder, plumber or heating engineer, invest in professional indemnity insurance today.

Failing to Disclose Relevant Information:

Honesty is the best policy, especially when it comes to insurance. Some tradespeople make the mistake of withholding information or providing incomplete details during the application process. This can lead to denied claims or even policy cancellations.

Be transparent about your trade business activities, the type of work you do, and any past claims or incidents. It's better to disclose everything upfront to ensure your insurance accurately reflects your business profile. Trust us; it's a small price to pay for peace of mind.

Find out more about being underinsured by reading our blog here. 

Assuming Your Tools Are Covered:

Your tools are the lifeblood of your trade, and losing them can grind your business to a halt. Unfortunately, many tradespeople assume their tools are automatically covered under their general insurance policy. This is a big no-no!

Ensure your insurance policy includes coverage for tools and equipment, and consider adding a separate tool insurance policy to protect your gear against theft, loss, or damage. With Rhino, you can insure your tools up to the value of £10,000. That's a big amount of money, considering your tools are your livelihood - so don't leave them unprotected.

Relying Solely on Employer's Liability Insurance:

If you have employees, you're likely aware of the legal requirement for employer's liability insurance. While this coverage is crucial for protecting your team, relying solely on it may leave gaps in your overall protection.

Remember, employer's liability insurance only covers injuries or illnesses suffered by any of your employees while on the job. It doesn't extend to clients, subcontractors, or members of the public. To ensure comprehensive coverage, your trade insurance should always start with public liability insurance, and everything else should grow from this to address any potential issues.

Rhino Trade Insurance Is Here To Cover You

There you have it - the top mistakes tradesmen and women make when choosing trade insurance. Now that you're armed with this knowledge, it's time to evaluate your insurance policy and decide whether it needs tinkering. 

Your business is your pride and joy, so give it the protection it deserves. Don't let these common mistakes undermine your hard work. Get in touch with Rhino Trade Insurance today and protect your future. Call our trade insurance brokers at 0116 243 7904.