As a trade professional, it’s important to take insurance seriously. Whether it be your employees, your tools or your general health, there are valuable assets that you need to take care of!
It’s the same whether you run a business or work as a sole trader: the best way to keep yourself working and making money is to know your way around the different types of trade insurance.
When buying insurance, it's always important to compare your different options. Don't rely too much on your bank, as it will only offer you its own policies. Instead, it will be a good idea to speak to a well rated local insurance broker.
Public Liability Insurance (PLI) - This is the insurance that every tradie needs: it covers your business against incidents resulting from your work. This includes damage to a third party’s property as well as injury or death to members of a third party. It’s important to consider your PLI carefully, as it can form the basis of your other policies.
Tools - It’s a sad fact that tool theft, particularly from locked vans, is on the rise. In addition to theft, Tool Insurance will cover your power and hand tools against accidental damage and loss. If you do leave your tools in your vehicle at night, be sure to extend your policy to cover this (and of course, be careful!)
Contract Works - Are you a contractor? While you are working on a site, you can be liable for the equipment and materials. Depending on what kind of work you do, you could get insured for up to £500,000!
Stock - Do you buy or sell trade or consumer goods? This insurance will cover your stock, usually as part of a Contents Insurance policy. If your stock is damaged, lost or stolen, it could be a disaster for your business.
Buildings Cover - Do you own a piece of property as part of your business? If it is damaged as a result of an incident that is covered by your insurance, your policy can pay for repairing or rebuilding it.
Business/ Office Equipment - If your company utilises standard business or office equipment, this kind of insurance can cover it against theft, accidental damage and loss.
Hired in Plant - Even when you simply hire a piece of equipment in a plant, it’s crucial to protect your investment. This insurance will cover you and pay compensation for any damage done to the plant. Be sure to consider this one carefully, as it will only work in accordance with the terms of your hiring agreement.
Own Plant - If you actually OWN your own plant, then that is definitely an asset that needs protecting! This will cover you against damage or an accidental loss of any equipment in your plant.
Professional Indemnity Insurance (PII) - If you are a specialist Pro, your calculations can count for a lot. PII will cover you in the event of you making an error in your work, or if your client does not feel your work is up to par. This is essential, as if your work results in a financial loss by your client, they can file a claim against you!