Tradesman policies are suited to those smaller businesses of say up to 10 employees that trade from home or from a third party site, with no business premises to insure. Construction policies are for those mid to large companies who require a more tailored approach. The main covers afforded by such policies are detailed below.
This provides cover in respect of accidental bodily injury to the public including damage to third party property. Generally the insurer will also include “Products” liability which will provide cover for items repaired, serviced or installed in the course of the tradesman’s duties.
If you have employees, casual workers/temporary staff, you are required by law to take out Employers Liability Cover. Volunteers can also be deemed as Employees even without any form of payment. This form of liability protection covers claims from employees who have been injured or become seriously ill as a result of working for you. It is important to note that it is the insurer on cover at the time of the incident happening that responds, as historically there have been long tail illnesses that manifest over a period of years, before resulting in a formal claim. The insurance industry has responded to this by setting up the Employers Liability Tracing Office (ELTO). Since April 2011 all policies with Employers Liability are being recorded on a centralised database. This helps prospective claimants track down their employers liability insurer, should they need to make a claim. Prior to this, Employers had to retain a copy of their Employers Liability Certificate for a period of 40 years after expiry.
Businesses can protect their tools of the trade from accidental loss or theft. Generally cover is not offered in isolation and is tagged onto a “Core” policy such as Public Liability. Insurers can provide cover for portable hand held tools on site, at home and also contained within a vehicle. Risks to tools in vans (whilst unattended) are high risk for insurers, so generally speaking cover can only be provided for fairly modest sums insured and also restrictions and conditions will apply.
Own & Hired in Machinery & Plant
If you are a building contractor/tradesman you may need to protect your Machinery & Plant that is owned by you, along with any items on hire. This protects against loss, theft or accidental damage. Of course a risk management view will need to be adopted with regards to security of such items. Insurers will calculate the premiums for such equipment on the overall sum insured for machinery & plant and also consideration in respect of the annual hiring in charges.
This covers the work in progress on a construction site for the majority of insurance perils. It is important to reiterate that this only covers the “Work in Progress” and does not cover any of the existing structure. If it is a renovation project, the existing structure would need to be insured in isolation. Contract Works can be purchased on its own, or quite often added to an existing Liability policy as part of a combined package. This type of cover insures only the new work as it is being erected along with the material and fittings.