Posted on: 06 June 2018
Having the right contractor insurance not only demonstrates professionalism but also your care and commitment to keeping your clients property safe. Whether you’re a plumber, a joiner, or a handyman; you could be staking a huge financial wager by not having the right cover in place.
So what are the most important covers to consider as a contractor? And how would they protect you if something unexpected happened?
There are two main types of liability insurance to consider. Public liability insurance ensures that you’re protected against accidental damage to customers’ property and can also protect you financially against claims for third party injuries deemed to be caused by you or your business.
Employers’ liability insurance is required by law if you hire staff, even if they are part time or temporary. Site workers can be at greater risk of accidents due to the nature of the work they do, particularly when working with plant and machinery. Having this cover in place can protect your business against the financial exposure of employers’ liability claims and usually offers up to £10M protection as standard.
Tool and equipment cover
You’re probably reliant on a number of tools – handheld, power tools or equipment that you use daily. Depending on the nature of your work, these could be quite costly and hard to replace. If your business equipment is of any value then you need tool insurance to protect it against the unexpected. Theft of tools can be particularly common; especially when left in commercial vehicles overnight. This cover can often be added to your insurance policy, subject to some security conditions.
Personal accident cover
Being self-employed comes with many perks; but one of the downsides is that you are responsible for your own absence and sick pay. One or two days off may not have much of a financial impact, but if you broke a limb leaving you sofa bound for a few weeks, your income could take quite a hit. Personal accident cover as part of your contractor insurance can offer a set amount to substitute your weekly income in the event of an injury. So if you’re a roofer or builder working on site or in any other high risk trade such as window cleaning, you should consider including this cover in your contractor insurance policy.
Commercial legal expenses
As careful as you may be, accidents happen and things can go wrong along the way. If you’re taken to court, legal costs in defending yourself could rapidly rise. Commercial legal protection could take care of these costs, and can also protect you against a number of other scenarios as well. For instance, if you’re subject to a tax or VAT investigation, these costs could be covered by your legal protection insurance. It can also help to protect you against employment disputes and commercial tenancy disputes as well.
Professional indemnity insurance
If you’re an IT contractor or business consultant or giving advice in your professional capacity, you should consider this cover in case someone suffers a financial loss as a result of your recommendations.
Commercial vehicle insurance
Most contractors will use a van daily to get to and from work and carry their equipment. Whatever work you do, if you use your van for business purposes then you need commercial vehicle insurance to protect you on the road.
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Premier BusinessCare can help you arrange insurance to protect you against a number of risks. You can compare contractor quotes online for property maintenance insurance, cleaning business insurance, gardeners insurance, painter and decorators insurance and much more.
If your needs are more complex or you’re looking for some expert recommendations, then give us a call. Our agents are on hand to provide advice on all your commercial insurance needs.
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The information and tools contained in this guide are of a general informational nature and should not be relied upon as being suitable for any specific set of circumstances. We have used reasonable endeavours to ensure the accuracy and completeness of the contents but the information and tools do not constitute professional advice and must not be relied upon as such. To the extent permitted by law, we do not accept responsibility for any loss which may arise from reliance on the information or tools in our Knowledge Centre.