Tradesman / Construction All-risks insurance
Tradesman is a very generalised term for a group of highly skilled and dedicated individuals covering everything from plumbing and electrical work through to construction, carpentry, roofing, and a host of other specialist trades. While in the vast majority of cases, a job will go without a hitch there are always those occasions when things don’t go quite according to plan.
In cases like this, whether it’s unintentional property damage (from muddy boots ruining a carpet to damage to the property itself), or missing deadlines on contracts, it’s important to make sure you’re financially protected from the possible consequences of various risks.
At Business Insurance Service, we understand not just the insurance industry, but the commercial sector too. Our brokers have years of experience and expertise in finding tradespeople from across all disciplines the right kind of All-risk insurance protection. We’re also specialists in Contract Works insurance, giving both sole traders, SMEs, and large building contractors the protection they need.
This short video outlines the costly consequences that the construction sector experienced as a result of occupational health and safety failings this past year.
Video: The Real Cost of Workplace Illness and Injury in Construction
Core insurance – what every tradesperson needs
There are certain types of insurance (or core elements) that every trades and construction insurance should have. These are All-risk policies that provide you with the essentials, such as Public Liability, trade motor insurance, professional indemnity, or product liability.
Public Liability – this is the one type of insurance cover that every business or trader, regardless of their profession – should have. As tradespeople are often working on other people’s property, it’s essential to protect yourself against claims for damage to property or even personal injury compensation. It may also be a contractual requirement that you have public liability of a minimum amount (usually cover of at least £2-5million) before a customer will allow you to start work on their premises.
Employer’s Liability – this is the only type of commercial insurance that is a legal requirement if you employ anyone, even on a sub-contracting or part-time basis. Even some family members can count as employees, and failure to have Employer’s liability insurance can result in a hefty fine.
Contract works or Contractors All Risk (CAR) insurance
Construction projects, whether it’s a single building or a large, multi-unit site, can be exceptionally complex, and in many cases, subject to strict completion dates that if they’re missed can result in heavy fines for the construction company carrying out the work. CWI, or Contact Workers All-Risk insurance, provides you with cover for work that is being carried out on a site. If the progress of that work is delayed or damaged through natural events, vandalism or theft, then CWI can help to repair the work and minimise the cost to the construction company.
Bear in mind that CWI can be a very complex type of insurance, so it’s important to talk to an experienced broker when arranging cover. CWI can also insure the construction company for any defects found during final testing, or at the time of hand-over/sign-off.
Extensions can be added to your CWI cover that can provide additional insurance against:
- Professional fees incurred in reinstatement of the works
- Restoration of plans or drawings
- Expediting expenses, such as overtime
- JCT contract conditions
- Off-site storage
- Debris removal
- Public authority requests
Other covers you may need could include:
Personal accident insurance – it’s not just cover for other people and their possessions that’s important – personal accident insurance is vital too. Most tradespeople are self-employed, which means if they can’t work because of an accident or injury, the income stops. Personal accident cover will ensure that even if you can’t get back to work, there is still money coming in to cover bills such as your mortgage or rent.
Specialist vehicle cover – normal motoring insurance will not cover a vehicle for business use, so tradespeople and contract workers will need to take out specialist commercial vehicle insurance. This also often allows you the option of adding extra cover to protect contents such as tools, as long as they are not left in the vehicle overnight.
Professional Indemnity – As a professional, you and your business are expected to deliver a quality of service that falls within the expected accepted standards of your industry. If mistakes are made and a client sues you then this could be financially devastating to your business. Professional indemnity insurance gives you the reassurance that you are protected against the cost of a lawsuit or claim.
How Business Insurance Service can help
Whether you’re a sole trader or a large construction company, your insurance portfolio has to be up to date and provide you and your business with the right level of protection. Rather than trying to find Contract Works Insurance or tradesperson insurance by hunting through countless websites, let us do it for you.
As preferred brokers working with some of the largest insurance providers in the UK, we have immediate access to a huge range of policies for businesses, tradespeople and construction companies. We provide our customers with a bespoke service, creating insurance portfolios that are specifically tailored to your individual needs, and your budget.
We’re excited to provide MyWave Connect to our clients. This resource portal is your one-stop source for not just insurance but all your risk management, compliance, safety, well-being and other business needs.