Most self employed tradesman, will require a number of insurance polices to help protect their business. In the main, self employed persons such as carpenters, joiners, builders, plumbers etc, operate their business without premises. As such, it is usual to purchase a stand alone liability insurance policy. Public liability insurance for the self employed is available for wide number of trade’s including all the high risk ones such as scaffolding or roofing contractors. Policies are usually divided in to three sections.
The premium required, depends on a number of factors, in the fist instance and most importantly, a premium is calculated based on the actual trade being carried out. In essence, the more hazardous the trade, the more expensive the premium will be (especially for employers liability insurance). Some trade’s persons have joint trade’s, especially if they describe themselves as a general builder or handyman. In these cases, it’s important all of the types of work undertaken are disclosed to the insurer, so the correct rating can be applied. For small firms, the rate is calculated on a per capita basis although for larger groups or limited companies it is sometimes possible to have the premium calculated on the turnover of the business. If you have any employee’s (or in most cases if you are a limited company) you will also need employers liability insurance, it is the law that you effect this cover and you must keep certificates of employers liability for a period of 40 years, to prove that you have had cover in force. There are some exceptions for limited companies and advice can be taken at the time of quotation.
You can choose your indemnity limit for tradesman liability insurance. Two million pounds is a typical sum insured, but for some trade’s a higher amount is often needed. If you sub contract work, you main find that your main contractor asks you for a certain sums insured and for evidence of cover before you are allowed to start work. A third section of the policy will provide cover for tradesman tools and any hired in plant.
