Tradesman insurance protects UK tradespeople against financial losses from accidents, damage, theft, or injury claims, giving builders, electricians, and other trade professionals the cover they need to stay compliant and guard against risk.
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Tradesman insurance protects trade professionals – builders, electricians, plumbers, plasterers, decorators, carpenters, roofers, and similar manual workers – from the financial risks that come with running a trade business.
A comprehensive policy bundles essential covers into one: public liability insurance protects you from injury and damage claims, tool insurance replaces stolen equipment, and employers' liability covers staff-related claims. It also handles legal costs when things go wrong.
And things do go wrong. A client trips over your tools and breaks their wrist. Your van gets broken into, and thousands of pounds of equipment disappear. You drill through a water pipe and flood someone's newly renovated home.
These aren't nightmare scenarios – they're everyday risks that tradespeople face. Without proper insurance, any one of them could cost you tens of thousands of pounds and potentially close your business.
As already mentioned, tradesman insurance combines several types of cover into a single policy designed specifically for people who work in the trades.
Rather than taking out separate policies for every risk you face, you get protection for the most common problems trade businesses encounter: client injuries, property damage, stolen equipment, and employee-related claims.
The policy is for builders, electricians, plumbers, plasterers, decorators, carpenters, roofers, and other manual or trade professionals. If you work with your hands, use tools and equipment, visit client sites, or employ staff, you’ll probably need this type of cover.
No. Public liability is just one component – tradesman insurance bundles this with tool cover, employers' liability, and other protections into one policy.
A comprehensive tradesman insurance policy will include several different types of protection. You can usually pick and choose the elements that match your business needs, creating a policy that works for you without paying for cover you don't require.
Public liability insurance is the most common element found in tradesman insurance policies. It protects you if your work causes injury to someone or damages their property. If a client claims you've caused an accident or broken something on their premises, for instance, this cover would pay for compensation and legal costs.
Most contracts and some premises require you to have a certain level of public liability cover before you can start work.
This is legally required if you employ anyone, even part-time or casual staff. It covers compensation if an employee is injured or becomes ill because of their work. The legal minimum is £5 million of cover, and you can be fined up to £2,500 per day if you don't have it in place when you should.
This protects your equipment against theft, loss, or damage. For most tradespeople, tools represent thousands of pounds of investment. If your van gets broken into or tools are stolen from a site, tool cover replaces them so you can get back to work quickly. This element can be particularly valuable since standard home insurance rarely covers tools used for business purposes.
Working in the trades is physical – and injuries do happen. This insurance replaces your income if you're hurt and can't work. If you break a leg or injure your back, personal accident cover provides a weekly payment to help cover your bills while you recover.
This covers materials and tools while you're transporting them. Standard van insurance usually only covers the vehicle itself, not the contents. If you regularly carry expensive materials or equipment in your vehicle, goods in transit cover fills that gap.
Professional indemnity protects you if someone claims your advice, design, or specification caused them financial loss. This is more relevant if you offer consultancy, design work, or project management alongside your hands-on trade work.
For example, if you recommend a particular product that later fails and causes damage, professional indemnity would cover the resulting claim.
Yes, most insurers offer flexible tradesman insurance policies where you can combine different elements based on your specific needs.
A self-employed electrician working alone might only need tradesman public liability insurance and tool cover. A building company with five employees would need to add employers' liability. Someone running a maintenance business with several vans might bundle vehicle insurance into the same policy.
It depends. The cost of tradesman insurance can vary significantly depending on your trade, the level of cover you need, and your business circumstances.
As a rough guide, basic tradesman cover might start from around £8 to £15 per month for a sole trader in a lower-risk trade like decorating. More comprehensive policies that include tool cover, higher liability limits, and additional protections typically cost £20 to £50 per month.
Higher-risk trades pay more. Roofers and scaffolders generally face higher premiums than painters because the work carries a greater risk of injury and damage. Electricians often pay more than decorators because electrical work can cause serious damage if something goes wrong.
Several factors influence how much you'll pay for tradesman insurance: your specific trade and the type of work you do matter. The cover limits you choose make a difference – £5 million of public liability cover costs more than £1 million, for example.
If you employ staff, premiums increase because you need employers' liability. Your claims history affects pricing; if you've made several claims in recent years, you'll pay more. The value of the tools you want to insure directly impacts the tool insurance element of your premium.
Paying annually rather than monthly almost always saves money. Monthly payments are convenient but usually work out 10% to 20% more expensive over the year once interest and fees are included.
If you can afford to pay upfront, an annual payment typically offers better value.
If you're a sole trader without employees and don't need extensive cover, you can find more affordable options. Basic tradesman policies start at around £8 to £12 per month. Many providers offer pay-monthly plans specifically designed for sole traders, making it easier to manage cash flow without large upfront costs.
However, 'cheap' doesn't always mean 'good value'. The lowest-priced policies often come with lower cover limits, more exclusions, and less comprehensive protection. Make sure you understand exactly what's covered before choosing based purely on price.
Start by getting quotes from several insurers. Many comparison sites let you enter your details once and see prices from multiple providers, which saves time.
Major insurers like Direct Line, Simply Business, Towergate, and Tradesman Saver all offer tradesman insurance policies. Some specialise in trade insurance and understand the sector better than generalist insurers, which can mean more appropriate cover and better claims service.
You're not legally required to have tradesman insurance if you're self-employed and don't employ anyone. However, going without it is extremely risky. If you cause an injury or damage property, you're personally liable for compensation and legal costs, which could run into hundreds of thousands of pounds.
Many clients, contractors, and premises won't let you work without proof of insurance. If you want to work on commercial sites, for large contractors, or in certain premises like schools or hospitals, you'll need to show valid public liability insurance tradesman cover before you start.
Even if it's not legally required, tradesman liability insurance is a fundamental business protection that safeguards your finances and lets you work with confidence.
Yes. Tradesman insurance is an allowable business expense, which means you can deduct the cost when calculating your taxable profit. This includes all elements of your policy: public liability, tool insurance, employers' liability, and any other business-related cover.
Keep your insurance invoices and policy documents with your other business records. Your accountant will include insurance costs as a business expense when preparing your accounts and tax return.
This depends on your policy and how you work with subcontractors. Most tradesman insurance policies don't automatically cover subcontractors' work. If a subcontractor causes injury or damage while working on your project, your public liability insurance generally won't cover claims arising from their actions.
The expectation is that subcontractors carry their own insurance. Before hiring subcontractors, check that they have valid insurance and ask for proof of cover. Some policies offer an extension to cover subcontractors' work, but this usually costs extra and comes with conditions.
If you employ people directly rather than using genuine subcontractors, they must be covered under your employers' liability insurance.
Insurance is a key tool for reducing risk in your business for unseen events, but even the best policies can include gaps or take an indeterminate amount of time to pay out.
In the event that your cash flow takes a hit while you're waiting on a claim, or if something falls outside your cover, quick access to business finance can help keep your business on track.
iwoca’s flexible loans are designed to work around the way you actually run your business. You can borrow what you need, repay early with no fees, and top up as your circumstances change, giving you a financial buffer when the unexpected happens.
Insurance can protect you from the impact. Finance can help you bounce back faster. Together, they form a stronger safety net for your business.
Ready to give your business more financial flexibility? Apply for an iwoca small business loan today and get access to flexible funding when you need it most.
