What Cover You Need and How to Get It Right
If you run a trade business or work as a sole trader, the right insurance is as important as your tools. A solid policy protects your reputation, your cash flow and your clients when the unexpected happens. This guide explains what Trades Insurance is, who needs it, what it should include, and how to buy cover that actually fits the work you do on site.
What is Trades Insurance?
Trades Insurance is a tailored package that combines the key covers most tradespeople need. It is suitable for sole traders, partnerships and limited companies across the construction industry. Think electricians, plumbers, carpenters, roofers, plasterers, decorators, tilers, HVAC engineers, groundworkers, landscapers and many more.
Rather than buying lots of separate policies, a good Trades Insurance package groups the essentials into one schedule, with limits set to the risks you face every day.
Core covers to consider
Public Liability Insurance
Covers injury to third parties and damage to their property caused by your work. This is the cornerstone for most trades. Typical limits are £1 million, £2 million or £5 million. Some main contractors and local authorities insist on a minimum limit, so check your contracts before you quote.
Employers’ Liability Insurance
A legal requirement in the UK if you employ anyone, even part time or temporary. It covers injury or illness suffered by your employees in the course of their work. The standard limit is £10 million. Labour‑only subcontractors may count as employees, so make sure you have this in place if you use them.
Contract Works or Contractors All Risk
Protects the works in progress and materials on site against events such as fire, flood, storm, theft and accidental damage. If part of the job is damaged before handover, this section pays to put it right so the project can continue.
Tools, Own Plant and Hired‑in Plant
Your tools are your livelihood. You can insure hand tools and power tools at home, in a locked van and on site, usually up to a set overnight limit with security conditions. Own plant covers equipment you own. Hired‑in plant covers equipment you rent, and should match the liability in your hire agreements.
Professional Indemnity
If you design, specify materials, advise a client, or sign off drawings, add Professional Indemnity. It covers financial loss arising from errors in your professional advice or design.
Personal Accident
Pays a weekly benefit or lump sum if you are injured and cannot work. This can be a lifeline for sole traders who do not have sick pay.
Commercial Vehicle and Goods in Transit
Covers your van and the materials you move between suppliers, your yard and site. Many insurers will bundle this with your main package to keep the programme simple.
Legal Expenses and Cyber
Legal expenses can help with contract disputes or employment matters. Cyber cover is worth considering if you hold client data, take online bookings or issue invoices by email.
What affects the price of Trades Insurance?
Insurers look at a handful of practical details to set your premium and terms.
Your trade and activities. – A roofer usually attracts a different rate to a painter and decorator. Include height, depth and any heat work you carry out.
Turnover and wage roll. – These drive your liability exposure. Be accurate and split wages by manual and clerical where asked.
Claims history. – Recent or frequent claims can raise premiums. Good risk management helps.
Locations and security. – Tool cover often has specific overnight security conditions for vans and lock‑ups.
Subcontractors. – Clarify whether you use bona fide or labour‑only subcontractors, and check contract wording about whose insurance responds.
Common gaps and how to avoid them
A common mistake is assuming that a main contractor’s policy automatically covers you. It might not. If you are relying on someone else’s insurance, always ask for written confirmation that you are named on the policy and included for the full project value and the specific work you will be carrying out. Without that confirmation, you may find you are not insured when something goes wrong.
Another frequent issue is underinsuring tools and plant. It is easy to forget that the value of equipment rises over time, and insuring at the original purchase price will leave you short if you need to replace them today. Always calculate the current replacement cost, and check the overnight limits and storage conditions set by your insurer.
Hired-in plant is another area where subcontractors get caught out. Hire contracts usually make you responsible for loss or damage, so if your insurance limit does not match the contract requirements, you could face a large bill. Make sure your indemnity limit is set correctly to cover the terms of any hire agreement.
Employers’ Liability is often overlooked, especially by those using labour-only subcontractors, apprentices, or trainees. In the eyes of the law, these people count as employees, which means Employers’ Liability cover is mandatory. Failing to arrange it could not only leave you uninsured but also expose you to heavy fines.
Finally, many tradespeople assume that a standard buildings insurance policy will protect work in progress. It does not. If you are altering, extending, or building, you will almost certainly need a Contract Works section to protect against damage or loss before completion. Without it, any storm, fire, flood, or theft during the build could leave you with serious financial exposure.
How to choose the right cover
1. List your activities. Include anything occasional such as hot works, work at height, confined spaces or depth.
2. Check contract requirements. Note minimum liability limits and any JCT or joint‑names obligations.
3.Set realistic sums insured. Think replacement values for tools and plant, and the maximum value of works you could have exposed at any one time.
4. Review exclusions and conditions. Pay attention to tool security, hot works permits, height and depth limits and storage of flammables.
5. Ask for a single package. One schedule that combines liability, contract works and plant reduces gaps and keeps admin simple.
Practical ways to keep premiums competitive
* Use voluntary excesses where sensible.
* Split your wage roll correctly and keep good records of subcontractor status.
* Fit approved locks and trackers on vans and declare them.
* Store high value tools off the vehicle overnight whenever possible.
* Share risk controls with your broker, such as permits to work, RAMS and training certificates.
Why buy through a specialist broker
Construction risks are not one size fits all. A specialist broker like Construction Insure understands trade activities, contract requirements and the way claims are handled on site. We will ask the right questions, tailor your limits and conditions, and place cover with insurers who understand construction. You get clear documents, support at renewal and help when you need to claim.
Trades Insurance is not just paperwork. It is a safety net that protects your business, your clients and your future. Get the essentials in place, set the right limits, and work with a broker who understands how you operate. That way, you can get on with the job, confident that you are properly covered.