What does a domestic shed, garage, and carport erectors tradesman insurance policy cover?

There will be some types of insurance that a shed, garage, or carport erector will be legally required to have, and others that may be contractually required. This FAQ examines the different forms of cover and whether they are mandatory.

What is included in my tradesman insurance policy?

What is included in your cover will depend on the insurer and the policy you choose.

Some insurance companies will offer a bundle of insurance policies which can be an effective way to make sure you’re fully covered. You may also decide to choose individual policies. Either way, it’s important to check what is covered and how much cover you have.

What insurance do I need?

The main types of insurance you may need typically includes:

• public liability insurance 
• employers’ liability insurance (depending on your circumstances) 
• professional indemnity insurance 
• insurance for your tools.

What is public liability insurance and why do I need it?

Public liability insurance protects you if something your business does (or fails to do) causes damage to property or injury to someone. These claims are common and can quickly add up to thousands of pounds in damages and compensation.

Large organisations often insist you have public liability as part of your contract, but small clients and individuals may also expect you to have it.

If you are a member of a trade association, you may also find they require you to have cover as part of your membership.

What is employers’ liability insurance?

Employers’ liability insurance is a legal requirement if you have any employees, including part-time staff, trainees, or apprentices. It protects you if an employee claims for an injury or accident they suffered as a result of working for you.

You can be fined for not having cover when you should. If you’re not sure whether someone you work with counts as an employee, it’s important to check with an insurer.

What is professional indemnity insurance?

Professional indemnity insurance protects you and your business if you give professional advice that turns out to be wrong and results in a financial loss for your client. This could be advice about design, materials, or specifications.

Do I need tools insurance?

Tools insurance covers you in the event your tools are lost, damaged or stolen.

If you can’t afford to replace your tools when you are suddenly without them, your work, business, and reputation could be seriously affected; you won’t be able to meet project deadlines or carry out work, which could leave you in breach of contract.

If you work on domestic building projects, such as shed, garage or carport installations, then you will need certain types of insurance to make sure you are compliant and properly protected against occupational risks.

What is employers’ liability insurance?

Employers’ liability insurance is a type of insurance that safeguards against claims made by an employee or former employee who suffers injury, harm, or illness as a result of working for you.

You are legally required to have employers’ liability insurance if you have any employees, even if you only have a single worker, or if they are part-timers or trainees.

Who counts as an ‘employee’?

For the purposes of insurance, an ‘employee’ is anyone who works under a written or verbal contract of service or apprenticeship with an employer, whether it’s for manual labour, clerical work, or something else.

Care is required when working with some sub-contractors as they may be counted as ‘employees’ under the rules.

How much employers’ liability insurance do I need?

You must have at least £5 million in cover. You can be fined £2,500 for every day you don’t have it. You can also be fined if you do not display your employers’ liability certificate or refuse to make it available to inspectors when they ask.

How much will my employers’ liability insurance cost?

This will depend on a few factors, including how many employees you have. However, it is relatively quick and easy to get a quote online from an insurer.

However careful you are, there are some risks when working in construction. Having financial safeguards in place not only gives you peace of mind; it also protects you if something goes wrong for which you may be held liable.

What different types of insurance do I need?

This will depend on how your business is set up and the type of work you do. However, as a rough rule of thumb, you may need:

• public liability insurance
• employers’ liability insurance (in certain circumstances)
• professional indemnity insurance
• insurance for your tools.

It may also be sensible to consider financial loss and accident cover.

What is public liability insurance and why do I need it?

Public liability insurance protects your business against third-party claims made against you for damage to property or injury to someone.

These types of claims are common. Even a small incident can result in an order to pay thousands of pounds in damages and compensation.

What is employers’ liability insurance and why do I need it?

Employers’ liability insurance protects you if an employee or former employee suffers injury as a result of them working for you. You are legally required to have this type of insurance if you have any employees, including part-time staff and apprentices.

You may also need cover in respect of some sub-contractors you work with.

If you are in any doubt, check with your insurance company. This is important, as you can be fined for every day you don’t have it when required.

What is professional indemnity insurance and why do I need it?

Professional indemnity insurance relates to professional advice you give that turns out to be wrong, resulting in a financial loss for the client. The advice could be about design, materials, or specifications.

Why do I need to insure my  tools?

If your tools are lost or stolen, you may not be able to work until you replace them. That could mean you are unable to finish certain projects or start new ones. This could potentially damage your reputation and cause serious cashflow issues.

Insurance for your tools means you can replace them and quickly get back to work.

Do I need accident cover?

Having temporary total disablement benefit and capital death benefit means you’ll be financially covered if you suffer an accident that prevents you from working, but so will your loved ones if the worst happens to you.