Why is Tradesman insurance important?

With the construction industry keen to increase activity to meet housing and ambitious commercial projects, tradesmen are in high demand. Finding a tradesman can be challenging, even for smaller domestic jobs.

Currently, in Ireland, there are 160,000 people employed in the sector, compared to 200,000 in the mid-2000s.^[1]

However, according to the Construction Industry Federation, the sector should grow to meet the demand. As it becomes increasingly more technologically driven, this may attract a younger workforce.[2] With the expectation that this sector will grow, it’s important to have the correct insurance in place to protect yourself from risk and hazards.

Whether you’re a builder, carpenter, plumber, or a civil engineer, as a tradesman, you belong to a group of workers skilled in a variety of highly specialised trades and crafts. Tradesmen insurance is designed to protect you, your business, employees, and customers, whether you run a large construction business, or are a tradesman working alone.

How can you protect your own tools and equipment?

Your tools and equipment serve as an extension of yourself—without them, your job becomes alarmingly difficult. Consider tools and equipment cover, which can be offered on a ‘commercial all-risks basis, meaning any risk not mentioned in the contract is covered. It insures tools and larger equipment such as excavators and diggers.

Theft from unattended vehicles is often excluded, but you can purchase an extension to account for this gap. Because motor insurance does not cover the tools and equipment inside your vehicles, tradesmen usually purchase commercial motor cover and a plant tools and equipment policy.

Based on your business operations, you can split cover to apply only to your premises or to your worksites.

How can a tradesman know what type of insurance they require?

Tradesmen face all sorts of different risks depending on their specific occupation. To protect your financial viability as a tradesman, you will need a bespoke policy that addresses your unique risks.

Although the risks between different tradesman occupations vary considerably (for example, an electrician and a bricklayer on high scaffolding will have different risks), one common risk among all tradesmen is a liability. Tradesmen typically work away from their premises, meaning they are almost always working with and on a third party’s property. The risk of injuring third parties or damaging their property looms over a tradesman’s daily operations.

Why is insurance important?

You should always have the appropriate insurance in place to protect yourself against unforeseen circumstances, no matter what industry you operate in.

The following types of liability cover should be considered to account for a tradesman’s inherently high liability risks (although not all are legally required):

• Employers’ liability is mandatory if you have employees besides ‘close’ family members. It insures against injuries sustained or damage caused as a result of your employees’ work.
• Public liability is strongly recommended to protect against the threat of injuring third parties or damaging their property. You may be required to purchase public liability to comply with your customers’ contractual conditions.
• Products liability is defence against accidental third-party injury or damage caused by your products. Products include mostly everything manufactured, sold, or tested by your employees.
• Contractors All Risks insurance: to protect the contract you are working on is all-risk insurance, including contract works, hired-in plant, own plant, and tools under one policy.
• Professional indemnity can cover you against claims of compensation made by a client if you have made a mistake or are found to have been negligent.

Sources:

1. https://www.independent.ie/business/irish/shortage-of-tradespeople-holding-back-construction-39902830.html
2. https://www.irishtimes.com/news/ireland/irish-news/harris-says-there-is-significant-shortage-of-skilled-tradespeople-1.4664485