In part two of our feature, AllCover Insurance explores the essential coverage for the trades.
Q. I’ve told my insurance company I’m a builder, surely this covers me to do anything?
A. Be very careful! Nowadays you need to tell your insurance company everything you do in isolation, from bathroom fitting to property maintenance to fencing. There are so many different occupations, you need to inform your broker or insurance company exactly what you do. Saying you are a builder is considered too much of a generalisation and won’t necessarily cover you, for example, to fit a bathroom or repair a flat roof.
As a further example, property maintenance has emerged as its own category over the past few years, so if you could ‘just repair a roof ‘, ‘fix a wall’, ‘repair a leaking tap’, check that your policy covers you to carry out this type of work.
Q. Are there any other terms I should look out for within my insurance policy?
A. As an example, some insurers may apply percentage restrictions on what you can do, for example they might say you can do up to 15% painting and decorating, or 10% roof work, while others will only cover you for specific types of work you have disclosed to them. Be aware of your policy cover!
Also check that the type of premises you work on are covered. A large number of insurance policies will have restrictions such as “private dwellings, shops, offices, hotels only”. Read it word for word! For example, work carried out in schools, hospitals or factories may not be insured, or blocks of flats over a certain height may be excluded. Know your policy limitations and cover before it is too late!
Q. What should my level of cover be?
A. Public liability cover is generally available for a minimum indemnity limit of £1,000,000, although limits of £2,000,000, £5,000,000 and £10,000,000 are also readily available. Whilst it sounds a lot, £1,000,000 is likely to be insufficient these days, with £2,000,000 or £5,000,000 becoming more accepted as the minimum level of cover required. Again it depends on your circumstances and the type of work carried out.
Q. Are there any additional policies or covers I should consider?
A. Commercial legal expenses can prove to be a very valuable cover extension. For a sole trader, this can cost as little as £52.00 a year, and even for a limited company or partnership with a wage roll up to £499,000 it could cost as little as £89.00. Apart from providing access to helplines for legal & tax advice, the policy can cover employment protection and compensation awards, tax protection, legal defence costs from business related prosecution, contract and debt recovery. This is an extremely valuable policy to have and could end up saving you an awful lot of time, money and worry.
In summary… Know your insurance policy!
Despite many beliefs, insurance does not cover everything that goes wrong!
Every policy will have conditions/ restrictions and endorsements. Whilst this may look like too much hard work, take the time to read your documentation. It can be the difference between being covered or not. Make sure it covers you at the premises you work at and for the work you do.
For further information on AllCover visit Allcover Insurance | Tradesmen and Contractors Insurance.
Allcover Insurance Brokers is trading name of GRP Retail Limited who are authorised and regulated by the Financial Conduct Authority under reference 745618. GRP Retail Limited is registered in England under company number: 09850559 and our registered office address is 7th Floor Corn Exchange, 55 Mark Lane, London, England, EC3R 7NE.
