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In the first part of our focus on insurance, Paul Hildyard at Allcover Insurance answers your queries on getting the right cover.
Q. With regards to tools cover, are the tools covered in the van overnight?
A. Certain insurers will provide cover for tools left in a van overnight even if it is parked on the road, but you will need to check your policy wording very carefully. If such cover is provided, insurers will look for signs of forced entry like a broken window or locks etc. They will not cover you if you leave your van unlocked while unloading and your tools are stolen, so take care!
Q. How much tools cover can I get?
A. Depending on the insurance company, there are policies which offer £1,000, £1,500, £2,500, or £10,000 hand tools cover. Some of them will include your own plant and machinery under this section too, others will have a separate section for these.
Q. What tools are covered?
A. As a general rule if you pick up the tool and apply it to the work, it is classified as a hand tool with most companies. If, however, you have to pick the work up, say for example a plank of wood which you place onto a bench with a fixed saw on, it would be classified as machinery.
Q. I use a self-employed person to help me sometimes and I supply the materials and tools, but they have their own public liability insurance so presumably I don’t need to insure them?
A. Labour only sub contractors, even if they have their own public liability insurance are classified as employees and you are required to have employers liability cover for them (by law).
Q. I’m not really concerned about covering him for Employers Liability, I’ve known him for years.
A. Be careful – even if this person is your best friend! If they have an accident and cannot work and, therefore, don’t have an income, they could still pursue a claim for compensation. A no win no fee claims company or solicitor would consider whether they felt you were liable and, if they thought you had a case to answer, may commence a claim against you. If you did not have employers liability cover, which is, of course, a legal requirement in many circumstances, you would be personally responsible for meeting the claim which could easily run into 10’s of £1000’s of pounds. You could lose your home! Is it worth it?
Q. Can I have all the cover I need under one policy?
A. ‘Contractors all risks’ is a term used for a policy which generally covers a few things, such as public liability, employers liability, plant & machinery cover etc. However, if you are being asked to have this cover in place, the majority of times it will be because you are required to have contract works cover. This provides cover for the work that you carry out, along with materials, up until the point of completion.
Depending on the policy, it may be possible to have contract works added to your Public Liability policy, otherwise a separate stand alone policy could be arranged.
Q. I damaged a bath I had fitted while I was carrying out tiling – when I tried to claim they said I wasn’t covered.
A. The majority of companies exclude items that are part of your ‘contracted works’ under public liability, so if you damage something that you have fitted or built which is part of the contract that you are working on, it wouldn’t be covered. Again you would need contract works cover to protect the work you are doing until completion of that particular contract.
For further information on Allcover Insurance visit: Allcover Insurance | Home.
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.
