Going self-employed in the trades is one thing. Working out what self employed tradesman insurance you actually need is another. There’s no single answer that fits everyone, because the right cover depends on your trade, your clients, whether you employ anyone, and how you work day to day. But there are core policies that most tradespeople need, and a few extras worth thinking about depending on your situation.
Public Liability Insurance
This is the starting point for almost every tradesperson working on customer property. Public liability insurance for sole traders covers third-party claims for injury or damage arising from your work. If something you do, or something you fail to do, results in a compensation claim against you, this is what protects you from paying it personally.
The reality of trade work is that you’re in people’s homes and businesses, working with tools and materials in spaces other people use. Things go wrong. Surfaces get scratched. Fittings fail. Customers trip over equipment. Most sole traders carry at least £1 million in public liability cover, and many clients require £2 million as a minimum before allowing work to begin.
Employers’ Liability Insurance
If you’re a sole trader with no staff, you don’t need employers’ liability. The moment you take on anyone, an apprentice, a labourer, a part-time driver, it becomes a legal requirement. It covers injury and illness claims made by employees arising from their work, with a minimum cover level of £5 million. Skipping it while someone is employed carries a fine of up to £2,500 per day. If you’re thinking about taking on a first person, sort this before they start work, not afterwards.
Tools and Equipment Cover
Your tools are your livelihood. Replacing a stolen or damaged set of specialist kit can cost several thousand pounds and leave you unable to work in the meantime. Tools cover protects the equipment you use on site, but the policy terms matter. Many policies won’t cover tools left unattended in a vehicle overnight, which is exactly when a large proportion of trade tool theft actually occurs. Check what your policy includes before assuming you’re covered.
It’s also worth making sure the sum insured reflects the current replacement value of your kit, including any tools acquired since you first took the policy out. Underinsurance is a common problem. For a deeper dive into this type of cover, read our page all about tools and equipment cover.
Commercial Vehicle Insurance
If you use a van or any other vehicle for work, your personal car insurance doesn’t cover it. Commercial vehicle insurance needs to reflect how you actually use the vehicle: carrying tools and materials, possibly covering multiple drivers, towing a trailer, or operating across a wide geographical area. Don’t assume your current motor policy covers work use. Most don’t, and if you make a claim while using a personal policy for commercial purposes, you may find it refused.
Professional Indemnity Insurance
If your work involves any element of advice, specification, or design, professional indemnity insurance covers you for claims arising from that advice being wrong. A kitchen fitter who advises on layout. A joiner who designs and builds bespoke furniture to a client’s specification. A plumber who advises on a heating system configuration. All of these carry a professional indemnity exposure even when it doesn’t feel like a professional service in the traditional sense.
Income Protection
This is the cover most self-employed tradespeople think about last, usually because it feels optional until it isn’t. If you’re self-employed and unable to work due to illness or injury, there’s no sick pay to fall back on. Income protection insurance pays a regular amount while you’re off, typically a proportion of your usual earnings, giving you something to live on without burning through savings or taking on debt.
For a sole trader with no financial safety net, being off work for six weeks carries serious consequences. A policy that kicks in after a short waiting period and pays out monthly can make a real difference in that situation.
Contract Works Insurance
If you’re carrying out projects over an extended period, contract works insurance covers work in progress that’s damaged before it’s handed over to the client. A fire on site, storm damage to partially completed work, or vandalism overnight can undo weeks of effort. Standard public liability policies don’t cover the work itself, only third-party claims arising from it. If you regularly carry out larger jobs, this is worth looking at.
Get Tradesman Insurance Built Around The Way You Work
The combination of covers you need depends on your trade, your clients, and how you run your business day to day. There’s no point paying for cover you don’t need, and there’s no point leaving yourself exposed because a policy looked cheaper on paper. At Cotter Insurance, our tradesman insurance helps self-employed tradespeople across the UK build the right cover for the way they actually work. Contact us today, and we’ll handle the rest.