Why do contractors and subcontractors need insurance?
In the construction industry, both contractors and subcontractors face a myriad of risks daily — from accidents on-site to legal liabilities. Insurance acts as a safety net, ensuring that these professionals can manage risks effectively without jeopardising their business’s financial health.
What insurances should contractors and subcontractors consider?
Contractors and subcontractors should consider a variety of insurances to protect their business interests. These cover a range of potential issues, from liability for accidents to equipment damage and beyond.
We’ve outlined some of the most common types of insurance in this post. These coverage options are ones we most recommend businesses having to ensure you and your company are protected from unforeseen events.
Public liability insurance
What is it?
Public Liability Insurance is essential for covering claims of property damage or personal injury caused to third parties as a result of your business activities. It’s a fundamental cover that protects against the high costs of claims and legal action.
Do I need it?
Yes, if you’re a contractor or subcontractor. This insurance is crucial as it covers the costs of legal proceedings and damages if you're found liable for injury or damage at your worksite. It ensures that a single incident doesn’t financially devastate your business.
When is it beneficial?
- Accidents on-site: Covers claims if a third party is injured or their property is damaged due to your business activities.
- Legal defence costs: Assists with the financial burden of legal fees if sued for damages or injuries caused by your business.
- Client property damage: Essential when working in environments where there's a risk of damaging client property, such as in construction or maintenance.
Learn more about the coverage we provide at Tradesure.
Public liability insurance.
Personal accident insurance
What is it?
Personal Accident Insurance provides compensation for loss of income, medical expenses, and hospitalisation if you suffer from an accident while on the job. This type of insurance is designed to help maintain your standard of living if you're temporarily unable to work.
Do I need it?
Absolutely. For contractors and subcontractors, whose work often involves physical labour in potentially hazardous conditions, Personal Accident Insurance is vital. It ensures that an injury doesn’t lead to severe financial strain due to lost income.
When is it beneficial?
- Injury leading to work absence: Provides financial support if you are unable to work due to an injury incurred on the job.
- Medical expenses: Helps cover medical bills associated with accidents, ensuring personal health doesn’t impact your financial stability.
- Income support: Offers a substitute income while you're recovering and unable to earn your regular income.
Learn more about the coverage we provide at Tradesure.
Personal accident insurance
Tools insurance
What is it?
Tools insurance is a specialised form of coverage designed to protect the tools and equipment essential to your trade. Whether they're lost, stolen, or damaged, this insurance ensures you won't have to shoulder the full cost of replacement or repair, keeping your business operational with minimal downtime.
Do I need it?
Yes, especially if your business relies heavily on tools and equipment. Considering the high cost of tools and the risk of theft or damage on job sites, having tools insurance can provide significant peace of mind and financial security, ensuring you’re always ready for the job at hand.
When is it beneficial?
- Theft of equipment: Protects against the financial loss from stolen tools, whether from your worksite or vehicle.
- Accidental damage: Covers repair or replacement costs if your tools are accidentally damaged during work.
- In transit: Ensures that your tools are covered not only on-site but also when in transit between jobs.
Learn more about the coverage we provide at Tradesure.
Tools insurance
Professional indemnity
What is it?
Professional indemnity insurance is crucial for protecting businesses against claims of negligence or breach of duty arising from advice or services provided. This insurance covers legal costs and expenses, as well as any damages or costs that may be awarded, providing a safety net that allows you to work with confidence.
Do I need it?
Absolutely. If your business involves giving advice or providing a service, professional indemnity insurance is essential. It protects you against the legal costs and claims for damages that may arise from an act, omission, or breach of professional duty in the course of your work.
When is it beneficial?
- Advice leading to financial loss: Covers claims where your professional advice may have led to a client’s financial loss.
- Mismanagement accusations: Protects against claims of negligence or mismanagement in your professional services.
- Contractual errors: Provides protection if errors in your work or the services provided lead to a breach of contract claims.
Learn more about the coverage we provide at Tradesure.
Professional indemnity
Can I pay by the month?
At Tradesure, we understand that different financial situations mean different needs for payment flexibility. That’s why we offer the option to pay your premiums monthly, allowing you to manage your cash flow more effectively and ensure continuous coverage without financial strain.
Get a quote for your business
Ready to protect your business with comprehensive coverage? With Tradesure, you're not just getting insurance; you're gaining a partner who understands the ins and outs of your industry.
Don't wait —
reach out to our friendly support team, and secure your business's future today.
