What insurance do tradespeople need in the UK?▾
Most tradespeople need public liability insurance (essential for working on client properties), employers liability insurance (legally required if you have any employees), professional indemnity insurance (covers advice and design errors), tools and equipment cover, and commercial vehicle insurance. Some trades also need specific cover such as JCT contract insurance.
How much does public liability insurance cost for tradespeople?▾
Public liability insurance for tradespeople typically costs between GBP 150 and GBP 500 per year for GBP 1 million cover. The cost depends on your trade (roofers and electricians pay more than painters), your turnover, the level of cover chosen, and your claims history. GBP 2 million cover is standard for most contracts.
Is employers liability insurance a legal requirement?▾
Yes. If you employ anyone, including apprentices and casual labour, you are legally required to have employers liability insurance of at least GBP 5 million. The only exemptions are family-only businesses and some limited companies with a single director and no employees. Fines for non-compliance are up to GBP 2,500 per day.
Do I need insurance as a sole trader?▾
While not always legally required (except employers liability if you have staff), public liability insurance is strongly recommended for sole traders. Most clients and main contractors will require you to show proof of at least GBP 1-2 million public liability cover before allowing you on site.
What does professional indemnity insurance cover?▾
Professional indemnity insurance covers claims arising from professional advice, design work, or services you provide. For example, if an electrician designs a circuit that later causes problems, or a builder provides structural advice that proves incorrect. It covers legal defence costs and any compensation awarded.
How much tools insurance do I need?▾
You should insure tools for their replacement value (new-for-old). Most trade tools policies cover theft from vehicles (with security requirements), theft from site, and accidental damage. Premiums are typically 3-5% of the declared value. Keep an inventory with receipts or photos as proof of ownership.
Can I get insurance that covers multiple trades?▾
Yes. Multi-trade policies cover tradespeople who work across several disciplines (for example, a general builder who does plumbing, carpentry and bricklaying). The premium is based on your highest-risk trade. Ensure all trades you perform are declared to avoid claim rejection.
What level of public liability cover do I need?▾
GBP 1 million is the minimum but GBP 2 million is the most common requirement for residential work. Commercial and council contracts typically require GBP 5 million. Some large developers and housing associations require GBP 10 million. Always check your contract requirements before choosing a level.
Does commercial vehicle insurance cover my tools?▾
Standard commercial vehicle insurance does not cover tools stored in the vehicle. You need a separate tools-in-transit or tools cover policy. Some insurers offer combined commercial vehicle and tools policies. If tools are stolen from a vehicle, you typically need to prove forced entry and that the vehicle had appropriate locks.
How can I reduce my trade insurance costs?▾
Key ways to reduce premiums: pay annually instead of monthly (avoids interest charges), increase your voluntary excess, install vehicle trackers and tool safes, maintain a clean claims history, bundle multiple policies with one insurer, join a trade association for group discounts, and shop around at renewal rather than auto-renewing.