Increasing Risks Faced By Tradespeople

As the general public lose confidence in their own DIY skills and understanding, Tradespeople are in higher demand than ever, with more work placed on their shoulders. Although this means more business for self-employed and small business owners, it can also mean new risks that haven’t been considered before.

It has increasingly become the standard for homeowners and renters to rely on not just the skills of tradespeople, but their advice and guidance as well. You may be called out to fix a leak, but you will also be asked to advise on how to prevent the same thing happening in the future, or asked for directions to maintain the system.

What many people aren’t aware of, is that should this advice cause damage or a loss to the customer, the tradesperson may be liable for the cost of that damage.

 

FSB Insurance Service is concerned about this vulnerability that many tradespeople are unaware of, and have managed to secure a unique, first-to-market insurance product to cover this risk at a surprisingly low cost. It provides Professional Indemnity cover up to a limit of £100k for just £25 extra per year + Insurance Premium Tax.

Professional Indemnity insures a person from suffering a financial loss due to claims of negligence, defamation, breach of confidence etc. It covers your professional risk for errors and omissions, legal costs and expenses incurred in defending you, as well as fines that may be awarded, for alleged service that causes your client damages.

Here’s a summary of what the FSB Tradesman and Professional policy can do for you.

Public and Products Liability

This covers your business against injury or damage caused to another person (or their property) as a result of business activity (for example, if you’re a plumber whose work causes someone’s cellar to flood!) or arising from any product you’ve supplied (for example, a faulty light switch if you’re an electrician).

The policy includes indemnity up to £5m but increased limits are available too.

Professional Indemnity

This is an add-on feature and covers £100k Professional Indemnity for just £25 surcharge + IPT, with increased limits available.

Other Additional Features can Include:

Tools limits of up to £10k (including Goods in Transit)

Most policies will provide tools cover for up to £5,000, this policy doubles that and includes ‘Goods in Transit’ as standard. This means you don’t need to worry when moving from job to job, as your tools are totally covered, as long as they’re locked away.

Business Equipment and Money Cover up to £25k (inner limits apply)

Business equipment can include items such as computers or your phone.

Also, you have up to £1,000 of cash money covered as part of this section, which is a great benefit if you take any payment in cash.

Employers Liability for up to 10 employees (and automatic temporary employees extension)

Obviously, if you employ (including volunteers, work experience and some subcontractors, read more on that here) you are legally required to have Employers Liability insurance. This is included at no extra cost under this policy.

 

The above points are to illustrate some of the unique features of this insurance package, and is not a comprehensive list of the benefits this policy provides. For more information, please contact FSB Insurance Service.

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