If you run your own trade business as a sole trader, whether you are a builder, plumber, electrician, joiner, decorator or other skilled professional, having the right insurance in place can protect you, your customers and your livelihood.

Some types of cover are legal requirements, others are often specified in contracts, and a few are simply good business practice if you want to safeguard your income.

In this short guide, we look at the main types of insurance you may need if you’re a tradesman or tradeswoman.

Public liability insurance

This is one of the most common types of cover for tradespeople. It protects you if a customer or member of the public is injured or their property is damaged as a result of your work.

For example, if you accidentally cause a water leak that damages a customer’s home, public liability insurance could cover the claim.

While not usually required by law, many domestic customers, commercial clients, and local authorities insist on proof of public liability insurance before work begins.

For more details, see our public liability insurance guide or check GOV.UK’s business insurance advice.

Employers’ liability insurance

If you employ anyone, even on a casual or part-time basis, you may be legally required to have employers’ liability insurance. This covers you if an employee is injured or becomes ill because of their work for you.

The law applies even if you only hire someone on a temporary or trial basis. Failing to have cover when it is required can result in fines of up to £2,500 for every day you are uninsured.

See the HSE guidance and our explainer: What is employers’ liability insurance?

Cover when using subcontractors

Many tradespeople work with subcontractors. If you hire labour-only subcontractors who work under your supervision and use your tools, they are treated as employees for insurance purposes and must be covered under your employers’ liability policy.

If you use bona fide subcontractors who work independently and supply their own tools and materials, they should have their own insurance. Always check their policies before work starts.

We explain the differences in our guide: Do you need insurance if you hire subcontractors or freelancers?

Tools and equipment cover

For most tradespeople, tools are essential to their livelihood. Specialist tool insurance can cover theft, loss or damage, whether your tools are kept in a van, at home or on site.

Check whether your policy covers tools overnight in your vehicle, as this is a common exclusion. Some insurers require Thatcham-approved locks or that tools be removed overnight.

Vehicle insurance

If you use a van or car for work, you will need commercial vehicle insurance. A standard personal policy usually will not cover business use. Many insurers offer combined policies that include vehicle and tools cover, which can be more cost-effective.

Professional indemnity insurance

While more common in office-based professions, some tradespeople also take out professional indemnity insurance, for example if you offer design or consultancy services such as CAD drawings, plans or specifications.

This can cover claims if a customer says your advice or design caused them a financial loss.

For a full overview, see our professional indemnity insurance guide.

Business interruption insurance

This type of cover can help replace lost income if you are unable to work due to damage to your premises, theft of key equipment, or other insured events. It is most useful if you rely heavily on a single workshop, yard or storage facility and would struggle to trade from an alternative location.

General sole trader insurance

If you want a wider overview of how these types of cover fit together, see our sole trader insurance guide for a breakdown of what is required, recommended and optional.

Comparison table: common insurance types for tradespeople

Where to get a quote

You can get specialist tradesperson insurance from Qdos, with flexible cover options including public liability, employers’ liability and tools protection. Get a quick online quote in minutes. We’ve worked with Qdos for over 15 years here at ByteStart!

FAQ

Is public liability insurance a legal requirement?
No. It is not required by law, but many customers and contractors will insist on it before work starts. Some trade bodies and local authority frameworks also set minimum limits.

What level of public liability cover should I choose?
Common limits are £1 million, £2 million and £5 million. Domestic work often starts at £1 million. Commercial sites and local authority work may require £5 million or higher. Check tender documents and client contracts.

Do I need employers’ liability if I only use subcontractors?
If you use labour-only subcontractors who work under your control and use your tools, you usually need employers’ liability. Bona fide subcontractors who work independently should carry their own cover, but you should verify their policies.

Are my tools covered if they are left in the van overnight?
Often not, unless you have a policy that specifically includes overnight vehicle cover and meets security conditions. Check your wording for approved locks, alarms and garaging requirements.

Do I need professional indemnity insurance if I only install and do not design?
Usually no, but consider it if you provide drawings, specifications or advice that a client relies on. Some main contractors require PI from all subcontractors who sign off design or variations.

Will my personal car insurance cover me for work?
Not normally. You will need business use or a commercial vehicle policy if you carry tools, visit multiple sites or carry materials as part of your work.

Do I need extra cover for hot works or working at height?
Many policies have conditions for hot works and height limits. You may need specific endorsements, permits or risk controls. Check your schedule and method statements to ensure compliance.

What documents will a client typically ask for?
Proof of insurance with current dates and limits, your risk assessment and method statement, and sometimes your health and safety policy and training records. Keep these ready to speed up onboarding.

Further information