BEING an independent tradesman is a rewarding job, but it also comes with its own set of risks. Depending on the type of trade you practice, you may find yourself needing a wide variety of insurance policies to protect yourself and your business.
After all, you never know if something may go terribly wrong or that someone may not be satisfied with your services and decides to file charges against you. With that in mind, here are some types of insurance that every independent tradesman should consider getting.
An overview of professional indemnity insurance
Professional indemnity insurance is a type of liability insurance that provides financial protection for professionals who provide advice or services to their clients. It covers the cost of defending claims made against them, as well as any damages awarded in the event of a successful claim.
Professional indemnity insurance is designed to protect professionals from claims arising out of errors, omissions, negligence or breach of duty in the course of their professional activities.
How to choose the right public liability insurance
Choosing the right public liability insurance is something that needs to be carefully considered. First and foremost, the type of insurance you need will depend on the nature of your business as insurance policies can be tailored to your specific needs.
For example, if you’re in the glazing business, you’ll need public liability insurance for glaziers as this type of insurance is designed for this type of trade. The key to getting a proper insurance policy is to browse various insurance companies and compare their offers. This will help you get the best coverage for the best price. Therefore, don’t forget to do a bit of research before you make your final decision.
Understanding business interruption insurance for tradespeople
Business interruption insurance is an important form of coverage for tradespeople, as it can help protect them from financial losses due to unexpected events. This type of insurance covers the income that a business would have earned if not for the interruption caused by a covered event. It also covers any additional expenses incurred during the period of interruption, such as rent or mortgage payments and other fixed costs.
To be eligible for business interruption insurance, tradespeople must demonstrate that they have suffered a direct physical loss or damage to their property due to an insured event. The policy will then provide coverage for lost profits and continuing expenses up to the limits specified in the policy. However, this type of insurance does not cover losses due to economic downturns or changes in market conditions like increasing inflation, for instance.
As a matter of fact, it only covers losses resulting from physical damage caused by an insured event. Moreover, some policies may require businesses to take certain steps before filing a claim, such as providing proof of loss and submitting detailed records of income and expenses prior to the incident.
Independent tradesmen should always consider investing in insurance which covers the tools, equipment and materials they use. They should also look into public liability insurance and professional indemnity insurance to protect themselves from any claims of negligence or malpractice made against them.
