In this edition of the Mango Blog, we offer a little wisdom on Tradespersons Insurance, with a few tips for finding the best Policy, and when to think about using an Insurance Broker.
A Little Background on Tradespersons Insurance
Tradespersons Insurance was originally set up as a cost effective way to sell insurance to Contractors by packaging lots of different covers that they require together.
Over the years, the range of packages available has expanded. Initially, most insurers only provided Public Liability and Employers’ Liability Insurance. However, these packages can now also cover Contractors’ Works, Tools Cover, Legal Expenses, and Personal Accidents. Traditionally, Tradespersons Insurance did not cover offices or premises, but some products have been adjusted to include this if necessary.
But is it right for you?
For Tradespeople this is a cost-effective way to get their liability insurance, however some problems can arise. One of the biggest problems is quite often trying to find a category to fit, especially if your business has multiple specialities or trades that you carry out. Picking from what you first encounter can lead to shoehorning your business into a category that does not quite fit it and could leave you exposed if the Insurer does not fully understand what you do and how you do it.
The Value of Better Cover
For us, as a broker, understanding a client's business can make all the difference, as we can confidently weed out the Insurers that will not cover your needs. For example, a Roofing Contractor using heat would not want a Policy that specifically excludes Heat Work.
There are also a number of trades that may need a more specialist and thorough cover. A great example of this is Cleaning Contractors where most standard Policies will exclude property being worked upon whereas if you are, for example, cleaning a kitchen and use the wrong cleaner causing damage to the tiles, you do not want to foot the bill. Cleaning Contractors might also need cover for failure to secure a premises following the clean or Loss of Keys.
Tools Cover
Tools cover is one of the covers that is also not always included and with theft of tools on the rise you cannot afford to get this wrong. Many Policies exclude cover for tools overnight unless they are in a locked building – simply put, your vehicle may need to be in a garage overnight for the tools cover to apply. Not all Policies carry this restriction, but it’s absolutely essential to know the cover you have. It's not uncommon for us to find that people are not sure if their Policy covers this, which is pretty alarming!
Our Advice
Therefore, our recommendation to everyone reading this is speak to an Insurance Broker to understand your needs, you are the expert in what you do, let us be the experts in what we do and get the right Policy for you. We will ask all of the necessary additional questions and make sure that you have all you need and not what you don't.
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