What insurance do I need to be a carpenter?
If you work as a carpenter, it’s important that your business is set up correctly. That includes making sure you have the correct insurance and are legally compliant.
Is it a legal requirement to have insurance as a carpenter?
In some circumstances it is a legal requirement to have insurance. In others, it is a contractual requirement. We’ll look at these situations below.
What insurance do I need as a carpenter?
There are various types of insurance you’ll want to consider. The main ones are:
- employers’ liability insurance
- public liability insurance
- professional indemnity insurance
- insurance for your tools
What is employers’ liability insurance, and do I need it?
Employers’ liability insurance protects you and your business if a current or former employee is found to have suffered an injury or illness while working for you.
It is a legal requirement to have employers’ liability insurance if you employ anyone, including part-time staff, trainees, apprentices, and even some sub-contractors. You can be fined for each day you don’t have it, when you should.
The minimum employers’ liability insurance cover required is £5 million.
If you are in any doubt about whether you need this kind of insurance, you should speak to a reliable insurer.
What is public liability insurance?
Public liability insurance is designed to protect you and your business in the event something your business does (or doesn’t) do causes harm to someone or damage to their property.
It may often be a contractual requirement to have this type of insurance, so you could potentially be in breach of contract if you don’t have it. Your trade association may also require that you have it as a condition of membership.
Public liability claims are relatively common; an order to pay costs for compensation and legal fees can amount to thousands of pounds.
How much cover is needed varies from business to business. It is usually between £2 million and £10 million.
What is professional indemnity insurance?
Professional indemnity insurance is designed to protect you if you offer professional advice as part of your work, and that advice turns out to be negligent, resulting in a financial loss for the client. The sort of advice this covers includes information about design, specifications, and materials.
The amount of cover you need will depend on your business. It is usual have cover start from £50,000 in professional indemnity cover.
Should I insure my tools?
Although it is not a legal requirement to have insurance for your tools, it is an important consideration. If your tools are stolen or damaged, the chances are it will be difficult for you to carry on working. Being insured means you could replace your tools quickly and get back to work.