What insurance does a carpenter need?
If you work as a carpenter, either on a self-employed basis or within a small, limited company or partnership, you may need to think about insurance.
What insurance do I need?
There are various types of insurance you may need to consider, including:
- public liability insurance
- employers’ liability insurance
- professional indemnity insurance
- insurance for your tools
What is public liability insurance, and do I need it?
This kind of insurance is an important consideration if you come into contact with the public, their property or that of your clients.
Public liability insurance is designed to protect you and your business in the event something you do causes a client or member of the public harm or illness, or damages their property. For example, someone who trips over tools left on site, or damage to a car parked near a site.
Incidents like these can be minor, but damages often amount to thousands of pounds.
What is employers’ liability, and do I need it?
You are legally required to have employers’ liability if you employ anyone. This includes trainees and apprentices.
Employers’ liability protects you should a current or former employee suffer injury or illness as a result of working for you.
You can be fined for every day you don’t have employers’ liability insurance when it should be in place.
What is professional indemnity insurance, and do I need it?
Professional indemnity relates to any professional advice you give. You could need it if you give advice about specifications or aspects of design, for example dimensions of beams or methods of installation.
This insurance will cover you if the advice you provide turns out to be wrong or negligent, resulting in a financial loss for the client.
Do I really need to insure my tools?
If your tools are stolen, you won’t be able to work until you have bought replacements, which can be costly.
With insurance cover you will be able to replace your tools quickly, allowing you to get back to work.
Does it matter whether I am a sole trader, limited company, or partnership?
Regardless of how your business is structured you may need to consider which insurance covers you need. However, the cost of your premium will be affected by how your business is set up and how many employees you have.
If you’re a small one-person outfit, your insurance will be less than for a company with six employees.
Other factors that may affect the cost of your insurance include the types of projects you work on and where you work. If you take on large projects in a city, your insurance may cost more than if you mostly work on small domestic projects in the countryside.