Q: Do I need carpenter’s insurance?

There are certain circumstances in which you are required by law to have insurance, and others where it is only important to consider if you need it.

Q: When am I legally required to have insurance?

You must have employers’ liability insurance if you employ anyone. This applies whether you have full-time staff, apprentices, or trainees, or even some sub-contractors. Check with your insurance company about your eligibility. You can be fined £2,500 per day if you are not correctly insured when you should be.

Q: What other insurance do I need?

You might want to consider public liability insurance . This is designed to protect your business if you cause damage to someone’s property or do something that causes them injury or harm. Claims for damages after an accident or mistake can amount to many thousands of pounds and include legal fees. You need insurance to cover those costs. If you can’t pay, your business and assets may be at risk. Some larger clients may insist you have public liability insurance as part of your contract. They will not work with you if you don’t have it. You may also find your professional body or trade association also insists you have this insurance as part of your membership. Having insurance helps reassure clients that you are a reliable professional. Not having it can result in damage to your reputation. You may also need professional indemnity insurance . This protects you if you give professional advice which turns out to be negligent and causes financial loss or harm.

Question 1

Do I need carpenter’s insurance?

Accepted Answer

There are certain circumstances in which you are required by law to have insurance, and others where it is only important to consider if you need it.

Question 2

When am I legally required to have insurance?

Accepted Answer

You must have employers’ liability insurance if you employ anyone. This applies whether you have full-time staff, apprentices, or trainees, or even some sub-contractors.

Check with your insurance company about your eligibility. You can be fined £2,500 per day if you are not correctly insured when you should be.

Question 3

Does it make a difference if I am self-employed?

Accepted Answer

It doesn’t matter if you’re self-employed, run a limited company, or are part of a partnership; the requirements for insurance are the same. However, the cost of your insurance premium may be less if you are self-employed.

Question 4

Do I need insurance if I only take on small projects?

Accepted Answer

It doesn’t matter what size projects you work on; accidents can still happen. If you only work on small, domestic projects, it may mean your insurance premium is less than that of a carpenter who works on large, complex jobs.

Question 5

What other insurance do I need?

Accepted Answer

You might want to consider public liability insurance. This is designed to protect your business if you cause damage to someone’s property or do something that causes them injury or harm.

Claims for damages after an accident or mistake can amount to many thousands of pounds and include legal fees. You need insurance to cover those costs. If you can’t pay, your business and assets may be at risk.

Some larger clients may insist you have public liability insurance as part of your contract. They will not work with you if you don’t have it.

You may also find your professional body or trade association also insists you have this insurance as part of your membership. Having insurance helps reassure clients that you are a reliable professional. Not having it can result in damage to your reputation.

You may also need professional indemnity insurance. This protects you if you give professional advice which turns out to be negligent and causes financial loss or harm.

Question 6

Do I need separate insurance for my tools?

Accepted Answer

You should always consider if you need to insure your tools. If they are lost or stolen, you will be able to replace them quickly and return to work.

Why do you need specific carpenter insurance?