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Part of Tradesman insurance: what cover do UK builders and plumbers really need?
Tradesman insurance: what cover do UK builders and plumbers really need?
Public liability, employers' liability, tools and van cover: what UK builders, plumbers and electricians really need, and which contracts demand it.
What to take away
- Public liability comes first for most trades, because clients and principal contractors write a required limit into the contract before work starts.
- Employers' liability is a legal duty from your first employee, and GOV.UK puts the minimum at £5 million.
- Tools, plant and van contents need separate cover, because a motor policy insures the vehicle rather than what is inside it.
- Gas Safe registration or a competent person scheme proves competence, not insurance, and clients usually ask for both.
Public liability is the cover clients ask for first
Public liability insurance responds when someone outside your business is injured or their property is damaged by your work.
For a plumber that could be a flooded kitchen after a joint fails. For a builder it might be a tile falling from a roof onto a parked car.
The limit is normally set by the contract, not by law. Principal contractors want a certificate of insurance before they issue a site pass. If your limit falls short, you can lose the job or pay the difference yourself.
Employers' liability begins with your first hire
Take on anyone as an employee, including a part-time labourer or an apprentice, and you normally need employers' liability cover.
The duty comes from the Employers' Liability (Compulsory Insurance) Act 1969, which applies in England, Wales and Scotland, and it covers work-related illness as well as injury.
GOV.UK guidance on employers' liability insurance puts the statutory minimum at £5 million.
Sole traders with no staff sit outside the duty. HSE guidance on employers' liability explains who counts as an employee and what the certificate must show.
Subcontractors should carry their own cover. Ask for their certificate before they start, because a labour-only subcontractor can be treated as an employee for insurance purposes.
What each trade usually needs
Cover follows the risk in the work, not the job title painted on the van. Treat the table as a prompt for a broker conversation rather than a quotation.
Cover by trade
Builder
- Core cover
- Public liability
- Worth adding
- Contract works, plant
- Check trigger
- Contracts above limit
Plumber
- Core cover
- Public liability, tools
- Worth adding
- Employers' liability
- Check trigger
- Work in occupied homes
Electrician
- Core cover
- Public liability, indemnity
- Worth adding
- Employers' liability, tools
- Check trigger
- Signing certificates
| Trade | Core cover | Worth adding | What triggers a check |
|---|---|---|---|
| Builder | Public liability | Contract works, plant, hired-in equipment | Contracts above your limit, subcontractors on site |
| Plumber | Public liability, tool cover | Employers' liability from the first apprentice | Work in occupied homes, commercial contracts |
| Electrician | Public liability, professional indemnity | Employers' liability, tools in transit | Signing installation certificates or EICRs |
| Gas engineer | Public liability, employers' liability | Professional indemnity, tools | Client asks for Gas Safe evidence |
| Groundworker | Public liability | Own plant, hired-in plant, contract works | Underground services, damage to nearby property |
Two covers do most of the work. Public liability answers claims from other people, and employers' liability answers claims from your own. Everything else follows the kit you own and the certificates you sign.
Tools, plant and the van
A standard van policy covers the vehicle, not the contents. Tools taken from a locked van overnight are not covered by the motor policy.
Tool insurance for tradesmen is usually added to a van or public liability policy, with a limit per item and a limit per claim.
Conditions matter as much as the limit. Check whether cover applies inside a customer's home, overnight and away from the vehicle, and whether theft needs signs of forced entry.
Limits, evidence and comparing quotes
Ask what limit the contract requires and buy that, not the cheapest quote. Two policies with an identical illustrative £1 million limit can cover different things.
Ask about exclusions before limits. An illustrative £2 million limit that excludes work at height is worth less than an illustrative £1 million limit that covers it.
Brokers can usually issue a certificate the same day. Ask when you price the job, not when you win it.
When you compare public liability insurance costs across quotes, match the trade classification, turnover and number of employees on each one, so the comparison is fair.
Keep the certificate of insurance and your registration evidence in one folder you can send the same day. Check the policy period covers the whole contract.
This is general guidance only, and your own contracts and trade need a qualified insurance adviser.
Common questions
Do I need public liability insurance by law?
Not for most trades. It is a contract requirement rather than a statutory one, and the contract usually sets the limit you must hold.
How is employers' liability different from public liability?
Employers' liability covers injury or illness to your employees. Public liability covers injury to everyone else and damage to their property. The statutory minimum for employers' liability is £5 million, as set out on GOV.UK.
Does Gas Safe or NICEIC registration include insurance?
No. Registration is about competence and notification. Clients will still ask for a certificate of insurance, and the scheme rules may set their own expectations, so check the current scheme documents.
What happens if I work without cover?
You carry the loss yourself. A serious injury claim or a flooded property can far exceed a small firm's cash reserves, and the contract may also let the client withhold payment.
