What insurance do I need?

Discussion in 'Carpenters' Talk' started by fobos, Sep 19, 2016.

  1. fobos

    fobos Member

    Hi guys

    I'm about to go self-employed within the next few days. I've got my first job sorted which is a £45k loft conversion. I'll do most of the work myself but will sub-contract some of it to other chippies and labourers to push it along.

    I'm a bit confused about what sort of insurance I need to take out. I have listened to what the insurance companies are trying to sell me but I'd prefer to hear what guys in the trade have.

    Any advise gratefully received.

    Cheers, Andrew
  2. chippie244

    chippie244 Super Member

    Public liability insurance for a start.
  3. sospan

    sospan Screwfix Select

    I would also get professional indemnity just incase your client sues you. You will need employers liability insurance for taking on sub contractors or anyone you are paying.

    And of course you will need specific insurance for your tools and vehicles.

    I would also take out personal injury insurance just in case you have an accident and can't work

    With all these I would go to at least one IFA for quotes, don't be tempted to buy "off the shelf" because they are cheap .....
  4. fobos

    fobos Member

    are there any carpenters out there who have professional indemnity insurance?
  5. sospan

    sospan Screwfix Select

  6. Astramax

    Astramax Super Member

    At least £5 million cover could be advised £10 million though :eek:
  7. Mr Rusty

    Mr Rusty Screwfix Select

    maybe for public liability, but not for PI. We work for tier 1 construction companies with £2M PI on £0.3M contracts installing MEP services. Yes, they are trying to push for £5M but we are pushing back. Fed up of continually increasing on-costs.
  8. chippie244

    chippie244 Super Member

    I go through Trade Direct and you get PLI, prof indemnity, tool insurance and a few other things thrown in. I think I pay £150 for £5M PLI.
  9. fobos

    fobos Member

    Many thanks for the replies.

    I think most insurance companies who offer "tradesman insurance" packages offer public liability but not professional indemnity as standard.

    From my understanding public liability not only covers you for e.g. dropping a hammer off the scaffold onto a passers by, but also covers you if you accidentally damage your customers home.

    What is professional indemnity for? I mean what does it cover you for?

    Cheers, Andrew
  10. Mr Rusty

    Mr Rusty Screwfix Select

    In essence, design, covers you if you design something that subsequently falls down or injures someone because the spec was wrong.
  11. fobos

    fobos Member

    Most of the work I've done and will be doing will be loft conversions, re-roofs and extensions.

    I just follow the spec/design of the architect. Does that mean I don't need Professional Indemnity as I won't be designing anything?

    Cheers, Andrew
  12. Mr Rusty

    Mr Rusty Screwfix Select

    Honestly not sure - I only have a largish contractor perspective - see what other smaller traders think, but I would have thought it would be worth getting a bit of cover if it's not expensive.
  13. chippie244

    chippie244 Super Member

    Just found my insurance policy and I get 5M PLI, £50K PI, £100K financial loss and £1K theft of tools for about £150 per year.
    GoodwithWood likes this.
  14. sospan

    sospan Screwfix Select

    May want to do a bit of totting up in the garage .... could be surprised how much you have got lying around
  15. chippie244

    chippie244 Super Member

    It's just an added extra, I've claimed on it twice.
  16. philthespark

    philthespark Active Member

    one important point,just make sure you are qualified to carry out the work you are doing,I'm not saying you aren't but a lot of people do things they are not qualified to do and think their insurance will look after them if it goes wrong,they won't!
    I know a guy who has set up as a general builder,he's no formal training and just picks things up as he goes along,he thinks he'll be fine but I've seen some of his work and it's not the best to be honest.He was trying to tap me up a while back for info on how to do electrical work but I wasn't having it.Insurance is all the same whether it's house,car or PLI,a decent size claim comes along and they'll look for any excuse to avoid paying out.
    FatHands likes this.
  17. sospan

    sospan Screwfix Select

    It is like the hidden question on house insurance - "are you doing any building or renovation work" The question is there for a reason, just to avoid a claim and potentially for future incidents that you haven't forewarned the insurance company.
  18. fobos

    fobos Member

    okay then.....

    who has actually claimed on their Professional Indemnity Insurance? and what was it for?

    Have you claimed on yours chippie24?

    Cheers, Andrew
  19. sospan

    sospan Screwfix Select

    Never, but you never know when you will need it - like car insurance, you may be a fantastic driver but even the best drivers have accidents
  20. chippie244

    chippie244 Super Member

    No I haven't, nor have I claimed on the PLI or the financial loss because I haven't made a mistake. I have claimed on the tool insurance twice.
    I was only after the PLI which I need to work as a freelance, the rest was thrown in for free.

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