Tradespeople face a variety of risks as a result of their work. Having the right insurance policy can help to mitigate the impact of those risks, and in many cases, it’s a legal requirement. Read on to find out about the top six types of insurance claims of relevance to modern tradespeople:
1. Property Damage Claims
Even the most skilled tradespeople make occasional mistakes, and those mistakes can lead to substantial property damage. The specific damage risks tradespeople face vary based on the work they perform, but the liability insurance policies offered by T. S. Peck cover a wide range of circumstances.
As long as the damage to the property occurred as a result of the tradespeople’s work, he or she can be held liable. If an electrician installs wiring improperly and causes a fire or an arborist falls a tree that falls on the house, having insurance coverage is the only way for tradespeople to avoid substantial financial issues.
2. Workplace Accidents Claims
Tradespeople who employ staff have a duty to provide them with a safe, healthy workplace. Unfortunately, workplace accidents happen even when employees are provided with adequate safety gear and training, and if those employees file a compensation claim for their injuries, the employer can be held liable.
Any tradesperson who has one or more people on staff who provide services at clients’ homes or businesses should have employer’s liability insurance to cover workplace injury claims.
3. Stolen Tools or Equipment Claims
Every tradesperson uses specialized tools or equipment to complete jobs, and many of them are quite expensive. If someone steals those necessary tools, it can bring the tradesperson’s entire business grinding to a halt. Tool insurance is a helpful policy endorsement that can cover the theft of tools from a workshop, job site, or even a contractor’s van since all the policyholder has to do is file a claim to receive compensation, buy new equipment, and get back to work.
4. Contract Work Claims
Contract works insurance is designed to cover tradespeople working on projects that become damaged due to accidents or natural disasters. It covers a wide range of scenarios and ensures that the tradesperson can repair the damages or get paid what he or she is due for the work performed until they occurred. It’s equally common to see contract works claims filed as a result of flood damage as it is jobsite accidents like light fixtures falling during installation.
5. Client Compensation Claims
Tradesmen who offer advice, consulting, or design services should always carry professional indemnity insurance. If a client files a claim for financial losses resulting from the contractor’s error, a professional indemnity policy will cover legal expenses associated with the claim.
6. Hired Machinery Damage Claims
Many tradespeople rent large machines like forklifts, concrete mixers, and backhoes to complete projects. If the equipment is damaged or stolen, the person who rented it may be liable for replacing it. Filing a hired machinery insurance claim is a great way for tradespeople who fall prey to these problems to protect themselves.
Find the Right Insurance Policy
There are different types of insurance coverage for skilled tradespeople, so it can be hard to figure out what level of protection is really necessary. The best solution is to speak with a qualified insurance agent who can explain all of a client’s options and help him or her choose the one that offers the best coverage given the tradesperson’s line of work.
*Photo by Mikhail Nilov