Like the name suggests, this insurance provides Public Liability cover for self-employed people who work away from home, such as plumbers, carpenters, painters & decorators, and can also cover most trades from after-dinner speaking to window cleaning. It can also be called Contractors Insurance.
Levels of cover start at £1 million and typically go up to £5 million. A higher level of cover of £10 million is available for some trades.
The cover can be extended to include Employers Liability, tools, stock, and personal accident cover if required.
When considering your cover, and whether you need Employer’s Liability cover, you must know the difference between labour-only subcontractors and bona-fide subcontractors, if you use them. In insurance terms, the definition is different from that that is required by Her Majesty’s Revenue and Customs (HMRC).
In very simple terms, a labour-only subcontractor takes direction from you. They use your tools and equipment and they do not provide any guarantees for the work they carry out. A bona-fide subcontractor works under their own supervision. They bring their own tools and they invoice you for the work they do. Understanding this is quite complex, and we are there to help and advise you on understanding and obtaining the correct cover for your needs.
For the larger contractors, a commercial package policy could be more suitable.
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