Are you covered?

Are you fully insured if something goes wrong? We look at the different policies available and outline what you need to consider before buying insurance.

Public liability

Public liability insurance isn’t a legal requirement but it may cover any legal costs and compensation claims if a customer believes you have damaged their property. Compensation costs can mount up – consider how extensive the water damage could be if a radiator fitting you install fails, or if you drop something and it damages the floor or wall.

The limit of public liability cover can be set anywhere from £1 million to £10+ million, and may be a requirement if you work for commercial or public-sector clients.

Employers’ liability

Employers’ liability insurance is a legal requirement for any gas engineer who employs another person. It will pay compensation if your employee is injured or becomes ill as a direct result of the work you ask them to do. By law you must have at least £5 million of cover, and significant fines can be imposed if you are not properly insured.

You may not need this insurance if the person you are employing is a family member, but if you do have it, the insurer must be authorised by the Financial Conduct Authority.

Professional indemnity

Professional indemnity insurance provides cover if a mistake you make causes your customer financial loss or reputational damage. It’s is not the same as public liability insurance, which can cover practical mistakes such as leaks or damage, but covers the potential consequences of any misleading advice or statements you might make. If your business includes any kind of consultancy work, this may be worth considering – but it is not a legal requirement.

Income protection

When you’re self-employed, you don’t get sickness benefits if you fall ill and are unable to work. Income protection insurance can provide a tax-free monthly amount to help cover your bills if you are signed off or unable to work.

Cover varies, depending on the plan, but some will maintain your average income, while others will pay your mortgage or essential bills and living expenses. Always check the small print before you purchase – some will cover you from the first day you are unable to work, while others require you to be off work for a certain amount of time before you can make a claim.

Contract works

Contract works insurance tends to be considered by bigger companies carrying out more extensive property renovations. It protects against any losses incurred if a structure you’re working on is damaged before the job is completed, such as through fire or building collapse.

This includes covering any materials or labour already used on the project, protecting you and your customer from being out of pocket. It is usually an add-on to other insurance policies, rather than being a policy on its own.

Legal expenses

Legal expenses insurance covers costs incurred during disputes such as unpaid bills, personal injury or unfulfilled contracts. This can be standalone but many insurance policies offer cover as standard or an optional extra. Before you buy, check that you don’t already have it as part of another policy. The terms of the cover can vary between insurers, so make sure you know exactly what you are covered for.

Vehicle protection

Any vehicle you own must be insured by law but personal vehicle insurance is different from insuring a business vehicle. If you own a van or use your personal car for business, make sure you’re specifically covered for business use. Otherwise, if there is an accident while you’re transporting tools or goods in your vehicle, you might not be covered.

Make sure that your business use insurance also covers contents such as tools in case they are damaged or stolen – or buy separate tools insurance.

If you have a young employee or apprentice, check with your insurer that they are covered before you let them drive the van. Some companies will not allow additional drivers below the age of 25, or charge you a premium for doing so. n