What Does a Typical Trades Insurance Cover?

Start with the work you actually do

Trades insurance is a convenient description, not a standard promise that every risk is covered. A carpenter, electrician, painter or concreter may have different equipment, work locations and contractual responsibilities. Some covers may be packaged together; others may need separate policies or sections.

Describe your activities accurately, including work at height, design responsibilities, subcontracting and any changes in the type of jobs you accept. Contract and licensing requirements should be checked for your circumstances rather than inferred from a general description of trades cover.

Liability and professional responsibilities

Public and product liability can respond to covered legal liability for injury or property damage to others. It should not be assumed to pay for replacing defective work, product recalls or every contractual obligation. Limits and exclusions matter alongside any customer’s insurance requirements.

Professional indemnity may be relevant where you provide advice, design or other professional services. Whether it is appropriate depends on what you do and the policy wording. Discuss claims-made notification requirements if this cover forms part of your arrangements.

Tools, vehicles and work in progress

Tools and equipment cover may have different conditions for theft from a vehicle, storage overnight or equipment left at a site. Check security requirements, item limits and the basis of settlement. Keep values and records current, including for newly purchased equipment.

Commercial motor should reflect the vehicles, drivers, loads and use involved. Tools carried in a vehicle are not automatically covered by its motor policy. Contract works may need separate consideration for materials, projects and work in progress, including who is responsible under the contract.

Check how the pieces fit

Subcontractor conditions vary, and your policy is not automatically a policy for every subcontractor. Review declared activities, required records, excesses and relevant exclusions. Consider how a loss could affect ongoing jobs, equipment replacement and cash flow.

Bring a sample contract, equipment list and description of your work to CPC. We can discuss the sections and questions relevant to your business. This is general information; available cover and claims responses depend on insurer acceptance and the agreed wording, conditions and limits.