In the UK, it is common for clients, particularly those in the construction and property sectors, to require tradespeople to hold specific types of insurance as a condition for awarding contracts. This requirement for contract works is especially prevalent in larger projects where the risks are higher and the potential liabilities more significant.
Clients often insist on public liability insurance, as it protects against claims of injury or property damage caused by the tradesperson’s work. This form of business insurance assures the client that any accidents or damage that occur on the job site will not lead to financial loss or legal complications for them.
Similarly, employers liability is mandatory for tradespeople who employ staff and is often required by clients to ensure that any workplace injuries sustained by employees is covered. This protects the client from potentially being held responsible for incidents involving the tradespeople’s team.
Clients may require professional indemnity insurance if the tradesperson provides design, advice, or consultancy services as part of the contract. This insurance covers claims relating to professional negligence or errors in the work. Holding the necessary insurance not only meets client demands but also enhances the tradesperson’s credibility and competitiveness in securing contracts, especially with more prominent or risk-averse clients.