What Insurance Do Tradesmen Need in the UK? (2026 Guide)
A plain-English guide to every type of insurance UK tradesmen need - what's legally required, what's recommended, typical costs, and where to get the best deals.
VioTrade Team
The short answer
If you're a sole trader with no employees, you legally need van insurance (if you drive for work) and that's it. Everything else is technically optional.
But "technically optional" and "sensible to have" are very different things. Try getting on a commercial site without public liability insurance. Try replacing a customer's flooded kitchen ceiling out of your own pocket. Try paying your mortgage when a back injury puts you off work for three months.
Here's what each type of insurance actually covers, what it costs, and whether you need it. If you're just getting started, you might also want to read our guide on how to write a plumbing quote to make sure you're pricing jobs properly too.
Public liability insurance
What it covers: Claims from members of the public or customers if your work causes injury or property damage. A pipe fitting that fails and floods the flat below. A customer tripping over your tools. A radiator that falls off the wall after you installed it.
Is it legally required? No. But it's effectively mandatory. Most commercial sites, main contractors, housing associations, and letting agents won't let you through the door without it. Checkatrade and other trade directories require it for membership. Many domestic customers ask to see it too.
Typical cover levels:
- £1 million - fine for domestic work as a sole trader
- £2 million - what most tradespeople carry, covers most domestic and light commercial work
- £5 million - needed for larger commercial contracts, council work, and some main contractors
- £10 million - major construction sites and infrastructure projects
Typical cost:
| Cover Level | Sole Trader | Small Team (2-3) |
|---|---|---|
| £1 million | £80 - £150/year | £120 - £250/year |
| £2 million | £100 - £200/year | £150 - £350/year |
| £5 million | £150 - £400/year | £250 - £600/year |
Costs depend on your trade (roofers and gas engineers pay more than painters), your turnover, and your claims history.
Bottom line: Get it. £100-200 a year is nothing compared to one claim. A single water damage claim can easily run into tens of thousands. If you're a plumber, see how VioTrade helps you manage your plumbing business from quoting to getting paid.
Employers' liability insurance
What it covers: Claims from your employees if they're injured or become ill because of their work. An apprentice who falls off a ladder. A labourer who develops a dust-related illness.
Is it legally required? Yes - the moment you employ anyone. This includes:
- Full-time and part-time staff
- Apprentices
- Casual labourers ("my mate Dave helping out for the day")
- Labour-only subcontractors that HMRC considers employees
The minimum cover is £5 million, though most policies offer £10 million as standard. The fine for not having it is £2,500 per day you're uninsured, plus a criminal record.
Do sole traders need it? No - if you genuinely work alone with no employees at all. But be careful. If you ever get someone in to help, even casually, you need cover from day one. Some sole traders take out a policy anyway because the line between "subcontractor" and "employee" isn't always clear, and HMRC's definition might differ from yours.
There's one exemption: If all your employees are close family members (spouse, civil partner, parents, children), you're exempt. But this is narrow - it doesn't cover in-laws, cousins, or friends.
Typical cost: £70 - £250/year, depending on number of employees, trade type, and risk level.
Professional indemnity insurance
What it covers: Claims that arise from professional advice, design, or specification you've provided. An electrician who designs a circuit that doesn't meet regulations. A heating engineer who specifies the wrong boiler size. A plumber who signs off a bathroom design that causes ongoing problems.
Is it legally required? Not by statute, but some professional bodies and certifications require it:
- NICEIC registered electricians are expected to hold it
- Gas Safe engineers doing design work should have it
- Members of the Chartered Institute of Plumbing and Heating Engineering (CIPHE) are encouraged to carry it
If you just fit what the customer or architect specifies, your exposure is lower. If you design, specify, or advise, you need it.
Typical cost: £100 - £300/year for a sole trader. More if you do a lot of design work or handle larger projects.
Tools and equipment insurance
What it covers: Theft, loss, or accidental damage to your tools - whether they're in your van, on site, or at home.
Is it legally required? No. But a full kit of plumbing or electrical tools can easily cost £3,000-£10,000 to replace. Van break-ins are common, especially overnight. Most standard van insurance policies don't cover tools left in the vehicle, or have very low limits (often £200-£500).
Typical cost: £50 - £200/year for cover up to £5,000-£15,000 worth of tools.
Worth knowing: Some policies require tools to be stored in a locked toolbox or vault within the van overnight. Read the conditions - if you don't comply, they won't pay out.
Van insurance
What it covers: Damage to your vehicle, third-party injury/property damage, theft of the van.
Is it legally required? Yes - it's illegal to drive any vehicle on UK roads without at least third-party insurance. And your personal car insurance almost certainly does NOT cover using the vehicle for business purposes. If you carry tools or materials in your vehicle for work, you need commercial van insurance.
Types:
- Third party only - cheapest, covers damage you cause to others but not your own van
- Third party, fire and theft - adds fire and theft cover for your van
- Comprehensive - covers everything including damage to your own van
Typical cost: £500 - £2,000+/year depending on your age, driving history, van type, and where you live. Younger tradespeople and those in urban areas pay more.
Make sure you tell your insurer the van is for business use. If you claim on a personal policy while using the van for work, they'll reject it.
Personal accident and income protection
What it covers: Pays out if you can't work due to an accident or illness. Some policies pay a lump sum, others pay a weekly/monthly income.
Is it legally required? No. But if you're a sole trader, there's no employer sick pay. Statutory Sick Pay doesn't apply to the self-employed. If you fall off a ladder and can't work for two months, your income drops to zero while your bills stay the same.
Typical cost: £50 - £200/year for basic cover. More comprehensive income protection policies cost more but pay out monthly until you can return to work.
This is the insurance most tradespeople skip and most regret skipping. A serious injury that keeps you off your feet for six months can wipe out years of savings.
Legal expenses insurance
What it covers: Legal costs for disputes - contract disagreements with customers, employment tribunals, tax investigations by HMRC, debt recovery.
Is it legally required? No. But hiring a solicitor starts at around £200-£300 per hour. A single contract dispute or HMRC investigation can easily run into thousands in legal fees.
Typical cost: £50 - £100/year, and it's often included as an add-on with public liability or combined policies.
Contract works insurance (all risks)
What it covers: Materials and work in progress on site against damage from fire, flood, vandalism, theft, or accidental damage. If a storm damages an extension you're halfway through building, this covers the cost of materials and redoing the work.
Is it legally required? No. But on larger projects, the main contractor or client may require you to hold it. Worth considering if you regularly work on projects worth £10,000+.
Typical cost: Varies with project value. Often arranged per project rather than annually.
What most sole traders actually need
If you're a sole trader doing domestic work, here's a practical starting point:
| Insurance | Priority | Typical Cost |
|---|---|---|
| Public Liability (£2m) | Must have | £100 - £200/year |
| Van Insurance (comprehensive) | Legally required | £500 - £1,500/year |
| Tools Insurance | Strongly recommended | £50 - £150/year |
| Personal Accident | Recommended | £50 - £150/year |
| Legal Expenses | Nice to have | £50 - £100/year |
| Total | £750 - £2,100/year |
Add employers' liability if you hire anyone. Add professional indemnity if you do design or specification work.
Combined tradesman policies
Most insurance providers offer combined policies that bundle public liability, tools cover, personal accident, and legal expenses into one package. These are usually cheaper than buying each policy separately and simpler to manage.
Providers worth comparing:
- Simply Business - online broker, compares multiple insurers, popular with sole traders
- Hiscox - strong on public liability and professional indemnity
- Tradesman Saver - specialist trade policies, competitive pricing
- PolicyBee - good for professional indemnity
- Howden (formerly A-Plan) - broker with local offices if you prefer face-to-face
Get at least three quotes. Prices for the same cover can vary by 50% or more between providers.
Mistakes to avoid
1. Assuming your home insurance covers your tools It might cover a small amount, but business tools used for commercial purposes are typically excluded or have low limits. Check your policy wording.
2. Not reading the exclusions Every policy has exclusions. Common ones: tools left in an unlocked van, work at heights above a certain level, asbestos-related claims, work on listed buildings. Know what's excluded before you need to claim.
3. Underinsuring to save money Dropping from £2m to £1m public liability saves you maybe £50 a year. One serious claim and that £50 saving looks very foolish. Insure for realistic worst-case scenarios, not best-case ones.
4. Forgetting to update your policy Hired an apprentice? Your employers' liability needs to reflect that. Bought a new van? Update your motor policy. Turnover gone up? Your public liability limits might need increasing. Review annually at minimum.
5. Not keeping your certificate accessible You'll be asked for proof of insurance regularly - by clients, main contractors, trade directories, and letting agents. Keep a digital copy on your phone. VioTrade lets you store all your trade documents (Gas Safe card, insurance certificates, qualifications) in one place so you can pull them up on site.
How VioTrade helps
VioTrade doesn't sell insurance - but we help you run the business that insurance protects. Manage your quotes, invoices, job scheduling, and customer records from your phone. The less admin you're doing in the evenings, the more time you have to actually grow your trade business.
Try VioTrade free for 7 days - no credit card required.