In recent years the cost of monthly premiums for tradesman insurance has increased. This is mainly due to the rise of professional indemnity insurance following many significant events across the country that saw the collapse of high-rise buildings and fire in public facilities.

Having the correct insurance protection in place is essential for tradesmen that want to guard against costly claims. NimbleFins’ tradesman insurance comparison can be used to compare quotes from different providers and check for the best deals.

Working as a tradesman means that different types of coverage will be needed to guard against claims and protect personal finances and assets. Types of insurance that may be required will depend on the kind of work being performed and the structure of the business.

Tradesmen that hire employees and use business vehicles will need different coverage from those that work alone and do not use cars or trucks for business purposes. The types of insurance that may be included in a tradesman’s policy are:


  • Employers’ liability
  • Public liability
  • Personal accident
  • Tools and equipment
  • Business vehicle
  • Contract works 
  • Professional indemnity


An increase in the demand for personal indemnity cover and the increase in claims has seen a number of insurers withdraw from the market. This has left tradesmen with limited options and stricter requirements when it comes to seeking cover.

How much is tradesman insurance UK?

The cost of tradesman insurance fluctuates depending on the business structure, the type of work that is undertaken and factors like the number of company employees or heightened risks associated with specialised services. Prices can increase based upon years in business, experience levels, past claims history and convictions, all of which can alter the cost of premiums.

Companies that have employees are legally required to hold Employers Liability insurance to protect against claims made by workers. Not having it comes with stiff penalties, fines of up to £2500 per day may be imposed if the insurance is not obtained.

While it is not mandatory public liability insurance is a must-have for tradesmen. Work performed carries with it a high risk of accidents and incidents, and personal finances may be on the line without public liability coverage.

Polices are available in a range of different amounts and can rise as high as £10 million or more to protect large businesses. Many standard policies will be in the region of £2 million which is sufficient for most tradesmen.

According to NimbleFins, the cost of tradesman insurance starts from as little as £53 a year but depends on the exact occupation, the size of the business, the types and amounts of cover needed, and other factors. For example, the average cost of a sole trader public liability insurance premium for a cleaner is £53, while a builder can pay around £104 per year.

Employers’ liability insurance is not quite as flexible when it comes to coverage options. The law states that this insurance must provide minimum coverage of £5 million, but most insurers offer policies for £10 million. It is important to note that this type of insurance will be required whether employees are full-time, part-time, seasonal, temporary or paid in cash.

Annual premium costs are affected by the number of employees working for the business. The higher the numbers, the more risk there is that the company could be subject to a claim, and premiums rise accordingly. Companies with one employee can expect to pay from £70 to over £200 on an annual employers’ liability insurance policy, depending on the work they do. For a typical business that employs 5 people, the price more than triples to very roughly £750 per year.

Personal accident insurance may be purchased by tradesmen to cover loss of earnings in the event of a work-related accident, but it can also be provided for employees. While premiums will increase based on the number of people insured, the price per person reduces as more employees are added to the policy. Personal accident insurance for an individual tradesman can cost around £80, but the price per person for 10 employees ranges from £450 – £650, lowering the cost to £45 – £65 per person.

Tradesmen that use tools to perform work may want to guard them against theft or vandalism by insuring against loss or damage. The level of coverage can be selected to provide appropriate protection and cover the cost of replacement. Sole traders may find a policy that provides £1000 of coverage sufficient for their needs, while large companies may need much larger amounts to protect them from the cost of replacing expensive equipment or specialised tools.

Tools covered by this type of insurance can include handheld tools, power tools, plant and safety equipment and will even cover things like laptops or mobile phones needed for business against loss, theft or accidental damages.

There are some limitations to the cover provided. Tools that are stolen from an unlocked vehicle or garage will not be protected under the policy. The tools will also not be insured if there are missing but there is no evidence of a break in.