If you have been a plumber or gas installer for some time, setting up your own business is the next logical step. However, making that transition from employee to owner comes with a variety of new challenges.
As the owner of a new business, you will be expected to be jack of all trades. And when we say ‘trades’, we’re not talking about gas and electricity! Running a business requires more than you being a skilled, experienced tradesperson. You will have to deal with administration and bookkeeping, follow up on enquiries, send quotes and deal with any issues or complaints.
You will also have to make sure that you, any staff you may have, and your customers are protected at all times. You may be eager to get your business off the ground but without the right tradesman insurance, you could run into serious problems.
There are two main types of insurance that we strongly recommend you take out. These are Employer’s Liability insurance and Public Liability insurance.
Employer’s Liability
Were you aware that in some cases, you are legally required to have insurance? For example, you must have Employer’s Liability if you employ someone and pay them on an hourly, weekly or monthly basis. This type of insurance protects you in case they are injured or become ill as a direct result of the work they carry out on your behalf.
In addition, if you do not have Employer’s Liability and have permanent staff, you can be heavily fined.
There are times when you don’t need Employer’s Liability insurance. For example, if you’re the person who carries out the work and you own more than 50% of the business’s share capital, you don’t need to have Employer’s Liability. This is also true if you and someone else is in an equal partnership and you don’t employ anyone else.
Public Liability
If a member of the public is injured or they believe you are to blame for any damage to their property, the resulting claim against you could be big enough to bankrupt you. Public Liability insurance protects you against such claims. If you have Public Liability insurance, you will be insured any claims against you, whether at a customer’s property or at your business premises.
You may be surprised to learn that you are not legally required to hold Public Liability insurance. However, if you are a plumber, gas installer or electrician, this sort of insurance is considered essential and should be one of your main priorities when first setting up your business. Accidents happen – do you really want to lose your business, home and life savings because you haven’t got the relevant tradesman insurance?
What other types of tradesman insurance should you consider?
Do you have premises? If so, you will need building insurance.
Do you own a van? We recommend that you don’t store anything overnight but van insurance is a must.
Will you be able to cover any legal costs if a customer was to make a claim against you regarding professional negligence, mistakes or poor advice? Professional indemnity insurance covers any legal costs and expenses in defending these sorts of claims.
What would happen if something was to happen to stop you from carrying on business as usual? Business interruption insurance (also known as business income insurance) covers any loss of income if a disaster was to lead to your business premises having to close or be rebuilt.
How much are your tools worth? How would you cope if they were to be stolen? Would you still be able to carry on working? Tools insurance covers hand tools, power tools and plant equipment – whether your own or hired – against loss, damage and theft.
We hope you found this article ‘Being your own boss in the gas industry – have you got the insurance you need?’ useful. Please note that we do not provide any type of tradesman insurance but like to offer visitors to our site as much added value and advice as possible.
Please call Gas Training & Assessment on us on 01268 727797 today if you have any queries about any technical aspect of your qualifications.
