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Being a self-employed carpenter – Why do I need an insurance policy?
Being self-employed surely comes with plenty of benefits. Nevertheless, you have more responsibilities than if you had if you were to work for a business establishment.
This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
People in the creative fields tend to appreciate more being self-employed than others do. This is why carpenters choose to either create their own companies, either become self-employed. This provides them with the liberty of choosing only the projects in which they are interested, being also a career with a high potential in terms of lucrative returns. However, certain neglected aspects might represent huge drawbacks, even for the most skilled craftsman. Small details like neglecting to invest in a carpenters policy might put your business into great danger. The reasons why each carpenter needs an insurance policy tailored to their specific needs are listed below.
1. Carpenter’s and joiner’s insurance policy: Generalities
Luckily, if you don’t forget this small, yet crucial aspect, the market is filled with options that will meet your necessities. Certain insurance companies dedicate their time and resources to tailoring insurance policies that apply to the specific needs of all enterprises, in all activity fields. One of those companies is Tradesman Saver, if you activate in the United Kingdom. If you activate in other areas of the globe, for instance the USA, you can also find dedicated agencies. Many reputable insurance companies develop their insurance policies with the help of professionals in the field, which leads to creating a comprehensive product, highly beneficial for business establishments activating in the field. Nevertheless, only by finding a reliable provider of this kind, you will benefit from the best policy insurance products possible. Some clues that will signal a reliable insurance company are, as it follows:
• The company’s popularity and portfolio – if big names are collaborating with the establishment, this is the first sign that you can trust their products.
• The variety of products – reliable insurance companies put great efforts into answering the questions of as many individuals and establishments as possible.
• The company’s presence on the market – quite obvious, only reliable companies that took their services to perfection are able to survive in a highly competitive environment. Search for companies with more than 30 years of experience in the field.
If an insurance company meets all the requirements above, then you can start to inspect their products.
2. How many types of insurance policies are out there?
The offer when it comes to insurance policies is a generous one. However, you must know that regardless of the fact that you are self-employed or you have employees, you need liability coverage. Those who neglect such matters can be fined £1,000, as the Government’s official webpage states. Many companies, like Tradesman Saver, tailor their packages so they meet an extensive demand. As a self-employed carpenter, you most probably need the following types of insurance:
• Self-employed public liability insurance – is rather a good practice as a self-employed individual in the UK than an obligation. Such insurance products will offer you protection against any kind of damage that you may cause to a third party.
• Financial loss insurance policy – offers liability in case of a variety of accidents, which obviously happen inside a business. It offers protection from claims of clients or other parties.
• Products liability insurance policy – will offer you coverage if a product or service which you deliver causes damage or injuries to third parties. It is important to invest in such insurance products, because no matter how skilful you are, accidents may occur and you want to have protection in such cases.
• Legal expenses insurance policy – this type of policy offers coverage for a variety of legal issues, such as: employment disputes, property disputes, VAT appeals, tax investigations, etc.
3. Do I need a Self-Employed Public Liability Insurance Policy?
The short answer is of course, yes. These insurance products offer liability in case a third party makes a claim against you. Their claim might occur in different circumstances. Accidental damage to a given property or injury claims is two of the most frequent instances in which a third party may make a claim. For self-employed carpenters, having this type of policy is almost mandatory, since unpleasant situations might occur when you least expect. Also, given the nature of your work and products, accidents are very likely to happen. Moreover, in case there are taken legal steps against you, a policy of this kind will cover legal costs as well. Indisputably, choosing a reliable insurance company will influence how much coverage you have and against what types of actions.
4. Are there additional insurance policies in which I should invest as a carpenter?
Yes, you may want to select a wider insurance policy package, depending on your preferences and needs. For instance, some additional insurance policies which you could consider are:
• Tools & Equipment insurance policy – this will offer you coverage in case your tools or equipment will suffer at some point in time damage or malfunctioning, or even theft. Given the fact that the type of activity which you perform is based on the majority on these elements, better consider investing in such insurance products.
• Contractors All Risks insurance policy – mainly tailored for builders and carpenters, this policy will offer coverage in case of hazardous events that may occur while working on a project.
• Business Contents insurance policy – this is another option for tools & equipment insurance policies, but with a more extensive coverage.
• Professional indemnity insurance policy – will offer you coverage in cases of professional negligence claims form third parties.
These are some useful pieces of information regarding insurance policies for self-employed carpenters. Make sure to inspect the market carefully and identify the most appropriate insurance company for your exact needs. Only this way, you will find the products that offer the most coverage for your exact needs and only this way you will be able to protect your business and assets.
