Although insurance is an intangible product, it is an incredibly invaluable product to buy. Insurance promises to help put your business back on its feet in case of a setback. Although it is vital for a business to have a conventional policy, renewable annually, covering a single project has its advantages. It is especially applicable if you work from home or at clients’ properties. The cover can apply for people working in various industries such as carpentry and plumbing.
A contractor or subcontractor might especially find this policy attractive since they are sometimes not covered by companies they work for. To be eligible for insurance for tradesman cover, you must be a professional in your work line. Besides, you have to meet the minimum legal age.
A single project insurance cover will be valid throughout the entire project. Over time, the idea has risen in popularity, making it a basic need for every tradesperson. Here are seven reasons why every trader should consider a single project insurance cover.
Unlike other policies, a single project cover guarantees a cover for everyone involved in the project. That includes contractors, as well as consultants. Such flexibility saves you the trouble, giving you a chance to focus on the project itself.
2. Cover after Completion
Annually renewable contracts might terminate their protection after the completion of the project. However, with single project insurance, you can be sure that it will be covered long after completion. The cover can even go up to 10 years after completion.
3. No Cancellation
With annual insurance over, the provider can default payment or limit the amount payable in case of a catastrophe. However, when you have a single project cover, you are guaranteed protection. Once the agreement is sealed, the insurer cannot, in any way, default payment.
4. Tailored Cover
Risks vary from one project to the other. Therefore, a single project cover is tailored to meet the specific needs of the project in question. That way, as the businessperson, you are in control of what risks to be covered, giving you more control over the insurance cover. Depending on the cover you choose, the tradesman insurance can cover public contracts, consulting, working abroad, working on-site and private jobs. With the help of an adviser, you can understand each over before making a decision.
5. Capped Limits
A single project insurance cover revolves around the requirements of the said project. Therefore, contractors cannot cap their liabilities.
While covering a single project, the cost is known upfront to all involved parties. Therefore, as a tradesman, you are protected from incurring any extra cost. The transparency helps you plan on how to settle your premiums flawlessly.
7. Minimizing Disputes
In some cases, in case of an error, contractors and subcontractors may get into an argument. Consequently, the disputes lead to a delay in compensation. However, with a single project insurance cover, such conflicts are avoided, making the compensation process faster and more efficient.
What Tradesman Insurance Covers
A tradesman insurance cover is especially helpful to subcontractors. The cover offers subcontractors both income protection and a cover against public liability.
The income protection cover protects a subcontractor’s income if they do not show up for work due to injury or illness. The cover can compensate up to 75% of the total income missed, easing the blow. In some companies, a subcontractor must have their income protection cover.
In some cases, subcontractors may cause damage or injuries to the general public. In that case, the company they are working for might not take responsibility for the losses. Therefore, it is wise to have this cover since the law might require you to compensate members of the public if you are responsible for the damages. Just like income protection, it is a mandatory requirement in some companies.
Is it Worth the Cost?
Many people believe in conventional insurance covers, like covering their business promises or taking health insurance policies. However, covering a single project is equally worth the shot. If a catastrophe could save you a lot of money, make sure you stay in practice. Besides, there are many packages, allowing you to choose one that best suits your pockets. Get yours today.
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.