Episode Transcript
[00:00:00] Speaker A: Welcome back to the Stay Safe podcast. I'm your host, Liam Scott and today we're going to be talking about insurance.
If you're self employed or working as a contractor, you might assume you're covered by the main contractor's policies. But many independent tradespeople aren't covered at all. And if something goes wrong, you could be one that's left out of pocket.
So today we're going to cover why insurance is crucial for contractors, what types of insurance you actually need, and the risks of doing work outside of your qualifications. Because if you're not properly insured, one accident could cost you everything.
So, to our facts, nearly 40% of self employed tradespeople in the UK admit that they don't have the right insurance. And 80% of workplace injury claims in construction involve contractors or subcontractors. So if you're not covered, a single accident could mean medical bills coming out of your own pocket, lost wages while you recover, with no safety net and legal costs. If you're sued for damage or negligence.
Many contractors assume that they are covered by the main contractor's policy. But in most cases you're not. Unless you have your own cover, you will be taking a massive financial risk every time you step out onto site.
And so when we look at the different types of insurance, it's not enough to just say, I have insurance, you need to make sure you have the right insurance. So public liability insurance covers you if you injure someone or damage property whilst you're working. So if you drop a heavy tool and it smashes a client's window, that cost is covered.
We also have employers liability insurance which covers if you have employees or laborers working for you. And this is legally required insurance, it covers claims if an employee gets injured or ill due to work.
We have personal accident and income protection. So if you get hurt and can't work, how are you going to pay for your bills? This provides a financial cushion whilst you recover. And then we have professional indemnity insurance if your work involves any design consultancy or advice. This covers the claims of any negligence. So, for example, if you design something incorrectly and it leads to costly repairs, you would be protected with that insurance.
And so what are the risks of working without proper training?
[00:02:18] Speaker B: This podcast is being provided by Scott, risk management specialist, health and safety consultants.
If you operate an SME business, you know that meeting all of the business needs is a juggling act. If you want to simplify safety, save time and stay compliant, SRM GENIE is the solution.
For more information, head to the details at the End of this episode.
[00:02:42] Speaker A: So here's something that people don't always realise, but insurers won't cover you if you're doing work that you are not trained or qualified for. So if you take on a job outside of your skill set and an accident happens, your insurer might refuse to pay out, which again can mean medical costs, potential legal action and lost income whilst you recover.
So before you agree a job, check in with yourself. Do I have the right training and qualifications for the work? Am I properly insured to do the task? Because if the answer to either of these is no, then you are taking a massive risk.
And what should you be checking before you start the job? So before stepping onto site, check your cover. So have a look at the policy and know what's covered and what isn't.
Confirm with the main contractor and never assume that you're working under their insurance. Make sure it is confirmed if you are, and keep records. So if something happens, you need proof that you were covered at that point.
So a five minute check now could save you thousands in the future.
So a nice short topic today. Insurance might not be the most exciting of topics, but it is critical. You might do everything right for years. It only takes one mistake or accident to derail your career and all of your hard work. So before you take on your next job, just check. Am I properly covered if something goes wrong? Do I know what my insurance actually covers? And am I sticking to work that I am qualified to do?
Because the worst time to figure out that you're not covered is when you actually need it.
Thanks for listening. Bye for now.
[00:04:09] Speaker B: This podcast has been provided by srm, the owners of the bespoke health and safety management software SRM genie, created for and focused on supporting SME businesses. If you would like more information on how you can simplify safety, save time and stay compliant, go to www.srmgeniesoftware.co.uk.
