What Insurance Do You Need as a Trade?
Written by James Walker · Last reviewed 16 August 2026
James Walker has 2 degrees in construction (BSc (Hons) Building Surveying · MSc Environmental Design of Buildings) and an extensive background in issue resolution, resolving over £4 billion of consumer issues.
The short answer
- Employers' liability is legally required if you employ anyone, including some casual labour.
- Public liability is not legally required but working domestic jobs without it is a serious exposure.
- Contract works cover protects the job itself while it is in progress.
- Professional indemnity matters if you give design or specification advice.
- Liability insurance generally does not cover defective workmanship. That misunderstanding is expensive.
On this page
Employers' liability
Legally required where you have employees. The definition can extend further than people expect, labour-only subcontractors may count depending on the arrangement.
The penalties for not holding it are significant. If anyone other than you works on your sites, get advice on whether you need it.
Public liability
Covers injury to people and damage to property arising from your work. Not a legal requirement, but:
- Most accreditation schemes require it
- Most commercial and local authority work requires it
- A burst pipe or a fire in someone's home is a claim you cannot personally fund
Check the cover level against what could be damaged, not against the value of the job. A small job in a large house carries large exposure.
Contract works
Covers the work in progress, fire, theft or storm damage to a part-built extension. Relevant on larger projects, where the gap between starting and finishing represents real value at risk.
Establish who is insuring the works: you, or the customer under their own policy. Both assuming the other has it is a common and expensive gap.
Professional indemnity
Relevant if you advise on design or specification rather than only building to someone else's. If you are specifying, you are advising.
What liability insurance does not cover
Defective workmanship. Liability policies cover damage caused by your work; they do not pay to redo work that was not right.
That is what a workmanship warranty or an insurance-backed guarantee is for, and it is a separate product.