As one of Surrey’s leading providers of tradesman’s insurance, we like to keep a close eye on what’s happening in the marketplace so we can offer tradespeople the protection they need.
The last couple of years have seen a renewed focus on home improvements, and changes to the way buildings need to offer us protection as well as function. This has led to a huge rise in demand for tradesmen’s services. From installing home offices to making the garden a place of sanctuary to designing Perspex barriers and covered outside areas, the range of projects being under taken by our tradesman insurance customers has expanded greatly. But what are the latest trends in the world of the tradesperson in this post-pandemic era?
Here at Coversure Guildford, we pride ourselves in providing great value tradesman insurance quotes for Guildford and Surrey’s tradespeople. This latest blog looks at what’s currently in the news for tradespeople and how they can stay protected in this fast-changing world.
We hope this will be of use, but if you’d like some independent advice or a no-obligaton tradesman insurance quote, please contact Coversure Guildford on (01483) 339 623 and we’ll be happy to help.
Key Trends for U.K.‘s Tradesmen
1. Increasing demand for tradespeople? – a recent study revealed that demand for tradespeople has risen by 50% since 2020. When you consider the disruptions caused by lockdown restrictions and supply chain issues, this is a considerable increase. But with the cost of living becoming ever-more prevalent, will the demand for trades lower? According to the latest Government ONS data, construction output has been on the rise over the summer, with August seeing an equivalent rise of £60 million on July 2022, with construction output now up 3.2% (£461 million) on pre-pandemic levels. This is perhaps a good sign, but what was noted, though, was that in August, this increase in demand was for new work rather than repairs and maintenance.
2. The rising cost of materials to slow down? – anecdotally one reason why tradespeople have seen less demand for repairs and maintenance is the ongoing rise in the cost of materials. Be that because of demand and supply issues or because of increasing costs for raw materials; it’s making quotations higher and putting property projects on hold. While prices are still rising, they do appear to be slowing. The August monthly increase for materials was 0.6%, comparing favourably to the 3.7% rise in May and the 1.3% rise in June.
3. Increased sustainability – having been given increased prominence since COP26, it’s perhaps not surprising to see sustainability as a critical trend for tradespeople. Sustainability in terms of popularity for eco home improvements and the materials being used and working practices. The latest Rated People report showed that there had been a 44% rise in the request for ecological home improvements – from roof insulation and heat pump installations to the addition of electric car charging points. With grants on offer and with the increasing costs for fuel and heating, these types of improvements may not only make environmental sense but financial sense too. With the expansion of low-carbon zones, tradespeople may also be looking at the vehicle they drive. While not yet as mainstream as electric cars, the uptake of electric vans is on the rise. By the end of September 2022, ZapMap estimate that there will be more than 29,000 electric vans in use.
4. Labour shortages to continue? – with 3/4 of U.K. businesses impacted by labour shortages, it’s a trend that’s not just affecting trades professionals. A CBI study found that for 46% of businesses affected by labour shortages, this meant that they were unable to meet demand, and 36% had to reduce what they could offer to customers. When there’s demand for your services, but you can’t find the skilled labour you need to deliver the job, it’s a double blow. While some have called for the Government to grant temporary visas to import skills, others may be looking to invest in training and take on less experienced but willing workers.
So, with demand still high and the prospect of more demand, particularly in the area of eco home improvements and new home building, is now the time to start or expand your Tradesman business? Whether your trade is as a builder, plumber, carpenter, or decorator, if you are setting up your own business, you will want to consider tradesman insurance.
What Insurance Does a Tradesman Need?
While there is no legal requirement for tradespeople to have insurance, some customers – local authorities, charities, or large companies, for example – may insist on a certain level of public liability insurance. You’ll need employees’ liability insurance if you employ others, as this is a legal requirement.
Tradesman insurance is more than just business insurance as it’s designed to give you comprehensive protection against the risks you face. It can also cover a wide range of trades, incluidng:
- Electricians
- Plumbers
- Builders
- Gardeners
- Painters and decorators
- Carpenters
And that’s to name just a few. With tradesman’s insurance through Coversure Guildford, we build your cover around your business, so you are protected for the work you do, ensuring you get the protection you need while avoiding paying for cover you don’t.
What’s Does Tradesman Insurance Cover?
Each trade may have differing needs when it comes to insurance. However, a typical policy can provide cover for the following:
• Public liability – covering you if a member of the public is injured or becomes unwell or if you accidentally damage someone’s property, for example
• Employers’ liability – The law says that if you employ at least one person, you must have employers’ liability insurance (sometimes called ‘E.L. insurance’) to protect your employees if they are injured or become ill as a result of working for you
• Tools cover – with tool theft up a reported 11% in the South East, insuring your tools against theft and accidental damage means you’ll have the money to replace them quickly
• Personal accident – protecting your income in the event of an accident that stops you from being able to work
• Construction plant cover – if you use plant machinery such as diggers, cherry pickers, mobile cranes, or forklifts, be they your own or hired-in, then construction plant cover can protect them
And as well as the above risks, tradesman insurance can cover things such as owned plant equipment, contractors’ all-risks, legal expenses, professional indemnity, and cover for stock and materials.
Key Trends for Tradespeople in 2023
While we’ve no crystal ball, we wouldn’t be surprised if the current trends carry forward to 2023. Global economic pressures and legislation around EPC ratings and carbon emissions will likely keep prices and sustainability at the forefront. The need for new homes and increasing demand for improved living conditions for all could result in new builds and repair and maintenance work.
Whatever your trade, if you’d like to benefit from flexible tradesman insurance then don’t hesitate to get in touch. For some independent advice or a no-obligaton tradesman insurance quote, please contact Coversure Guildford on (01483) 339 623 and we’ll be happy to help.
Sources:
Rated People Home Improvement Trends Report 2022 – Rated People Blog
Construction output in Great Britain – Office for National Statistics2
Construction materials shortage easing but prices up by 24% | Homebuilding
THREE–QUARTERS OF UK COMPANIES HIT BY LABOUR SHORTAGES IN LAST 12 MONTHS – CBI/Pertemps | CBI
Tradesman Insurance | Tradesman insurance Quote | Coversure
HVP Magazine – Third of van drivers succumbing to tool theft, new Volkswagen study reports
