What insurance do I need to run a workshop?

A tradesman's workshop

There are many different types of business insurance protection available. We look at which insurance policies are ideal for running a workshop.

Firstly, we need to look at what a workshop is. What immediately comes to mind for many people is a crafts or trades business where products are made, such as bespoke furniture and other woodwork and metalwork is made. For this article we’ll call this a ‘trades workshop’.

But in the modern age of digital marketing, corporate employee training, and other events that are hosted by self-employed entrepreneurs, a ‘workshop’ is also an event where third parties attend to learn something new. For this article we’ll call this a ‘training workshop’.

The two definitions are very different, but insurance is no less important for each. In this article we’ll look at both and which insurances are key to ensuring the business owner and their customers are protected in case anything should go wrong.

Which insurance do I need for my trades workshop?

There are common types of commercial insurance policies that are relevant to many different businesses that operate from physical premises, including:

Public liability insurance (PL) – This policy covers you for accidents or third-party property damage that you are alleged to be responsible for. If you deal with customers and/or suppliers on your premises or through delivering goods to a customers’ homes, then you may need PL insurance in case there is an accident.

Product liability insurance – This type of insurance protects businesses from legal costs associated with a personal injury or damages claim, caused by a product your business has manufactured or distributed. Product liability cover typically comes as part of a public liability insurance policy.

Stock insurance – Even if you mostly sell your products online, your business is still as real as any high street store. Without the right cover in place, your business finances could be at risk if the unexpected happens, such as your stock being damaged or stolen.

You might also want to consider ‘goods in transit’ insurance, which covers:

• Theft of goods whilst in transit
• Damage caused by an accident during transportation of goods
• Loss of goods during transit
• Damage to goods caused during transit.

Employers’ liability insurance (EL) – Employers’ liability insurance will protect you if an employee makes a claim because of a work-related injury or illness. The policy covers legal costs incurred in defending the claim as well as any compensation payments due. EL insurance is a legal requirement if you employ staff.

Occupational personal accident – If you work with sharp tools, with caustic substances such as glues, or in dusty environments, then you are exposing yourself to risk of injury or illness. Personal accident insurance can provide cover for loss of income if you are unable to work as a result of an injuryin the event you are injured or become ill because of the work you do.

Professional indemnity (PI) – This type of business insurance is often overlooked because many business owners believe public liability insurance provides them with enough cover. If you provide professional services, advice, or designs to your customers you should consider professional indemnity insurance. If you run a workshop that produces goods, then it’s likely you will produce designs for items, or work to supplied designs. Should your designs have incorrect measurements, or the work you produce not follow supplied designs, then you could be liable for a compensation claim due to alleged negligence in your work. PI insurance will respond to cover you in the event of a claim.

Business contents insurance - Sometimes referred to as office insurance, a business contents insurance policy can cover damage to the structure of your building as well as protection against the loss or damage of your furniture, tools and equipment.

Business interruption – This policy is often overlooked by business owners because they mistakenly believe other policies will cover everything if their businesses are disrupted by events such as a break-in, fire or flood. Buildings and contents insurance policies will typically put the initial damage right, but they make no allowance for the consequential financial losses your business will sustain due to a long-term interruption to your trading. Business interruption insurance provides cover in the event of damage that directly affects your business. For example, this could include fire and flooding that damages your premises, equipment, or stock.

For further details about insurance for your business please call us, or click here for a quick online quote.

Employees sat down in a training room

Which cover will I need for my training workshop?

Training workshops that are hosted by companies for employees and business owners require no less cover than a trades workshop, but the cover required can be slightly different depending on the type of training and whether tools and equipment are being used.

Public liability insurance (PL) – Many training workshops are typically held either at: the trainer’s premises, the company’s premises, or at a neutral hired venue. Therefore, as the host of the workshop you’ll require public liability insurance. Even though it isn’t a legal requirement, many venues will not allow you to host events or workshops unless you hold a live public liability policy which will provide cover in the event of an accident (and potential injury) suffered by an attendee to your workshop, and accidental damage to an attendee’s property or damage to the property of the venue.

Professional indemnity (PI) – As a training provider who is hosting a workshop, you should consider carrying professional indemnity insurance, which provides cover for professionals who give advice or provide professional services to clients. The policy will cover you if training you provide is acted upon by an attendee, who then suffers a financial loss as a result of your training advice, who then makes a negligence claim for compensation against you.

Portable equipment cover – If you work on the move, you’ll likely carry your office in a bag, which could include your laptop or tablet, smartphone, cables, removable storage devices, projector, and cameras. All of which can be expensive to buy and replace if they are lost, damaged or stolen. The policy is typically provided as part of a public liability policy and offers cover for your portable electronic devices whilst you’re working away from your premises (ideal if you run training workshops). Speak to your insurance provider to find out more about portable equipment insurance.

Employers’ liability insurance (EL)EL insurance is a legal requirement if you employ staff and will cover you if an employee makes a claim because of a work-related injury or illness. As an example, if one of your employees, who helps you with your training workshops or delivers the workshops for your business, falls and suffers an injury that prevents them from working, the policy would respond to cover a claim for their loss of income.

Occupational personal accident – If you work as a self-employed trainer, personal accident insurance can cover you for loss of income if you are unable to work if you are injured or fall ill as a result of your work. For example, you could fall when carrying your equipment into or out of a venue, which could sideline you for weeks or months until you fully recover.

To find out which insurance is better suited to your workshop contact us, or fill in our online quote form.

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