Running your own small building business is tough enough at the best of times. But imagine what would happen if you had an accident and were unable to work for weeks on end?
Your company could be in serious trouble as the bills continue to mount up but you aren’t physically able to go out and graft.
That’s where accident insurance comes in – it provides financial cover for times when an injury means you are unable to earn money.
Accident insurance is not a legal requirement like employers liability (internal link) but it is highly recommended to protect you as a small builder if the unthinkable happens.
How does it work?
You pay a monthly premium and in return the insurer pays out agreed sums if you suffer an injury like a broken leg or dislocated shoulder. The payment is usually in the form of a one-off lump sum or a set amount per week up to a pre-agreed maximum time limit.
Do I have to be injured at work?
No – most policies cover any type of accident, wherever it happened, which prevent you from working.
What about the rest of my bills when I’m off injured?
A number of policies can be extended to cover things like mortgage payments and outstanding loans following an accident.
How much does this all cost?
Policies for the lowest amount of cover can start as low as £5 per month but a realistic level of cover will start at around £30 a month. Builders Box has scoured the market to look at the best schemes available to come up with our:
Top 5 products:
Etradesman insurance
This web based firm is underwritten by Norwich Union and offers online quotes for its small builders’ personal accident policies. Cover is on offer for business owners as well as all employees under 75. The policy covers death, loss of sight, hearing, speech or limbs, permanent and temporary disablement. The cover is sold in units with 1 unit paying out £5,000 following death or loss of sight, hearing, speech or limbs. The policy pays out £50 per week per unit for temporary total disablement and £25 for temporary partial disablement. Policy holders can buy up to 10 units per person.
B&CE
The construction industry benefits company has a special accident insurance policy for self-employed builders. The RapidCash policy protects you against injuries that stop you working from a broken arm to a ligament strain. Premiums range from less than £3.50 a week up to £7 and the maximum payout is £300 a week for up to three months following an accident. All claims cash is tax free and you do not have to pass a medical to get cover.
Trade Direct
The specialist small builder insurer provides a full range of accident policies which can be extended to cover sickness. The policy pays out a weekly benefit should you be temporarily unable to work and a lump sum benefit for more permanent conditions. Weekly benefit is payable for up to two years for accident claims and for up to one year for sickness claims. Premiums start at £11.23 per month for accident cover and rise to £27.27 for the maximum benefit of a £50,000 lump sum or £500 a week.
Norwich Union
The insurance giant offers a range of personal accident policies for small builders. The scheme pays out a tax-free lump sum if you are permanently disabled by an accident. It covers you for permanent total disability, loss of sight or loss of a limb caused by an accidental injury. The policy starts at just £1.99 per month and is available to anyone aged between 18 and 80 who is a permanent resident of the UK. It also covers you worldwide for up to 12 weeks in any 52 week period. Anyone taking out a new policy receives the choice of a free gift detailed on the website. Policy payments can only be made by direct debit.
Axa Tradesmen Insurance
The firm offers personal accident cover as standard on its employers’ liability policy. It is designed for firms turning over less than £500,000 and employing less than 8 people. The cover applies to small building company owners and directors under 75 and pays out a maximum of £500 per week for up to 104 weeks following an accident leaving you unable to work.
