Insurance is not exciting. Most Irish tradespeople put it off until something goes wrong. Then they realize they cannot afford the claim, and it sinks the business.
This guide tells you what insurance matters, what does not, and what you actually need to buy.
Why Insurance Matters More Than Most Tradespeople Think
A customer slips on your wet floor and breaks their leg. They sue you. Claim: 50,000 euros. You have no insurance. You are now paying 50,000 euros from your business account, or you are declaring bankruptcy.
One bad claim can end your business. Insurance is not optional. It is the foundation.
Most tradespeople put off getting proper cover until they are forced to. By then, they are either working illegally or operating with inadequate cover.
Do not be that person.
Public Liability Insurance
This covers injury to other people or damage to their property caused by your work.
What it covers: A customer gets hurt on your job site. A worker falls and injures themselves. You damage someone’s kitchen while installing a boiler. You accidentally cut through a water pipe. All of these are covered by public liability.
How much cover do you need? The minimum for most domestic work is 2.6 million euros. This sounds like a lot, but it is the standard. For commercial work, clients often require 5-10 million euros.
As a small tradesperson, you do not need to buy 10 million euros of cover if you are only doing residential work. 2.6 million is sufficient and standard.
Cost: Roughly 150-300 euros per year for a sole trader, depending on the trade and your claims history.
Do not skip this. This is the one insurance you absolutely need. Every Irish tradesperson should have it.
Employer’s Liability Insurance
This is required by law if you have employees or hire labour-only subcontractors.
What it covers: If an employee or contractor gets injured while working for you, employer’s liability covers the legal costs and compensation.
Do you need it? If you are a sole trader with no employees and you never hire subcontractors, no. If you have even one employee or if you regularly hire labour-only contractors, yes. You are required by law.
Cost: Roughly 100-200 euros per year if you have one employee.
How to get it: Usually bundled with public liability as a package. Most brokers offer “public and employer’s liability” together.
Important note: A labour-only subcontractor is sometimes treated as an employee for insurance purposes. If you hire someone to come help you on a job and pay them per day or per job, you likely need employer’s liability cover. Check with your broker.
Tools and Equipment Cover
This covers theft, damage, or loss of your tools and equipment.
What it covers: Your van gets broken into and someone steals your power tools. Your ladder gets damaged in the van. Your hired scaffolding is damaged on site. These are covered.
Do you need it? It depends on the value of your kit. If your tools are worth 2,000 euros, cover might cost 100-200 euros per year. If your tools are worth 10,000 euros, it might cost 400-600 euros per year.
Do a rough calculation. How much would it cost to replace all your tools tomorrow? If that number would hurt the business, get cover. If you could absorb the loss, skip it.
Cost: Usually 5-10% of the value of your tools per year.
Where to get it: Some brokers include this automatically with other cover. Some sell it separately.
Professional Indemnity Insurance
This covers mistakes or failures in your design or advice.
Who needs it? If you only install what you are told to install, you do not need it. If you design layouts, specify materials, or advise on suitability, you might.
Example: You are a plumber. You install the heating system a developer specified. If something goes wrong, public liability covers it. But if you designed the heating system and got it wrong, professional indemnity covers the error.
Cost: 200-500 euros per year, depending on the trade and the scope of your design work.
For most trades: Not essential. Electricians and engineers are more likely to need it than plumbers or painters. Check with your broker if you are unsure.
What Customers and Developers Now Require
Before you hire onto a job, most commercial clients ask for:
- Public liability certificate showing you have at least the required cover.
- Employer’s liability certificate if you have employees.
- Sometimes a tax clearance certificate from Revenue (we will cover this in another post).
Residential customers rarely ask, but commercial and new-build clients usually do. If you want commercial work, you need these certificates.
Most brokers send certificates automatically when you set up cover. Keep them in your van or on your phone so you can show them when asked.
How Much It Costs: Rough Ranges for Irish Sole Traders
Public liability only: 150-300 euros per year.
Public and employer’s liability together: 200-400 euros per year.
Public, employer’s, and tools cover: 400-800 euros per year.
These are rough ranges. The actual cost depends on your trade, claims history, and insurer.
Where to Get Insurance
Use a broker who specializes in trades. Arachas is a well-known broker in Ireland. Others exist. Get quotes from 2-3 brokers. Prices vary, and cover terms vary.
When you get a quote, make sure it includes exactly what you need. Do not pay for cover you do not need, but do not skimp on cover you do.
The Biggest Mistake
The biggest mistake is working without insurance or with inadequate limits. Some tradespeople work uninsured because they think they cannot afford it. They usually cannot afford the alternative, which is the first claim wiping them out.
The second biggest mistake is letting cover lapse. Your certificate expires. You forget to renew. You work for a week uninsured. This is how claims become uninsured claims.
Set a reminder for three weeks before your renewal date. Renew early. This prevents lapses.
Insurance is boring, but it is the thing that keeps your business alive when things go wrong. Get it sorted now, and you will not have to think about it again.
Written by Maebh Collins
ACA qualified, Dundalk-based. I build websites and write SEO content for trade businesses across Ireland and the UK. If you have questions, get in touch.