Field Service Insurance Guide 2026
General liability, workers’ comp, bonding, cyber—what to buy, coverage limits, and shopping tactics for service contractors.
Risk reality
£250k
Average liability claim when things go wrong.
Field service work mixes high risk (gas, electrics, water) with customer property. Insurance isn’t optional; it’s the buffer between one mistake and six figures of liability.
⚠️ Not Insurance or Financial Advice
This guide provides general information only and should not be considered insurance advice, financial advice, or a recommendation to purchase specific insurance products. Insurance requirements, coverage options, and premium costs vary significantly by location, business size, claims history, and individual circumstances.
Before purchasing insurance: Consult a qualified, FCA-regulated insurance broker who can assess your specific risk profile and recommend appropriate coverage levels. The coverage types, policy limits, and premium estimates mentioned in this guide are for illustrative purposes only and may not reflect current market rates or your specific needs.
Operating without adequate insurance can expose you to catastrophic financial liability. Conversely, over-insuring wastes money. Professional advice is essential.
Financial Conduct Authority (FCA): fca.org.uk | Find FCA-regulated insurance brokers at FCA Register
Field Service Insurance Basics
Most carriers underwrite trade contractors on two factors: risk profile and claims history. Before you shop, audit your risk:
- Working with water, gas, and electrical systems
- Using power tools and heavy equipment
- Working at height or in confined spaces
- Handling hazardous materials
- Operating inside customer properties
General Liability (Essential)
The core policy that covers bodily injury and property damage claims.
Bodily injury
- Customer injured by your equipment
- Slip-and-fall accidents on job sites
- Visitors hurt at your office
Property damage
- Water damage from plumbing mistakes
- Electrical fire damage from installations
- Accidental damage to customer property
Personal & advertising injury
- Libel or slander claims
- Copyright infringement in advertising
- Wrongful termination (when endorsed)
Typical limits: £1M per occurrence / £2M aggregate. Higher for commercial contracts.
Cost benchmarks:
- HVAC contractors: £800–£2,500/yr
- Plumbers: £1,000–£3,000/yr
- Electricians: £600–£2,000/yr
- Cleaning services: £400–£1,200/yr
Workers’ Compensation Requirements
Legally required once you hire employees (varies by country—check local law). Covers medical bills and lost wages for injured staff.
HVAC installation
£3.50–£8.00 per £100 payroll per £100 payroll
Plumbing
£4.00–£9.00 per £100 payroll
Electrical work
£2.50–£6.00 per £100 payroll
Cleaning services
£1.50–£3.50 per £100 payroll
Commercial Auto Insurance
Protects vans/trucks and covers accidents while driving for work.
Single commercial van
£1,200–£3,000/year
Service truck
£1,500–£4,000/year
Fleet (3+ vehicles)
£3,500–£15,000+/year
Professional Liability (Errors & Omissions)
Covers design mistakes, faulty advice, and code compliance failures.
HVAC contractors
- System design and load calculation errors
- Code compliance failures
- Energy efficiency performance claims
Electrical contractors
- Wiring design errors
- Smart home integration faults
- Power quality issues
Plumbing contractors
- Pipe sizing mistakes
- Water pressure issues
- Backflow prevention failures
Surety Bonds
Required for certain council/commercial contracts. Guarantees you finish the job or the client gets compensated.
- Bid bonds (5–10% of project)
- Performance bonds (10–20% of project)
- Payment bonds (ensures subcontractors/suppliers get paid)
Business Property & Equipment Coverage
- Tools-in-transit coverage for equipment stored in vans
- Owned buildings/workshops
- Contents (inventory, office equipment)
- Business interruption cover after insured loss
Cyber Liability Insurance
Even “analog” trades are targets—contractor CRMs hold payment and identity data.
Ransomware
Criminals encrypt your data and demand payment
- Can halt operations for weeks
- Average ransom £50k–£200k
- Recovery costs often exceed ransom
Data breaches
Customer information stolen/exposed
- Notification + credit monitoring
- Regulatory fines
- Reputation damage
Business email compromise
Criminals impersonate executives for wire fraud
- Average loss £120k
- Hits even small trades businesses
Umbrella Insurance
Provides extra £1M+ liability limits that sit above general liability, auto, and employers’ liability policies.
Cost Optimization & Shopping Tips
Risk management programs
- Safety training (5–15% discount)
- Drug testing (5–10%)
- Fleet telematics (10–20%)
- Security systems reduce property premiums
Policy structure optimization
- Higher deductibles save 10–25%
- Bundle policies to leverage multi-line discounts
- Multi-year contracts lock in rates
- Pay annually to avoid financing fees
Claims Prevention & Risk Management
Insurers reward clean records. Implement checklists for high-risk tasks, require job photos, and run toolbox talks weekly.
Build a pricing command center in Toolfy
- •Quote templates, emergency premiums, and deposits all in one library
- •Real-time job costing shows margin before you send the quote
- •Scenario calculators feed straight into invoices and payment plans
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