Shed Insurance

[John Mitchell]

With so many options for insurance now available, Sheds need to be sure that they are making the right choices and spending wisely.

Bill Hoeneveld wrote:
Some men have Sheds that are sparkling and clean
All tools hanging up that can be easily seen
Other bloke's Sheds are a bit of a mess
And even some others are in a state of distress

When I started looking into Shed Insurance all those years ago there was really only Zurich.  Now we have: Wessex Insurance; Simply Business; Ladbrooks; Greenwood Moreland; Aqmen Underwriting; Zurich Insurance and E&G.  There are probably others, but these are the ones I have found who are claiming to have products specifically for Sheds.

You have options - use them and make sure that you bench-mark your quote with another supplier!

In our view - and we are Wessex Insurance - Sheds need Public Liability Insurance to protect the Shed against claims which could be made against it for accidental damage to other people’s property or for compensation for accidental injury or illness to people in the Shed– whether they are Shedders or visitors - where the Shed is proved to be at fault.  Cover is also active where the Shed is ‘operating’ out in the community for example.

So that’s what a Shed needs: Public Liability Insurance preferably with a limit of £5m.

Sheds should also consider having Employers’ Liability – even if they have no employees - as the law says that anyone acting in the capacity of an employee is treated as an employee in law.  Examples are supervisors, or trainers – as they are acting on behalf of the Shed and if they are injured and decide to sue the Shed, the Public Liability Insurance will not protect the Shed – only Employers’ Liability will protect the Shed in this case.

What else can you buy?  Well, insuring your tools and stock is a good idea particularly as there have been break-ins and thefts from Sheds.  I realise that in most cases, tools in Sheds are donated, but as Sheds mature they tend to buy more up to date kit and more specialist tools, so it is really in your interest to safeguard those investments.  This should cost about £15 per £1,000 of value and excesses range from £100 to £350 depending on who you insure with, so take that into account when working out whether or not to insure your contents and stock.

There are other insurance covers you can buy, (such as Trustee Indemnity, Legal Expenses (which we provide for free with every policy anyway), Buildings Insurance, Business Interruption) but, in the first instance, Public Liability, Employers’ Liability and contents insurance will make sure that your Shed is safely protected against incidents, accidents and break-ins.

Don’t forget that the insurance is really the Shed’s last resort.  By the time you call the claims number, the worst has already happened, so:

1. Adhere to your Health and Safety Policy – and make sure everyone does!
2. Make the Shed as secure as possible with locks, bars, alarms etc.
3. Talk to a knowledgeable insurance broker who knows about Sheds and who has visited Sheds and get them to explain what insurance you need and why.  They can also talk you through the additional insurances you might need.
4. Don’t buy a policy online unless you know that it is appropriate and don’t just buy the cheapest.