Basic electrician insurance typically covers injuries or property damage to third parties and liability cover for any employees injured due to work as well; plus, a policy might include other coverages such as professional liability and cover for tools. Every electrician’s insurance policy is different, however, to suit the needs of the business. You can combine several coverages to create a coverage that works for you, both in the protection it offers and the amount you pay for it.
Firstly, public liability for electricians will ensure you’re covered if a third party – say a customer, member of the public or another business you’re sharing a site with – incurs property damage or injury as a result of your work. It’s often sold alongside product liability, which covers you for any damages resulting from an item you recommended or used while working on a project.
The combination of the two create a well-rounded cover that allows you to get on with your work without the fear of potentially expensive legal cases if something goes wrong – both public and product liability will cover any legal expenses you accrue in court, as well as any compensation a court may eventually award against you.
If you hire any staff, you’re legally required to hold an employers’ liability policy. It doesn’t matter whether they’re full-time, part-time, or even working for you on a one-off – if you’re the one employing them, you must have coverage. Employers’ liability will protect you if a member of your team becomes unwell or injured while working for you and believes you’re at fault (perhaps you provided them with faulty equipment). Like public/product liability, it’ll cover both legal expenses and any compensation you’re required to pay.
Professional indemnity is a must-have for any electrician offering their advice or knowledge as a service (say, drawing up blueprints or advising customers on the best materials to use). It’ll protect you if your client isn’t happy with your advice or service and feels you’ve been “professionally negligent” while working for them. It’ll cover any legal expenses and compensation awarded, so if your customer wants to make you pay to have the work redone (assuming you were negligent in the first place, and they’re not just making a fuss over nothing), then you’ll be covered.
Tools insurance is worth considering if you have any equipment that it might be challenging to replace, whether you’d struggle to source another similar piece or are unsure how you’d cover the costs financially. If a tool is stolen, lost or damaged accidentally (fire, flood, etc.), then tools cover will pay for you to buy an equivalent replacement.
You might see it sold with goods in transit cover – this will cover your tools while they’re in your van going from A to B, and the two combined mean you’ll be covered around the clock, no matter where you or your tools are.
If you rely on your work for the majority of your income and aren’t sure how you’d cover your monthly outgoings (phone bills, utilities, mortgage, etc.), if you had to take time off of work unexpectedly, then you should consider income protection/personal accident insurance. As the name suggests, they’ll cover you for a percentage of your monthly income while you’re off work, allowing you to continue covering bills and keeping the fridge well-stocked as you recover.
And finally, if you’re using a car or van to support your business, then you’ll need an appropriate form of business use vehicle insurance. It’ll cover your vehicle for the risks of being on the road for work (longer hours, unfamiliar roads, etc.). Suppose you are using a vehicle to support your business. In that case, you must have business use level insurance (at least) and remember it’s illegal to be on the road without the correct vehicle cover.
If you have any further questions regarding these coverages, how much they cost or are looking for ways to save, I’d recommend checking out this electrician insurance guide on NimbleFins.
Liability insurance for electricians
Public liability insurance for electricians will protect you in the event that a third party (member of the public, client, other business) is injured or incurs property damage as a result of your work. It’ll cover both any compensation a court awards to the third party and the cost of your legal expenses while defending yourself.
- Property Damage example: While carrying your toolbox through a customer’s home, you drop it and damage their wood flooring. They sue you for the cost of repairs.
- Injury example: While working on a busy construction site, you leave some copper wire out in a pathway and a contractor from another business trips and falls. They can’t work for 3 weeks due to their injuries, and so sue you to cover their lost income.
Professional indemnity insurance covers you in the event that a customer feels your work is ‘professionally negligent’. This covers a broad range of issues, but most boil down to a customer being unhappy with the quality of your service or advice. Simply put, if a customer is unhappy and is seeking a refund or money for repairs/replacement, then professional indemnity has got you covered.
- Professional Indemnity example: You’ve drawn up some blueprints for a customer; however, while they’re putting it together, one of the materials you recommended fails and causes a fuse to blow. They sue you to cover the cost of having the blueprints redrawn and the fuse replaced.
Electrician liability insurance cost
£2M of public liability insurance for an electrician is likely to set you back around £89 annually. If you were looking for more, perhaps you work on more expensive projects/client sites, then £5M will cost around £127 for the year.
There are a few factors driving costs – such as the locations you work (domestic vs commercial), how much experience you have in the industry and whereabouts you’re based (cities, near airports/harbours, etc. are likely to be more expensive), so if your quote comes out more or less expensive don’t be surprised.
Tools insurance for tradesmen
Tools cover for tradesmen can help protect the equipment you use on a daily basis from theft, damage or loss due to a covered event. It can help to minimise your customers’ impact if something goes wrong, allowing you to quickly source and purchase a replacement, meaning you can get on with your work and keep your projects on track.
Adding £2,000 of tools cover to a £2M public liability policy will probably add around £50 annually, assuming you leave your tools in a secure location (secure business premises, home, etc.) overnight. If you usually leave them in your van expect to pay more (due to the increased risk of theft), probably around £95 per year.