Most tradespeople take out some kind of insurance to protect themselves at work. Electricians are no different. Electrician’s insurance is tailored to the needs of professional electricians who want to ensure they are covered should they encounter problems in the workplace.
This page provides you with all the details you need to make an informed decision about what electrician insurance you require. From explaining what your insurance includes to how electrician public liability insurance can help you, we answer all of your questions.
Why is insurance essential for electricians?
All electricians know that working with electricity and electrical infrastructure can be dangerous. Though we take the utmost care to prevent them, accidents do happen. And the repercussions can be significant. Insurance protects you in the event of an accident and ensures you receive financial assistance to deal with the consequences.
Many businesses will not hire you if you do not have public liability insurance. The same is true for contractors. You may not technically need insurance to do your job, but in practice, it isn’t easy to operate without it.
What does electrician insurance include?
Electrician insurance policies vary from provider to provider and policy to policy. Usually, a policy is built around public liability insurance (we will cover that in greater detail later on). Electricians then tailor the policy to their needs by adding any required extras. These extras include:
- Employers’ liability – covers you if you employ staff who are not family members.
- Tools and business equipment – tools and equipment are one of the most expensive assets electricians own. Replacing them is costly. It pays to have a policy that will help you do so quickly.
- Stock and materials – if you invest in stock and materials for a job, you want to ensure they are protected while in storage, transit or on-site.
- Contract works – sometimes events beyond your control cause damage to an ongoing project. Fire, theft, floods and vandalism can all diminish your return on a project if you are not adequately covered.
- Legal expenses – legal disputes are an unfortunate part of doing business. If you face a legal case against a customer or supplier, this type of cover protects you.
- Personal accident – accidents are not uncommon. And they can be life-changing. Personal accident insurance covers you should something happen on-site that prevents you or an employee from working in the future.
- Professional indemnity – if you offer an advisory service as part of your business, professional indemnity insurance protects you from claims of negligence or inaccurate advice.
What type of insurance do you need?
It depends entirely on you. In the UK, insurance for electricians is not a legal requirement. But most professionals sensibly choose to protect themselves and their business in some way or another.
How do you choose which insurance is right for you? We recommend considering the following factors:
- The type of work you do. Some electricians perform a wide variety of work and operate in diverse environments. Others may specialise in specific areas. The type of insurance you require depends on what you do on a day-to-day basis.
- Who you work with. If you employ other electricians, you need employers’ liability insurance. The government can fine you a whopping £2,500 a day without it.
- Whether you want to protect your earnings. As well as insuring tools and equipment, you can also cover yourself against loss of income. This is usually called Business Interruption Insurance. It protects you financially in the event you cannot work for a period.
- Your comfort level. Insurance offers peace of mind. For many people, this is extremely valuable. Others can forget about the consequences and do not seem to worry so much. To a certain degree, the extent of your cover will depend on the amount of reassurance you need.
What is electrician public liability insurance?
Public liability cover is a specific type of insurance that protects you should your work unintentionally injure someone or damage property. This can happen to even the most skilled electricians and is a reasonable precaution, especially when considering the fees typically associated with legal cases.
Electrician public liability insurance usually covers your legal fees and any compensation you pay. However, all public liability policies differ in detail, so make sure you read any policy document properly before agreeing to the deal. Talk to your insurance provider if you have any questions or concerns.
What if I am a self-employed electrician?
As a self-employed electrician, you will need the same cover as most other professionals in the industry. That means electrician public liability insurance and cover for your equipment, tools and any other add-ons you may need. However, as you do not have the same guarantees and protections as electricians who are classified as employees, you may want to consider a few extra things.
These include:
- Income protection insurance – acts as a replacement income if you cannot work due to illness, injury or other unforeseen circumstances.
- Critical illness insurance – similar to income protection. But instead of a replacement income, you receive a tax-exempt, one-off payment.
- Business life insurance – protects your family financially should you die.
Are there any other considerations for electrician insurance?
When looking for an insurance provider, we recommend searching for a broker with the following qualities.
- Responsive and communicative. You want someone willing to listen, answer your questions, and respond quickly to any communications.
- A customisable approach. Different electricians have different needs. Insurance policies should reflect that. If a provider does not let you tailor the policy to your requirements, find one that will.
- Insurance can be complicated. So you want a provider that puts everything on the table and does not hide anything in the small print. If you feel a provider is dishonest or concealing something, they are probably not the right choice for you.
Park Insurance is a specialist insurance provider that benefits from more than 30 years of experience and can help you build the perfect electrician insurance policy.
If you are searching for advice, information or electrician insurance policies that cover everything you need, please get in touch with one of our experienced and professional team members.