Business Insurance for Electricians*
Electricians need business insurance, including public liability insurance as electrical work is high liability, with major accidents and damages possible on sites.
People and property on site may be hurt or damaged due to accidents involving an electrician’s work.
Installing and repairing electrical wiring , systems and hardware is high risk , and result in many claims against electricians for property damage and personal injury.
Also, when working with electricity , electricians can injure themselves from electric shock or burn.
Fire caused by faulty electrical equipment or installations may result in electricians being liable for property damage, or injury to other persons.
Fortunately, suitable business insurance for electricians may provide protection against financial hardships that could arise from accidents, property damage, or legal claims caused by your electrician business activities.
Electrician business and public liability insurance may cover property damage, injuries to third parties that are caused by your electrical equipment and work activities.
What Insurance Do I Need as an Electrician?*
Some of the major types of business insurance covers available to electricians in Australia are explained below and include:
- Public Liability Insurance
- Business Insurance Pack
- Personal Accident Insurance
- General Property and Tools
- Commercial Motor insurance
- Plant and Equipment Insurance
Why do Electricians need public liability insurance?*
Public Liability Insurance coverage is essential for all self-employed electricians.
Electricians need public liability insurance as electrical work involves working with the supply of power and electrical wiring that increase the probability of an accident on site.
People and property on site may be hurt or damaged due to accidents involving electrical work.
Contact with exposed live parts, and the possibility of equipment fault means electrical work is rated as a high-risk occupation.
Protections offered to self-employed electricians by public liability insurance in Australia generally include:
- Injury to other persons due to your electrician activities –Where an electricians business activity causes harm to a third-party person. For example, electricity jumps from one circuit to another, creating a fire and harm to another person, who has not listened to your warnings to stay away from the site .
- Damage to others property due to your electrician activities – Where an electricians business activity causes damages to a third- party’s property. For example, an electrician may accidently cause damage in a client’s home while performing work.
- Harm to other persons or other persons property due to your electrician business’s products – Where an electricians business’s products and goods supplied causes harm to a third party -person or a third- party’s property. For example, products an electrician has supplied, repaired, or manufactured cause harm, injure someone or cause property damage.
Public liability insurance coverage may protect electricians from claims that arise when others allege, they are negligent.
A electrician’s public liability policy may provide a defence against the ensuing lawsuit when needed and may pay the damages sought by the injured party.
Business insurance pack for electricians *
Electricians may be able to combine multiple covers in a single business insurance pack policy.
By ‘packaging’ your business insurance into a ‘business pack’ electricians can potentially cover many of the risks their business faces in the one policy.
For example, if an electrician has a commercial premises, a business insurance pack may provide cover for buildings and contents if they are accidentally damaged by a defined event, such as fire, storm, impact damage, accidental damage, vandalism, or malicious damage.
Other typical inclusions for electricians with a business insurance pack are Public Liability Insurance and Product Liability Insurance.
Optional inclusions for electricians with a business insurance pack are General Property, Contents, Machinery, Plant and Stock , Glass, Money , Business Interruption and Marine Cover.
Personal Accident Insurance for self-employed electricians*
As a self-employed electrician your personal safety is your livelihood.
Personal accident insurance for electricians may provide cover for 52 or 104 weeks and up to 85%* of weekly income at the time of the injury; depending on the amount of coverage agreed when the policy is taken out.
Time away from work from an accident will have a direct impact on a self-employed electrician’s income, and a long period away can negatively affect their savings, family, and lifestyle.
Personal Accident Insurance may help self-employed electricians pay for essential bills and other financial commitments if they have an accident.
General Property and Tools Insurance for electricians *
As an electrician, you are likely to have many tools and equipment that allow you to do your job, such as wire strippers, pliers, test lights , multimeters and power tools.
If your property is damaged or stolen, your business cannot operate effectively.
General property insurance can help you keep operating effectively.
It can provide needed funds to replace your tools such as …. wire strippers, pliers, test lights , multimeters and power tools – and help keep you in business.
Commercial motor insurance for self-employed electricians *
Commercial motor insurance should be considered for electricians that drive their vehicle from site to site. Light trucks, vans and Utes may be covered.
Plant & Equipment Insurance for electrician businesses*
Plant & Equipment Insurance may provide cover for owners of small electrical businesses that operate equipment such as clamp meters, insulated screwdrivers and pliers, insulation testers and forklifts.
Cover may provide electricians with protection for theft, damage, consequential loss, liability, road risk and machinery breakdown.
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What are the costs of Electrician Public Liability Insurance?*
How much does public liability insurance cost for self-employed electricians? *
Key factors in determining how much Public Liability insurance will cost a electrician include:
- The nature and scope of the electrician’s For example, the type of work performed by the electricians.
- The electrician’s business turnover and size. For example, is the electrician a sole trader that does 100% of the work themselves, or do they employee a team of 4 subbies?
- Amount of insurance cover the electrician’s business needs. Liability starts with $5 million cover, $10 million is popular with many self-employed contractors, $20 million cover is needed for electricians that work for large companies, on commercial sites or have a team of employees.
Public liability insurance cost for a self-employed electrician with no previous claims, starts from around $750* or $70 per month for $5 million Public Liability Insurance.
*** Please note ***: While cheap Public Liability Insurance can seem attractive on the surface it is important to ensure the policy covers you for the full business activities you undertake, and that the insurance policy and company will respond as intended when there is a claim. Costs may differ greatly from the above based on the electrician’s business size, clients, experience, and business activities. For many electricians, that work on multi storey buildings or that have employees, costs will be a lot higher.
Do I need business insurance to work as a self-employed Electrician in Australia?*
***Important Insurance Requirements for Electricians ***
In many Australian states, including Victoria, Queensland, Western Australia and Tasmania , an electrical contractor’s licence is required to work as an electrician.
Self-employed electricians, or electrician small business owners, subcontracting for builders will typically be required by the builder to obtain their own public liability insurance to get on site. This is typical for contractors working for builders throughout Australia.
Many small business owners, and even retail clients, will also ask to see proof of a electrician’s insurance cover, called a certificate of currency, prior to awarding them work and ask for an update each year.
As a self-employed electrician, suitable business insurance may provide credibility and valuable protection against the cost of a claim too.
Key Electrician activities that may be able to be covered include:*
- connecting electricity supply wiring to electrical equipment
- disconnecting electricity supply wiring from electrical equipment;
- manufacturing, constructing, installing, removing, adding, testing, replacing, repairing, altering or maintaining electrical equipment or an electrical installation
- installing, troubleshooting, maintaining, and upgrading electrical systems – in residential, commercial and industrial settings
Why do Electricians need tools insurance?*
Electricians need tool insurance as tools are the lifeblood of electricians.
They help electricians just like you to complete work on time, and to deliver quality workmanship.
Electricians have a large number of tools compared to many other electricians. And good tools are expensive. If they break or are stolen, it can impact your ability to get the job done or cost you thousands to replace.
Without tool insurance, you may have to dig into your own savings or borrow money to get the tools replaced or repaired.
Different types of Electricians that may be able to be covered:*
- Light industrial.
- Low-voltage wiring.
Why should Electricians use an insurance broker in Australia?*
If you are a electrician deciding on whether to use an insurance broker for your business insurance, it is important to consider that brokers act in the interests of the self-employed electricians.
Direct insurers and agents act for the insurer. This can be important; especially if you need to claim.
Brokers can help electricians by sourcing competitive quotes on policy inception, negotiate with the insurance companies to prevent or limit increases on renewal, remarket your policy to other suitable insurance companies where appropriate, talk to underwriters about policy wordings, industry classifications and terms, talk to insurance assessors during the claims process and repairers where necessary.
How do I get an Electricians insurance quote?*
Simply TALK to a SMART Business Insurance broker on 1300 542 573 or contact us online for suitable and affordable public liability and business insurance quotes for your electrical business.