Electrician insurance

Business insurance for electricians

You’re a bright spark. You’ve worked hard for your qualifications and spent years building your electrical business. You wouldn’t leave it at risk, any more than you’d leave a live wire exposed.

But without the right business insurance, that’s exactly what you’re doing. Because no matter your qualifications or experience, accidents happen and errors are made.

And you know, better than anyone, when electricity’s involved, these can be serious.

All it takes is one mistake and – bang – you could be facing a lawsuit. Lawyers don’t come cheap. And if you have to find the money for damages, too, all your hard work could go up in smoke.

• Who needs electricians’ insurance?

  Do you run a small electrical business? Are you a self-employed electrical contractor? Are you an electrical subcontractor?

  If you answered ‘yes’ to any of those questions, you need electricians’ insurance. It protects your work and bank balance if something goes wrong and sparks fly.

  Read more about what insurance electrical contractors need.

• Why do electricians need general liability insurance?

  General liability insurance for electricians insulates your business against claims. If a client sues you for damage to themselves or their property – even if it’s not your fault – your coverage can pay your legal defense fees. And compensation, if it’s due.

  Why wait for the shock of a suit? Neutralize risk with a few clicks of a mouse.

  A general liability policy can cover the cost of claims for:

  Bodily injury – a client trips over your toolbox while you're working at their house, breaking their arm. Your coverage can pay their medical expenses.

  Property damage – rewiring at your customer’s home you knock over a display cabinet, smashing several antique figurines. Your coverage can pay for repairs or replacement.

  Personal injury – you're overheard making some snide remark about a difficult customer. They sue you for slander. Your coverage can pay for an attorney to defend you and compensation - if you're found liable.

• Why do electricians need professional liability insurance (E&O)?

  Because general liability insurance covers the cost of claims someone got injured, or you damaged their property while you were working.

  It doesn’t cover claims you made a mistake or your work was faulty. That’s what professional liability (or errors and omissions) insurance is for.

  You take pride in your work and you don’t cut corners. But things don’t always go right. All it takes is an improper installation or a defective product for you to find yourself on the wrong end of a lawsuit. And without professional liability insurance that’s going to cost you.

  Professional liability insurance can hire you an attorney, pay your legal fees and compensation too. Even if a claim is groundless. And as you can be sued whether you made a mistake or not, it’s a pretty handy piece of kit to have in your toolbox.

  You can also make your policy retroactive. So work you’ve done in the past is covered too.

• How much does electrician insurance cost?

  The price of a policy will vary from business to business. It’ll be affected by things like:

  • your experience and qualifications
  • the number of staff you have, and
  • the value of tools and equipment you own.

  Been in the business for years with no history of problems? Your insurance will cost less than an electrician who’s just starting out. Or who’s had lots of claims in the past.

  Are you a one-man band who sticks to small projects? You’ll pay a lot less for your insurance than a major electrical contractor with a team of staff.

What other kinds of insurance do electricians need?