What insurance do electricians need?

Working as an electrician is a highly skilled trade that’s always sought after, but it also comes with a wide variety of potential hazards. To make sure you’re completely protected against any unforeseen incidents at work, here’s what you need to know about electrician’s insurance.

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Do electricians need insurance?

Much like how investing in the right electrician PPE is essential for physically protecting you at work, so too is the right insurance essential for covering your business.

Although not all types of electrical insurance are a legal requirement, if you’re a professional electrician, you should have a variety of insurance policies in place to protect you, your reputation, and your finances against any potential accidents, losses, or damages that occur in the workplace.

Whether such an event happens to you, your employees, or your clients, it goes without saying that if the incident is particularly serious, then the costs incurred could be rather substantial. The damage to the reputation of your business could be irreparable.

Thankfully, claims such as these are relatively uncommon, but if a claim is made against you and you don’t have insurance, you will be fully responsible for any associated costs. It makes purchasing electrician insurance an absolute must to ensure you’re covered.

What insurance do electricians need to purchase?

When it comes to the different types of electrician insurance on offer, there are a variety of policy options out there for you to choose from.

Naturally, the type of insurance you require will depend on the level of protection you need, and you likely won’t need to purchase cover for everything. However, as a general rule of thumb, it's a good idea to enquire about the following areas of insurance:

• Public liability insurance

• Employers’ liability insurance

• Tools and equipment cover

• Personal accident insurance

• Professional indemnity insurance

Once you’ve settled on which types of insurance best suit your needs, your insurance provider will likely offer you a tailored electrician’s insurance policy, which should incorporate all the coverage you require together.

Having all your insurance needs under one policy often means you can make all your insurance payments in one go, rather than having to include multiple different insurance costs in your budget.

What is the difference between public liability insurance and employer’s liability insurance?

As the name implies, public liability insurance (PLI) is specifically directed towards protecting you and your employees against claims made by a third party. This could include clients, suppliers, or even members of the public.

Employers’ liability insurance (ELI), on the other hand, handles injuries and accident claims made against you by your current or previous employees if they were physically hurt while at work.

What this means is that, if you want to have all avenues of your business covered against unforeseen accidents and injuries, you will need to purchase both of these insurance options from your provider.

What does tools and equipment insurance cover?

Unrelated to accidents and injuries suffered in the workplace, tools and equipment insurance is dedicated to protecting your work gear against damage, loss, or theft while at home or on a job.

Any professional knows just how expensive some of the essential electrician tools can be to have replaced. Not to mention the potential costs of having to delay or postpone work while you replenish your tool supply, so it makes sense to purchase this type of cover.

Of course, you should speak in depth with your insurance provider to understand exactly what tool loss scenarios would be covered by your policy, as you may be able to get additional cover for your van on top of your work gear.

What is personal accident insurance?

Unlike personal liability insurance and employers’ liability insurance, personal accident insurance is specifically tailored towards providing you with cover against serious injury or death while working.

Given the potentially dangerous nature of electrician work, personal accident insurance is definitely one such policy worth investing in.

What is professional indemnity insurance?

Maintaining a good reputation for work and customer service is absolutely essential for any business when it comes to expanding your potential customer base. That’s why it's a good idea to invest in professional indemnity insurance.

Professional indemnity insurance is there to protect your reputation against any possible claims of negligence or breach of contract while working, providing you with an avenue of legal action to pursue should someone wrongly try to besmirch your name.

What does electrician’s insurance cover?

As mentioned above, what’s covered by your electrician’s insurance will depend on the level of coverage you have.

So, to give you a better insight as to why you might want certain types of insurance for your business, below are a few scenarios you might experience where insurance would help:

• If you damaged the paintwork or plaster of a property while installing an electric socket, you’d be liable to pay the repair cost. Public liability insurance will cover the costs of putting this right

• If your work vehicle or tools were stolen, motor insurance or equipment insurance would cover your losses

• If a member of the public injured themselves because your equipment created a hazard, public liability insurance would again cover you in this situation

• If a customer alleged that your electrical work did not meet the required safety standards, professional indemnity insurance would cover any associated costs

• If one of your employees tripped over a client’s rug and injured themselves at work, employers’ liability insurance would cover your legal fees and pay compensation on your behalf

• If you were hospitalised after suffering an electric shock and burns from live wire contact, personal accident insurance would replace your lost income to keep your business afloat

How much does electrical insurance cost?

As with any form of personal or business insurance, it’s difficult to provide a direct number that could represent your specific electrician insurance costs, as electrician insurance costs will vary based on the type of coverage you require, as well as several other factors.

These could include:

• The level of cover you require

• Whether you work with domestic or commercial electrics

• The amount of work you do

• If you employ workers and how many

• The location of your work

• Previous insurance claims

• The power of the electrical systems you install and maintain

For the best insurance prices, compare a variety of quotes covering your needs so you can choose the deal that’s right for you.

And if you want to save even more money on your insurance, then you should consider becoming a Checkatrade member as well.

Is it mandatory to have electrical contractor insurance?

As an electrician’s work involves a high level of risk, and faulty wiring and electrical systems can potentially be lethal, electrician’s insurance is almost always mandatory.

If you have people working under you, employer’s liability insurance is a legal requirement.

Other types of insurance, such as professional indemnity insurance, aren’t themselves a legal requirement but are recommended for electricians, as is tool equipment insurance, so that all your bases are covered.

And as an added bonus, by showing your customers that your electrician’s business is fully insured, you’ll automatically reassure them that they’re working with a professional company.

Save money on your insurance with Checkatrade

When you become a Checkatrade member, you get access to a wide range of benefits and savings. That includes a 20% discount on PLI. Log in to our Member's Area today and see our latest deals.

Getting the right business insurance also means considering the added flexibility of optional extra covers. Whether that be tools, vehicle, accident, income protection or cyber security, flexible insurance lets you insure every area of your business.

Hopefully, you should now have a better idea of what to look for when it comes to electrician insurance. You can find more electrician guides like this one over on our guides hub.

For example, you can read our article on how to start your own electrical business, if you want to learn more about all the other aspects that go into starting a trade business besides insurance. Or, there's our guide on SEO for electricians, which is ideal if you've set up a website for your electrical business and want more visitors.

Electrical insurance FAQs

Do electricians need professional indemnity insurance?

Although professional indemnity insurance is not a legal requirement, it’s a good idea for all electricians so that they have coverage against any false claims made against them that could harm their personal and business reputation.

How much is public liability insurance for electricians?

As with all forms of insurance, there is no set price for public liability insurance. Check our Member's Area for more information on our latest deals, including 20% off PLI.

What insurance do self-employed electricians need?

Regardless of whether you work on your own or if you employ other workers, looking to invest in the insurance we have discussed in this article will help you avoid unforeseen financial repercussions for your business.

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