Small Business Insurance for Electricians
As an electrician your insurance cover is important as electrical work involves a number of risks.
An electrician has to work with electric wires, power transmitters and transformers so fire, damaging third party property or injuring the public through your activities are all risks.
Whether you are a self-employed, sole trader or contractor electrician , if you are one of the 35,200 electrician businesses in Australia ( according to statistics from IBIS world), it's important you get suitable and affordable electricians insurance to protect yourself and your business from potential claims that may arise from your work activities.
A suitable electrical business insurance policy may protect your business against losses from material damage, property damage and injury to people.
Risks for electrician small business owners
Since electricians work with electric wires, power transmitters and transformers the risk of fire and property damage are very high.
Work in occupied buildings creates the highest risk for electricians and increases the chances of damage to third party property.
Electrical contractors are subject to very high-risk “complete operations exposure”, which includes damage from faulty wiring or failure of some or all of electrical and power system to work.
Electricians may even be responsible for the repair of work done by other trades that need to be repairers or replaced if the electrical works is part of the cause.
Damage to public property and injury to people on the work site are some of the risks you and your electrical business face.
Property, vehicles, machines, tools and equipment being used on site may be damaged due to accidents.
Risks electrical small business owners are exposed to from their work activities include:
- damage to someone else's property from your electrical work activities
- damage or loss/theft of your property such as tools
- harm to yourself, an employee, sub-contractor or someone else, slips and falls, inexperience , power equipment , sharp tools, materials, fire and liability hazards on site.
- machinery and engineering: Business interruption due to the breakdown of machinery, tools and equipment; and the possibility of theft.
Material Damage: Larger electrical contractors with offices face the constant risk of safeguarding their office premise, workshops and storage houses against electrical fires, theft, employee/worker infidelity, etc.
Types of insurance cover for electrician business owners to consider :
- Public liability insurance – may protect electricians against claims from harm to other people or their property caused from your work activities ; work at site including unauthorized access, attractive nuisance, liability for sub-contractors, vicarious liability for sub-contractors, interruption of third party business (because of an interrupted electricity and power supply.)
- Product liability - may protect an electrician when products you have supplied, repaired or manufactured cause harm, injure someone or cause property damage. ( for example: faulty installation or wiring ).
- General property insurance – may cover damage or loss to and business equipment such as tools, mobiles , computers , power equipment , or stock such as power boards, lighting or accessories.
- Business insurance pack – you may be able to combine multiple covers in a specially designed policy for a small electrical business. Ask your SMART broker for details.
- Workers compensation – cover for employees. Electrical work is risky for employees undertaking it. Employees may receive injuries due to work pressure and constantly changing work sites. Injuries may result from burns, cuts , slips and falls, burns, standing for long hours, stooping and kneeling.
- Marine cargo – cover if you receive or send goods such as building materials via post or freight.
- Contract Works Insurance : An electrical business may also require Specialist Contract Works Insurance in relation to construction projects depending on contract terms if the insured is the main contractor on site.
- Professional indemnity – if you provide professional advice or a fee; or erroneous designs, specification, contract administration and project management
- Commercial motor –may cover any vehicle - car, van, light truck - that you own and use mainly for business
- Income Protection – to protect your personal income if you can't work for an extended period
- Life Insurance – to protect your family
Trying to work out what insurance your electrical business needs?
Sometimes a sole trader or contractor electrician may choose only a single or two insurance product.
Small electrical businesses may need a combination of one or more insurance policies.
We may be able to assist.
Wherever you are in Australia when you contact SMART business insurance, your friendly business insurance broker may be able to help answer your questions and find you suitable and affordable insurance for your electrical business.
Talk to a SMART business insurance specialist on 130 542 573 to discuss electricians business insurance cover TODAY.
1300 542 573
TALK to a SMART Business Insurance adviser
Monday – Friday 8.45 am - 6.00 pm AEST
SMART business insurance pro tip:
Disclose ALL of your work activities to your insurance broker no matter how infrequently you perform that type of work. Are your activities restricted to electrical work or are you undertaking broader building activities ? Insurance policies are priced according to risk. Failure to disclose any type of work you perform means you will not be covered if an incident occurs while undertaking an undisclosed work activity.
How much will suitable electricians insurance cost?
So, how much will electricians insurance cost you?
The core insurance for self-employed electrician in Australia is 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 the insurance policy and company will respond as intended when there is a claim.
For electricians that:
- undertake broader building work
- have employees,
- are looking for costs and quotes on other covers you may need; such as product liability, business insurance pack, general property, commercial motor, or any of those above please TALK to a friendly SMART business insurance broker who may be able to assist.
Electrician Insurance Broker quotes
TALK to a SMART Business Insurance broker on 1300 542 573 or email us at email@example.com for suitable and affordable insurance quotes for your electrical business.
I am an electrician AND a sole trader. Does workers compensation cover me?
No. If you are an electrician that is also a sole trader workers compensation will NOT cover you. Workers compensation provides cover for your employees. As a electrician that is a sole trader you may require income protection or personal accident insurance. Note: Sole traders may have up to 20 employees.
I'm an electrician , what does public liability insurance cover me for ?
As an electrician, public liability insurance may cover you for damage you cause to a third parties person or property.
For example, if in the course of your electrical works, you damage part of your clients' home or building , cause some damage to a neighbouring property, or inflict personal harm on your client, visitors, neighbours or passers-by , public liability insurance may cover you. In the most serious cases, public liability insurance may cover you where your electrical business activities result in the death of a person.
Public liability insurance may also be able to assist with paying damages and/or legal fees for any claims made against you as a result of your electrical business activities. There are many instances of claims made against electricians that are sole traders, contractors and small businesses who did not think they were at fault.