Electrician’s Insurance: What You Should Know If You Have a Business

Over the course of history, humanity has created a range of jobs to address people's needs. While some jobs have been relegated to the past, as we no longer need them, some jobs have always been — and will always be — in high demand. This is common with trades jobs such as electrical work. Research on South African occupational skills shortages[1] shows that the country will always need trained and skilled artisans to meet ongoing demand. If you work as an artisan, it’s likely that business is booming for you — but that's no guarantee it will remain so in the future should anything unexpected occur. 

Keep reading to find out what risks can accompany work done by electricians and how electrician's insurance from Budget Insurance can help you navigate these risks. 

What is electrician’s insurance, and who needs it?

As an electrician, you can provide clients with all types of electrical services, from installing outlets, fixtures and appliances to rewiring entire buildings and issuing safety compliance certificates. These services are accompanied by various levels of risk, which usually have higher stakes than those faced by many other professionals. After all, an electrician is more likely to encounter accidental injury or damage on the job than a writer, interior designer or psychologist. 

Electrician's insurance is a customised form of coverage created to address electricians' unique risks on the job. It recognises that even the most experienced and skilled electrician can encounter risk on the job and gives them peace of mind that should it happen, they'll be protected financially. Anyone who works with electrical systems will benefit from this form of insurance.

The importance of electrical insurance 

An electrician's work is instrumental in how a building or room functions. If done incorrectly, tasks like rewiring or panelling can render a space unusable and unsafe. Customers know that poor quality work can cause damage and injury and void their personal property insurance claims. It is why customers carefully vet electricians before hiring them and why electrical certificates of compliance and inspection are highly regarded. 

Apart from general electrical services, such as repair and installation, other services that carry major risks for an electrician include high-voltage and low-voltage work, fibre optics, electrical controls and automation and lighting. 

Electrician’s insurance is important for electricians and their employees. Even common household electrical work, such as installing a ceiling fan, can involve an electrician working at height in confined spaces or hazardous conditions. Should someone get hurt or damage something, you could find your business facing legal action or heavy fines.

If you own a business, discover why Business insurance is essential for small business owners. 

What does electrician’s insurance cover? 

Electrician's insurance falls under tradesmen's insurance — this coverage is usually adjusted according to the unique characteristics of your business. Insurers usually help companies develop a portfolio of different insurance products to meet their needs. This can include protecting any assets the business has, protecting the business against times when it can't earn an income due to external circumstances and protecting the business against claims made against it or its employees. The larger your business, the more coverage you may need.

For example, imagine that Tina has recently completed training to become an electrician and an apprenticeship. She currently does basic electrical jobs part-time. Apart from a basic toolkit, she doesn't have much complex equipment and works alone. She chooses professional indemnity insurance and electrician public liability insurance from Budget Insurance. The former is necessary to include in her electrical contractor’s insurance as she occasionally offers clients advice they can act on that (if she makes a mistake) they could later sue her for.  For example, she may assess an installation as not needing replacement, only to have it malfunction later, damaging other systems in the same electrical network. Public liability insurance is necessary as she will come into contact with other people and their homes, bringing a risk (albeit a small one) of accidental death or damage. 

Another example is Raj, an electrician who specialises in retail electrical work. He's built up his business over the years. He now has a crew of five other professionals working for him, as well as three company vehicles and complex equipment such as voltage testers and thermal imaging equipment. Because of this, he selects public liability and professional indemnity insurance when creating his electrical insurance coverage — but he also opts for commercial vehicle insurance and business interruption insurance so that all his needs are accounted for. 

Raj knows that should he be unable to operate the business for a period of time; he will have the funds to continue honouring his monthly financial obligations such as rent and salaries. He also knows that should one of his cars break down or get written off, he will be able to repair it or purchase a new one without having to dip into the company's savings. 

How to choose the right electrician’s insurance for your business

Only an authorised representative of an insurance company can give you an accurate insurance quote and what one insurer’s charges might differ from another. To get an idea of what your coverage will look like and cost, you can consider these things:

• The level of risk your business faces

• Its financial well-being

• How fluid your cash flow is

Limited cash resources or savings can mean you should opt for more comprehensive coverage, so you pay less out of pocket when making a claim. Additionally, the riskier or more dangerous your specialisation is, the more you can expect to pay and the more specialised coverage you will need. A highway system electrician can expect to pay more for insurance than one specialising in equipment testing and maintenance. 

Consult a professional insurance broker. Once you have assessed your needs and risks and spoken with the broker, you can review the insurance policy options and decide to suit your unique requirements best. Remember that it is wise to update and renew your policy regularly.

Get electrician’s insurance with Budget Insurance 

Getting the level of coverage your business will benefit from can be tricky, which is why you should request a quote from an insurer that's willing to focus on your business's unique needs and take you through your options. If you aren't happy with your current electrician's insurance, want to insure your business for the first time, or have questions about public liability for electricians or professional indemnity for electricians, request an obligation-free online quote from Budget Insurance today.