Insurance for electricians
What cover could an electrician benefit from and how might it protect their business?
As an electrician, it’s likely that your business is exposed to a number of risks every day. As such, you will probably want to protect against these risks by taking out comprehensive electricians business insurance. Not having the correct cover in place could leave your business financially vulnerable should you be deemed responsible for causing damage or loss to a third party – be it physical damage, personal injury, material damage or financial loss.
Strictly speaking, electricians insurance, or electrical engineer insurance, isn't a type of insurance in its own right. Rather, it's a term used to refer to a collection of policies that a grouped together into a insurance package suitable for an electrician.
There are a number of different insurance policies that could provide relevant and beneficial protection for your business, but ultimately, the types of cover you decide to take out will depend on your business’s individual circumstances.
It’s essential that you identify and protect against the risks that have the potential to leave your business vulnerable. Some of the policies you may want to consider taking out include:
- Public liability insurance:
Public liability insurance for electricians can provide you with financial assistance if you are deemed responsible for causing injury to a member of the public, or damage to their property. As an example, if you made a mistake when installing a light switch, and someone suffered an electric shock as a result, you could be held liable for any injury caused. A public liability policy could provide you with funding for a legal defence and compensation that may have to be paid as a result.
- Employers' liability insurance:
This policy can protect you if your business is considered responsible for an employee suffering injury or illness through carrying out their working duties. A successful claim on your employers’ liability cover could provide you with funding for a legal defence and compensation. It’s worth noting that most businesses are legally required to have this cover in place if they employ workers, which can include apprentices, volunteers, and subcontractors.
For more information on what employer's liability can cover, click the link.
- Contents insurance:
This policy is particularly pertinent for electricians, as it can include cover for tools, portable equipment and goods in transit. As an electrician, it’s likely that you regularly rely on specialist tools or equipment to carry out your work. If these items were lost, damaged or stolen, it could have a huge impact on your ability to work, and your business overall.
- Business interruption insurance:
If your business is unexpectedly unable to operate at full capacity, it could have huge financial implications. For example, if a portion of your business’s income relies on one major client, and that client was unable to pay you, your business could suffer as a result.
In this situation, a successful claim on your business interruption insurance could compensate you for the financial loss suffered. This policy can also offer cover in situations where supplier failure or unexpected damage – such as that caused by a flood or fire – leads to you losing business.
How much does electricians insurance cost?
It’s difficult to put a price on an electrician’s insurance package without individual analysis of that particular business’s circumstances, and the threats that it is vulnerable to. As mentioned before, you should take out the insurance that is relevant to your business.
Ultimately, the policies and extent of cover that you choose will influence the price of electricians insurance, as well as factors such as:
- The size of your business
- The amount of money you make
- The scale of the jobs you perform
- The number of employees you have
- The level of experience of you and your employees.
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