One of the trades most commonly required to hold public liability insurance are electricians.
Whilst public liability is important for many different trades, electricians are commonly required to hold cover for their licence.
In this guide we’ll take a closer look at the cover, and specifically what is required for your insurance in each state.
What is it?
Public liability insurance is designed to protect you and your business in the event of negligence which results in property damage or personal injury to another person.
For an electrician there are various scenarios which could trigger a claim under public liability insurance.
At the lower end of the scale, it could be a case where you have caused $1,000 worth of damage to someone’s house whilst working there.
At the top end of the scale it could be that your negligence has resulted in a person suffering electrocution or a property being lost to fire.
In any of these events you or your business could expect to be sued for damages. This is where your public liability insurance would respond.
Even if the courts find that you were not actually responsible for the damage or injury, your public liability policy can cover the significant legal fees which would be incurred up to that point.
Do I need to have it?
In our option every electrical contractor needs to have public liability insurance, but by law only certain states actually legislate insurance requirements.
The below list contains the insurance requirements for all Australian states and territories:
Queensland
Licensed electrical contractors in Qld have special requirements that differ from all other Australian states.
In order to apply for or renew a licence, an electrician must hold the following:
- $5,000,000 public liability insurance (broadform liability)
- $50,000 consumer protection insurance
Only certain insurers provide a policy which meets the Qld requirements. Trade Risk have access to all of these insurers and can issue the necessary certificate of currency.
Useful links:
- WorkCover Qld – Electrical Contract Licences
- Queensland Electrical Contractor Insurance Requirements
New South Wales
There are no set requirements for NSW, however it is recommended that a public liability policy of at least $5 million is held.
Victoria
If you are a Registered Electrical Contractor (REC) in Victoria you will require the following:
- $5,000,000 civil liability insurance
For people who wish to maintain their registration whilst they are not trading, it is possible to gain an exemption so that you do not need to hold insurance.
Useful links:
South Australia
There are no set requirements for South Australian electricians, however it is recommended that public liability cover of at least $5 million is held.
Western Australia
There are no set requirements for electricians in WA, however it is recommended that a public liability policy of at least $5 million is held.
Tasmania
Electricians applying for or renewing a contractor licence in Tasmania must hold the following:
- $5,000,000 public liability insurance
Useful links:
Northern Territory
The Electrical Workers and Contractors Licensing Board in NT have no set insurance requirements, however it recommended that public liability insurance still held.
ACT
There are no set insurance requirements to hold an electrician licence in the ACT, however it is recommended that a public liability policy of at least $5 million is held.
Please note that the information above was only current at the time of publication.
We strongly recommend contacting your state licensing
authority to check the latest insurance requirements.
Ultimately, we recommend that all electrical contractors protect themselves with insurance regardless of the state requirements.
How much does it cost?
The cost of public liability insurance for an electrician is relatively low, especially if you’re a sole trader working on residential and light commercial jobs.
In this case cover can be had from as little as $420 per annum, or around $40 per month.
The cost is a little higher for Qld electricians due to their special requirements.
If you are undertaking heavy commercial or industrial work, or anything to do with power generation or transition lines, the cost will be higher to reflect the higher risk.
For electricians involved in residential and light commercial we can provide you with an instant quote on your insurance.
Simply click here to visit our online quote page and we’ll be able to give you an instant quote, along with the ability to buy your cover online.
If you’re undertaking any other types of electrical work we recommend giving our team a call and we can tailor a quote and policy to your specific business needs.
Here at Trade Risk we assist almost one thousand electricians from around Australia with their insurance needs.
Electricians are one of our main specialties and we’d love to help you to save some money on your public liability whilst also getting the right cover for your needs.
