Earlier this year our Annual Client Survey revealed that our clients wanted to know more about claims affecting their trade.
We listened, and now we present our first such update. Below you’ll see a selection of claims that have been paid for our electrician clients during 2019.
To be clear, these are claims that have been successfully settled and paid, not just lodged.
We’ve selected a range of claims from different policy types and different sizes, to give a broad view of the types of claims affecting electrical businesses.
Switchboard Damage
Amount Paid: $23,000
Policy: Public Liability Insurance
A switchboard owned by a company that our client was subcontracting to was damaged whilst being moved by our client.
The damage was found to be caused by our client, and the costs were covered by their public liability insurance.
Damage to Tools
Amount Paid: $5,500
Policy: Tool Insurance
Our client suffered a vehicle accident which resulted in damage to both the vehicle and the tools stored within the vehicle and trailer.
We only provided insurance for the tools, not the vehicle, and the insurer covered the costs for replacing the damaged tools.
Importantly in this case, tool insurance covers your gear not just for theft, but also for damage resulting from a vehicle collision or rollover.
Water Damage
Amount Paid: $8,000
Policy: Public Liability Insurance
Damage was caused to roofing sheets during the installation of solar panels, which resulted in water damage within the premises.
Our client was found to be liable and the insurer covered the costs.
Stolen Tools
Amount Paid: $15,000
Policy: Tool Insurance
Our client had three of their vehicles broken into and tools stolen.
The insurer paid for the replacement of the tools and equipment.
Vehicle Damage
Amount Paid: $3,000
Policy: Commercial Vehicle Insurance
A third-party reversed into our client’s vehicle whilst in a hire yard. The vehicle was insured via us, and the insurer covered the repair costs including new sign-writing.
Whilst the claim was paid, initially the insurer advised that our client would have to pay their excess. This is because both vehicles were reversing, and the industry standard is that if both parties are reversing, they have both contributed to the accident.
The client’s account manager at Trade Risk argued that our client should not have to pay the excess, and after being escalated we were able to have the excess waived, which was a fantastic win for our client.
Water Damage
Amount Paid: $2,200
Policy: Public Liability Insurance
A roof tile was cracked whilst our client was installing solar panels. During the next rain event water was able to enter the property, resulting in water damage.
As our client held public liability insurance, the insurer covered the costs involved in the claim.
Water Damage
Amount Paid: $2,000
Policy: Public Liability Insurance
A roof tile was not replaced after our client undertook work on a third-party’s property. At the next rain event, water was able to enter the property and cause damage.
The third-party’s fridge and another appliance were damaged, and our client’s public liability insurance provider covered the costs for replacement items.
Damage to Ceiling
Amount Paid: $1,500
Policy: Public Liability Insurance
Our client was undertaking work in a McDonalds restaurant. Too much weight was put on their ceiling, causing damage around the manhole.
The public liability insurance held by our client covered the repair costs.
Property Damage – Splashback
Amount Paid: $1,300
Policy: Public Liability Insurance
Our client was installing a rangehood in a new kitchen, and in the process scratched the splash back.
The scratches were too deep to repair, and our client’s public liability insurance covered the cost of replacing the splashback.
Deterioration of Food
Amount Paid: $1,100
Policy: Public Liability Insurance
After installing a new power point at a third-party’s property, our client failed to turn the power back on. This resulted in the fridge and freezer defrosting, and the loss of all food due to deterioration.
Our client’s public liability insurance covered the costs claimed by the third party.
We love helping our clients with their insurance needs, and whilst we’d never wish a claim upon anyone, it is the time when we really get to show our value.
Many of the claims listed above aren’t life changing amounts for an electrician, but having to pull $5k, $10k, or $20k out of your pocket for no return is always going to hurt.
Whilst some of the claims listed above were from large clients with premiums well into the thousands, some where from clients whose insurance cost was barely $50 a month. That’s pretty good value in our opinion!
