Electricians Insurance

As an electrical contractor there are a few different insurance types you should consider.

Some of these may be mandatory for an electrician, whilst others are simply a great form of protection.

In terms of mandatory requirements, this will depend greatly on which state (or states) you are licensed in, as well as which sites you are working on.

In this guide we’ll take a look at the most commonly forms of electricians insurance required by contractors.

Public Liability Insurance

This is the big one for electricians, and any contractors in the building industry for that matter.

Public liability should be considered vital for any electrical contractor, and may in fact be mandatory in your state in order to obtain a licence.

We strongly recommend checking with your local authority, but at the time of writing here are the current requirements for each state:

Queensland:

Minimum $5 million public liability required, and must include $50k consumer protection cover.

Given the unique requirements, we have a specific guide for Qld electrical contractor insurance.

Victoria, Western Australia and Tasmania:

Minimum $5 million public liability required.

New South Wales, South Australia & Northern Territory:

No requirements.

ACT:

Proof of insurance is not required to obtain the licence, but it must be provided to the contractor’s clients if requested.

Although some states do not require that electricians hold public liability to obtain their contractors licence, this doesn’t mean it is not required at all.

Many builders and worksites will have their own rules requiring that all contractors and subcontractors have their own public liability insurance before being allowed on site.

The same is true if you are doing maintenance work for real estate or property managers, who will require proof of your public liability insurance before giving you any work.

Even if your state or your clients don’t have any mandatory insurance requirements, public liability is still a hugely important form of cover.

If your work results in property damage or personal injury to a third party, public liability is the insurance that is going to save you a potentially massive sum of money.

You can learn more about this important form of cover by visiting our comprehensive public liability insurance guide.

Income Protection Insurance

Trade Risk does not deal with income protection insurance, but because it is such an important form of cover we do have referral partners who specialise in this area.

Whilst income protection is never a licence requirement, it can be a requirement for certain building companies and work sites.

If you are contracting to a company, or working on a site, that has such a requirement, you will need to hold an income protection insurance policy.

Even if it’s not a mandatory requirement, income protection should be considered vital for any self-employed tradie.

Without sick leave or workers compensation in most cases, a self-employed electrician could find themselves in serious financial difficulty if they couldn’t work for a period of time.

Income protection can replace a large portion of your income in the event that you are unable to work for a period of time due to injury or illness.

In addition to the cover specifically referred to as income protection that is dealt with by a financial adviser, there is also accident and illness insurance that is dealt with by brokers.

Broadly speaking, an accident and illness insurance policy is very similar to an income protection policy, but the later will generally be more comprehensive in cover.

An accident and illness policy will generally be sufficient in terms of satisfying any income protection requirements that a certain builder or work site has.

Contract Works Insurance

Contract works insurance is not required for any licence, but it may be a requirement if you are taking on larger contracts.

Power Generator

If it is required, generally the contract you are signing will stipulate exactly what is needed.

Even if the contract does not require that you hold contract works cover, it is still a very important form of insurance to protect your business.

Broadly speaking, contract works insurance is going to cover you for losses that are not due to your negligence, but you are still responsible for contractually.

This is differs to public liability insurance, which only covers you where you have been negligent.

For more information we recommend speaking with one of our brokers or checking out our contract works insurance guide.

Tool Insurance

Tool insurance is never a mandatory requirement for licensing or to enter certain worksites, but it is very important for all electricians and tradies.

Sadly, tool theft is rampant in Australia and the results can be devastating.

Not only is there the cost of replacing thousands of dollars’ worth of gear, but also the potential loss of income whilst you are unable to work without your tools.

Stolen Tools

Tool insurance can’t stop your gear from being stolen, but it can cover the costs of replacing your tools and equipment.

Here at Trade Risk, claims for stolen tools are our most common claim.  This is despite it not being one of our most common forms of insurance.

Whilst it’s not mandatory, we consider it to be just as vital as public liability and income protection.

Other Insurance Types

There are other forms of business insurance for electricians, but the four we have covered in this guide are generally the most important.

One we have missed is workers compensation insurance, however this was deliberately left out due to being a government regulated insurance in most states.

The best option for an electrical contractor is to speak with a specialist insurance broker such as Trade Risk.

We insure over 3,000 tradies from all over Australia, and we know what you do and don’t need as a self-employed electrician.

For more information please get in touch with us.

Electrical contractors insurance guide