What is electrical contractor’s insurance?
Electrical contractor’s insurance generally refers to the public liability insurance required for your electrical contractor licence.
In most states of Australia public liability is mandatory for electricians, and either way, it’s a very important form of cover for sparkies.
Given the risks involved in working with something that can electrocute you and others, being properly insured is a must!
Other recommended forms of insurance for self-employed electricians include tool insurance and income protection, but for the purposes of this guide we’ll stick with public liability.
If you’re simply interested in a quote or would prefer to speak with a broker, please get in touch with us. Otherwise please read on…
What does this insurance cover?
Public liability insurance will protect an electrical contractor in the event that their negligence results in property damage or personal injury to another person.
If you are found to be responsible for damage or injury as a result of negligence, you will generally be responsible for any costs involved.
This could be as simple as the cost of repairing a ceiling that you accidentally put your foot through whilst working in the ceiling cavity.
At the other end of the spectrum we have serious injury or death suffered by a third party.
In this case you could be up for many thousands, and potentially millions if you work results in the death of one or more people.
It’s not nice to think about, but it can happen, and it’s vital that such an event doesn’t result in you losing the family home or going bankrupt.
By having the right public liability insurance in place, you can be protected again such claims with cover amounts available from $5 million up to $20 million.
Working with electricity leaves you, your clients and the general public at a relatively high risk, but insurance can help manage this risk.
Electrician insurance cost
Despite the high level of protection provided by electrical contractor’s insurance, the costs of the cover is relatively low.
For a typical residential electrician working as a sole trader or single-worker Pty Ltd company, the cost for $5 million cover stars from as low as $400.
Even if you bump up your cover to the maximum $20 million available, we’re still talking about premiums under $500 per year.
The price will increase as you increase your level of cover, and also as the size of your business increases in terms of staff numbers and revenue.
Also affecting the cost of your insurance can be any high risk activities or hazardous locations you work at.
For example if you undertake electrical contracting work at areas such as airports or mines, the cost of the cover will increase in line with the increased risk.
The costs are slightly higher for licensed electrical contractors in Queensland due to a special type of insurance required, which we’ll talk about below.
If cashflow is a concern (which it is for most contractors in the building industry) you can also pay for your insurance monthly or even weekly.
It will cost a little more overall to pay monthly or weekly, however the cashflow benefits can outweigh the extra cost for many sparkies.
Qld electrical contractors
In Queensland the Electrical Safety Office has put in place extra requirements when it comes to insurance.
In addition to requiring public liability insurance, electricians must also hold consumer protection insurance.
This isn’t a separate policy, but instead is included as an option on your public liability.
Here are Trade Risk we’re very familiar with the requirements, and will always include the option when we’re dealing with a Qld licensed electrical contractor.
If you’re not using Trade Risk as your broker, make sure you double check that your current broker or insurer is including the special option for you.
If they don’t, the Electrical Safety Office will decline your licence application!
Quotes and more information
Because Trade Risk deals with so many electricians and other tradies, we have a special scheme in place which allows you to obtain an instant quote.
If you’re happy with the quote, you can purchase the policy online and have the certificate of currency emailed to you with seconds!
If you’d prefer to deal with a real person we can help you there too. By calling 1800 808 800 you can speak with one of our qualified insurance brokers who can answer all of your questions.
Although this guide has dealt with public liability as the main form of electrical contractor’s insurance, we can assist you with other forms of insurance.
We can provide quotes and cover for tool insurance and commercial vehicle insurance for tradies, and we can also refer you to one of our partners who can assist with income protection.
We hope this guide has answered your question on what electrical contractors insurance is, and if you have any other questions please get in touch with us.