How much does electricians’ insurance cost?

Insurance is an essential consideration for an electrician’s business. Understanding how much a premium will be is therefore an important part of managing overall business costs.

What electricians’ insurance do I need?

The different types of insurance required depend on the precise nature of the work you do, and how you do it.

The main types of insurance you may need include:

• public and product liability insurance 
• professional indemnity insurance 
• insurance for your tools 
• employers’ liability insurance (if you employ anyone).

There may also be other types of insurance you need, e.g. for your van, hired equipment or premises. You should speak to your insurer about these if you are unsure.

How much cover do I need?

Again, the amount of cover you need may vary.

To provide a rough idea, if you employ anyone, you will need employers’ liability insurance. This is a legal requirement.

You may also need public liability insurance, where cover starts at £1 million and rises to £10 million in cover

The amount of cover you need for professional indemnity insurance depends on the type of advice you are giving and you should seek guidance on this.

You should consider tool insurance where cover levels start at £1000.

How is the cost of my insurance calculated?

Your insurance company will consider several factors, including:

• the amount of cover you need 
• the type of work you do, as some projects are seen as a greater risk.

What other factors are considered?

The insurer will look at how your business is structured and how large your business is. For example, insurance for a limited company will likely be a little more than for a sole trader.

Similarly, if you have a team of 10 employees your premium will be higher than for someone who is self-employed and works on their own.

Your previous claims history will also be considered. If you have had to claim on your insurance a few times already, your premium will go up.

Finally, your insurer may look at where you operate, as some areas may be seen as a greater risk.

So what does electricians’ insurance cost?

The actual cost varies depending on your own unique circumstances.