What insurance do I need as a sole trader electrician?

If you’re working as an electrician, you probably already know that you need insurance but what insurance do you need as a sole trader electrician? In this post, we take a closer look.

Do I really need insurance?

Yes sole traders should still have appropriate insurance in place. In fact, it’s almost more of an issue for sole traders than any other type of business because you do not have limited liability. What this means is that if you are sued by someone and you can’t pay the damages and legal fees, then because you don’t have limited liability your personal assets could be at risk not just your business assets.

What insurance do I need as a sole trader?

There are several different types of insurance you will need to consider. These include Public Liability Insurance, Employers’ Liability Insurance, Professional Indemnity Insurance, and insurance of your tools.

Surely I don’t need Employers’ Liability Insurance as a sole trader?

Yes, you will need Employers’ Liability Insurance even if you are a sole trader if you employ anyone.

This includes trainees, friends helping out, an apprentice and part-time staff, Employers’ Liability Insurance is a legal requirement. In fact you can be fined if you don’t have it. Employers’ Liability Insurance protects you if something happens and as a result an employee or trainee suffers harm such as an injury or illness.

What is Public Liability Insurance and why do I need it?

Public Liability Insurance protects you and your business if something you do causes injury to someone or damage to property. This could be a member of the public passing a site you’re working on, or a client who gets an electric shock from something you’ve installed.

Imagine for a moment, that faulty wiring starts a fire in a building. The property owner suffers burns as they get out and the building itself suffers major damage, so much so that the owner has to move out while it’s repaired and rebuilt. If you are at fault, you may have to pay damages to cover the owner’s time off work and any medical treatment or equipment, the cost of alternative accommodation, the cost of repairs and the legal fees.

It’s easy to see how this could amount to a very large amount of money and without insurance, you will have to pay these.

What is Professional Indemnity Insurance and why do I need it?

Professional Indemnity Insurance provides protection in respect of any professional advice you give which turns out to be negligent and causes damage. This could be about design or specifications, and it is another important type of insurance to consider.

Do I really need to insure my tools?

This is another really important type of insurance to consider because if your tools are damaged or stolen you may not be able to work. And without insurance you’ll have to pay to replace those tools from your own pocket. But by having insurance in place, you can be confident that if the worse does happen, you will be able to quickly replace your tools and get back to work.