What insurance does a self-employed electrician need?
When you work as an electrician, there are some inherent risks. That makes it particularly important to have the right insurance in place. However, it is not always easy to know what you need or why.
Do you need employers’ liability insurance?
You are legally required to have employers’ liability insurance if you employ anyone. This includes:
- part-time staff
- trainees
- apprentices
- friends helping for free
It can also include various sub-contractors you work with, if they are deemed to be ‘employees’ under the law.
You can be fined every day you don’t have appropriate insurance, so check with your insurance company if you’re not sure.
What does employers’ liability insurance cover?
It protects you if a current or former employee suffers an injury or develops an illness as a result of working for you.
Do you need public liability insurance?
Although you are not legally required to have it, this is one of the most important types of insurance for a self-employed electrician to consider.
You may find some of your larger clients insist you have it as part of your contract. Your trade association may also require you to have it as part of your membership.
Public Liability Insurance aims to cover the cost if someone brings a successful compensation claim against you for injury or damages.
Public Liability Insurance will ensure you are properly represented during legal proceedings and able to pay any order for damages and compensation.
What does public liability insurance cover?
Public liability insurance for electricians covers property damage claims or injuries to third parties such as a customer or a member of the public.
Whether it’s a live wire, an exposed socket, or tripping over cables, this covers electrical hazards that could injure you or a member of the public.
Do you need professional indemnity insurance?
While also not required by law, it’s important to have this if you offer any type of professional advice, e.g. relating to specifications or electrical design. It’s also a good idea if you handle client data.
What does professional indemnity insurance cover?
It protects you if you make a mistake or lose client data (e.g. if your computer records are hacked and client information is stolen). It also covers the cost of any damages payable to the client for losses they suffer or damage to their reputation.
Do you need to insure your tools?
If your tools are damaged or stolen, you can replace them quickly if they are insured. If you don’t have insurance, you may be unable to work just at the time when you need to earn more to pay for replacements.
Is there any other insurance you need?
There may be additional types of insurance you require, depending on your circumstances. If you are in any doubt, check with an insurer that has experience of providing insurance for electricians.