What insurance does an electrician need?

If you are an electrician, you need to consider insurance covers. It’s therefore helpful to be aware of the different levels and types of insurance available.

Must I have insurance?

If you employ anyone (even part-time or as a trainee) you are legally required to have employers’ liability insurance. This sometimes also applies if sub-contractors work for you. You can be fined if you don’t have cover.

Employers’ liability is designed to protect you if a current or former employee successfully sues you for an injury or illness sustained while working for you. 
You will also need to consider other types of insurance (such as public liability) to work with some larger clients and public sector organisations. They might not contract with you if you don’t have it.

Your trade association or professional body may also require you to have other insurance covers.

Why do I need insurance?

If something goes wrong, and you or your business are found to be at fault, you could be ordered by a court to pay damages. It is not uncommon for these damages to amount to hundreds of thousands of pounds, by way of compensation, damages, and legal fees.

Without insurance you must pay for your own legal representation, or conduct any legal proceedings yourself. It isn’t just stressful; it can take up a lot of your time – which you should be using to run your business.

What types of insurance do I need?

In addition to employers’ liability, you may also need:

• public liability
• product liability
• professional indemnity
• tools insurance

Public liability is designed to protect you and your business if something you or your employees do (or fail to do) causes injury to a customer or member of the public, or damages their property.

Product liability is designed to cover you if a product you supply or install (e.g. a smoke alarm) causes injury or damage.

Professional indemnity is designed to protect you in the event you provide design or operational advice that is negligent, resulting in a financial loss for your client.

Your tools and van are obviously vital, so you should consider insuring them against theft, damage, or loss.

How do I get full electricians’ insurance?

Choose a reputable insurance company with experience of serving tradespeople and the construction industry. They should provide you with a quote for comprehensive coverage.

When estimating your premium, the insurance provider will consider several factors, including the size of your business and the nature of the work you do.