What is public liability insurance for electricians?

If you are an electrician, you will be aware that you need proper insurance. However, you may also have heard about different types of insurance for electricians. This can be confusing, but it’s important to know what they are and why you need them.

In this video, part of our Public Liability FAQ series, we answer the question ‘What is public liability insurance for electricians?’.

What is public liability insurance?

Public liability insurance covers situations where something your business does causes damage to someone else’s property or injures someone. That could be a client or a member of the public.

Damage or injuries can range from something very small, like a minor burn, to something catastrophic, such as fire or death.

Do I need public liability insurance?

Although there is no law that requires you to have it, many clients will insist you do before they work with you. You may also find that your trade association insists you have cover as a member.

Even small accidents can result in a large claim against you for damages, and working with electricity always carries an increased element of risk.

If you are successfully sued for damage or injury caused to a third party, and you don’t have insurance, you could face a large bill for damages and legal fees. If you cannot pay, your business will be at risk.

Does it make a difference whether I work as a limited company or not?

It doesn’t matter whether you operate as a limited company, partnership, or sole trader – you should always consider public liability insurance.

How much cover do I need?

This will vary between businesses and will depend on several factors. These include the types of projects you accept and the clients you work with.

Some clients, including public sector organisations, may insist you have public liability cover of at least £5 million. Many public liability insurance policies for small businesses in the construction industry start with £1 million in cover, rising to £10 million at the higher end.

How much will public liability insurance cost?

This also varies. It will depend on:

• how your business is set up (limited company, sole trader, etc.)
• the sort of work you do
• how many employees you have
• the area you work in
• your previous claims record