Insurance for Electrical Contractors

What is electrical contractors’ Insurance?

Insurance for electrical contractors is designed to protect your business and the work you carry out in this sector. It will often bring together a combination of insurance covers that are essential for electrical contractors with the optional extras available.

There are certain types of insurance that you must have:

• Public liability insurance – designed to protect your business against the cost of personal injury to third parties or property damage claims made by your clients or members of the public for damage to their property.
• Professional indemnity insurance – can help protect your business with allegations such as professional negligence.
• Employers ‘liability insurance – covers the legal and compensation costs if an employee, or anyone else working for you, claims that they were injured or fell ill due to a work-related cause. If you trade as a limited company and have two or more people employed by the business, then you are required by law to have employers’ liability cover. This applies even if one of your employees is your company secretary.

Common risks faced by electrical contractors

NAPIT Insurance understands the risks you face as an electrical contractor.

As an electrician, you’re working in a potentially high-risk environment where the impact of something going wrong can be huge. If things don’t go according to plan and the advice you give or work you carry out can cause damage or loss to your client. This can be physical, financial and can damage your reputation, putting the future of your business at risk. This is why professional indemnity insurance is vital for electrical contractors.

Tool theft is one of the most frequent insurance claims made by electrical contractors.  How can you work without the tools of your trade? You can add tool insurance to your NAPIT policy to provide cover for your equipment 24/7. This includes whether your tools are in a vehicle or in a building.

Accident or injury – whilst your daily life as an electrician isn’t without it’s own specific risks, it may seem unlikely that you could have an accident that prevents you working. But what about your life outside of your working day? Playing football, enjoying outdoor activities, DIY jobs – or even just walking to the shops could result in something happening that means you’re out of action. Personal accident cover can protect your income if you suffer an injury and can’t work. Here’s how it helped one NAPIT member pay their bills for three months. Can you afford to be without personal accident cover?

Contract works – If you’re working on a job, what happens if your materials are damaged or stolen? Could you afford to replace them so that you can complete the job? Contracts work cover provides financial protection against the unexpected and is particularly important for larger jobs when materials could be held on site for a period of time.

Cyber attacks – you might not think this is relevant to your business. But if you use technology to manage your business – even something as simple as electronic banking or very real exposure to cyber risk.