Insurance Cover Is a Professional Responsibility
Adequate insurance cover protects your financial security when you work in the contracting industry. Electricians understand the important of safeguards when working with electricity, but your financial security also deserves a high level of protection. Electrical accidents, damages from minor mistakes, or unjustified claims could cause severe financial hardship.
Electricians are personally liable for any damage they might cause through negligence. Your personal finances as a sole trader or business partner are legally tied to your business. If you lose a negligence claim, you could lose your home, business, or other assets. Insurance cover offers protection against a variety of mishaps at very modest prices.
Insurance Cover You Need
Unfortunately, electrics are dangerous, and faulty wiring could cause severe injuries, deaths, or severe property damage. Electricians might need any of the following types of insurance cover to protect their finances and equipment investments.
- Public Liability Insurance. This comprehensive cover is the most critical for electricians. If a client or bystander is injured due to an accident or negligence, then liability protection indemnifies you against legal claims up to limits you establish when you buy the insurance. Property damage is also covered.
- Employers' Liability Insurance. If you employ any workers, the law requires that you carry this cover to protect your employees from on-the-job injuries.
- Professional Indemnity Insurance. Electricians who also provide engineering or consulting services might need this type of cover. Your advice or electric plans could result in material losses to clients, and they could sue for damages.
- Buildings Insurance. Electricians also need to protect their place of business from various pitfalls.
Optional Covers You Might Need
Bespoke policies for electricians allow you to choose several options in package deals that are very affordable and offer high levels of protection. Covers you might choose include the following.
- Tools and equipment. These implements might be the lifeblood of your business, and without them you cannot work. Damage or theft could paralyse your business.
- Laptop and business equipment cover. Most companies rely heavily on their IT equipment.
- Contents cover. If you store parts and components, you need to protect your investment from accidents and thefts.
- Fittings and fixtures. Interior furnishings often involve expensive décor to impress potential clients. Insurance cover protects your investment from a variety of unfortunate circumstances.
- Front of premises insurance. This cover is often overlooked, but exterior damage occurs with great regularity. Vandalism, thefts, and natural disasters could damage signage, glass storefronts, awnings, and canopies. Replacements and cleanup are expensive.
- Legal expenses. Legal disputes can be very costly, and they also utilise your valuable time when you could be working. Legal expense cover strengthens your options and bargaining position.
- Revenue protection. Accidents, loss of tools, or legal disputes could cause you to lose the income you need to survive. This cover offers a guaranteed source of revenue in emergency situations.
The price you pay for insurance varies greatly among providers and cover packages. Most busy contractors have little time to devote to research, but online resources make it easy to compare prices, packages, and insurance providers.