ELECTRICIAN INSURANCE

What insurance do I need if I'm an electrical contractor?

Life as an electrician can get pretty full-on, and there are risks lurking everywhere. You may have the qualifications and training that it takes to complete a job safely and to a high standard, but you never know when something will go awry and you’ll find yourself the subject of a compensation claim.

If you’re an electrical contractor, there are one or two types of electrician insurance that you need. First of all, if you have any employees working for you, you are going to need Employer’s Liability Insurance. This is a legal requirement in the UK if you employ staff and you will be hit with a big fine if you don’t have it.

Luckily, Rhino’s electrician’s insurance package will include Employer’s Liability Insurance if you are an employer. That’s the great thing about Rhino’s policies – they can be tailored to suit your unique business needs.

The next type of insurance you’ll need as an electrical contractor is Public Liability Insurance. This is a bread-and-butter policy that almost every self-employed person needs, but it’s even more important to get fully covered by Public Liability Insurance if you’re in the hazardous world of the trades.

Income Protection Insurance is another great add-on policy that you can add to your Electrician’s Insurance package with Rhino. If you were injured and found yourself unable to work for a period of time, this insurance would step in and keep your mortgage, bills and essentials covered while you recover.

Other types of insurance an electrical contractor might need include Tools in Transit Insurance – to protect your valuable tools, Legal Expenses Insurance – in case you need to defend yourself legally or make up for lost income during Jury Service, Tax Enquiry Insurance – in case HMRC come calling, and Professional Indemnity Insurance – for when you’ve made a professional blunder that you need to make right.

In reality, the list of insurance types an electrical contractor may need can be long. Trust the experts at Rhino to guide you in choosing a package which suits your needs and budget.

 

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What does electrician’s public liability insurance typically cover?

Electrician’s public liability insurance will cover the financial costs of a third party bringing legal action against your business. This can be for:

• Legal costs and compensation for injury, death or property damage caused by you while carrying out your work
• Claims brought by businesses or individuals – they’re both covered with Rhino

 

What insurance do I need if I'm an electrical sub-contractor?

You might think that being a sub-contractor means you can skip the trade insurance, as the one hiring you will sort that out. This is unfortunately not the case. It’s advisable for sub-contractors to have their own cover to ensure that they won’t be the ones taking the financial hit if something goes wrong on-site as a result of their work. 

As an electrical sub-contractor, you definitely need your own Public Liability Insurance policy. You’re going to struggle to find a contractor who will hire you unless you have a policy in place, which will mean finding work is a challenge for uninsured sub-contractors. 

You might also want to look at some other insurance policies including Tool in Transit Insurance, Van Insurance and Tax Enquiry Insurance (a big one for sub-contractors who could find themselves needing to prove their status under IR35).

 

Is insurance tax deductible?

Yes. Business insurance is considered an ‘allowable expense’ as you’re buying it to cover yourself while you work. 

 

How much cover do I need?

There is no single answer to this question as every case is different. 

There are various factors which affect the amount of cover you’ll need to take out as an electrician. Things like the size of your business, the number of employees, the areas you work in and the jobs you carry out all influence the level of indemnity you will need.

It depends on the type of insurance, too. Some insurance types, such as Public Liability Insurance limits vary from £1M up to £5M due to the high costs associated with some claims. Tools in Transit insurance limits are £10,000 as this is how much it can cost to replace a full set of tools.

When choosing your cover limit, it’s up to you. However, be cautious. Consider the worst case scenario – a serious injury or fatality associated with your work. Nobody likes to think about this happening, but people are seriously harmed or killed by electricity every year in the UK, and if your business is found responsible, you could be looking at being liable for millions.

No idea how much cover you need? Don’t worry, Rhino Trade Insurance have a handy quote generator which will guide you with a suggested cover limit. Alternately, our expert staff are on hand 6 days a week to talk you through it all.

 

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Factors that Affect Electrician Insurance Premiums

Rhino offer the best low-cost insurance around. But how much you’ll pay for your electrician’s cover will depend on a number of factors. These are some of the main things that affect your premiums:

• The size of your business – annual turnover and number of employees. The larger your operations, the higher your premiums are likely to be.
• The level of cover you want. Higher indemnity limits mean higher premiums.
• Your location – some areas are riskier.
• The type of work carried out. Generally, more dangerous jobs mean more to pay in premiums. 
• Your claims history – the fewer claims made, the lower your premiums
• The type of work you’re doing – the more risk, the higher the premiums

 

DO YOU NEED ELECTRICIAN’S INSURANCE?

Yes. It doesn’t matter how experienced an electrician may be, adverse events can and do happen.

Ask yourself, if you were left unable to work due to an accident, would you be able to make ends meet?  If a customer was injured because of your work, could you cover the costs to make things right?  If your tools were stolen from your vehicle, would you be able to do your job?

If the answer to the above is ‘no’, then you can see why it’s wise to have tradesman insurance in place.  It will give you protection and peace of mind – both priceless in our opinion!

 

What else should I consider when taking out tradesman insurance for electricians?

It might be temping to go for the lowest levels of cover to save a few quid month-to-month. We understand, especially when times are tough. But consider how common workplace accidents, third-party injuries, customer disputes, tool theft and property damage are in the trades. It’s really not worth skimping on cover, as you’ll find yourself having to pay huge out-of-pocket expenses should something happen.

Further, your reputation will suffer if something happens and you don’t have enough insurance to put it right. If you’re serious about growing your business and attracting new customers, it pays to have plenty of cover.

 

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