Despite the best preventative efforts, working with electricity can still leave you exposed to a range of potential risks and accidents. Electricians’ Insurance is essential to prepare for potential incidents and mitigate risks to ensure your electrical business is protected and compliant with regulations.
Liability Insurance, in particular, is extremely important for electricians and may even be mandatory to carry in your state or territory. Learn more about Liability Cover including its importance, where it is required that you carry it and the various types to assist in determining which you should hold.
The importance of Liability Insurance for electricians
Liability Insurance provides protection from potential legal and financial consequences should you or your business be found responsible for property damage, injury or otherwise. This acts as a safety net for expenses and damages, offering financial protection, professional credibility, peace of mind and, in some states, legal compliance.
Liability Cover requirements by state and territory
Every electrical contractor should carry Public Liability Insurance to display professionalism, show care and caution for the wellbeing of third parties, and ensure financial protection. While this is strongly recommended for all providing electrical work, it is only required by law in certain states.
The Liability Cover requirements by area are as follows:
For licence renewal electricians must hold $5,000,000 Public Liability Insurance, $50,000 consumer protection insurance, as noted in the Electrical Safety Act.
Energy Safe Victoria explains Registered Electrical Contractors require a minimum cover of $5,000,000 Public Liability Insurance against personal injury and/or damage to property in connection with the electrical contracting work.
The Tasmanian Government states Electrical Contractor licence renewal in Tasmania requires a minimum of $5,000,000 Public and Products Liability Insurance.
New South Wales, South Australia, Western Australia, ACT
No compulsory requirements but a public liability policy of at least $5,000,000 is recommended. Liability Insurance may be contractually required by some clients.
No set requirements, but it is recommended that Public Liability Cover is held and may be contractually required by some clients.
Types of Liability Insurance
1. Public Liability Insurance
This policy is necessary to offer protection against injury or damage to a person or their property that may occur in connection with the electrical contracting work that is being carried out. This ensures you and your electrical business are covered in the event of third party claims of negligence that has led to injury, damage, financial loss or death.
2. Product Liability Insurance
Product Safety Australia states that this form of Liability is crucial under Australian Consumer Law for all manufacturers or importers that supply consumer goods in trade or commerce. This protects businesses against claims of loss or damage for which their product may be responsible.
3. Workers’ Compensation Insurance
For electrical businesses with employees, Workers’ Compensation Cover ensures that employees are able to receive financial compensation in the event that they become injured or their property becomes damaged due to business activities.
Cover needs for Workers’ Compensation may differ from state to state, so it is important to work with an Insurance Broker who understands the specific requirements of your business and the area in which it is located.
4. Professional Indemnity Insurance
Professional Indemnity Cover insures your electrical business if you offer advice or consulting services for customers, protecting you in the event that errors or omissions in your advice lead to financial loss.
Personalised Electricians’ Insurance cover with Atlantic Insurance
Atlantic Insurance has been catering to the Insurance needs of electricians for many years, with a strong understanding of the unique requirements of the industry that guarantees protection against the particular risks your electrical business may be exposed to.
Contact us today to discuss your coverage needs and budget and devise the ideal insurance plan for your requirements.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.