While undertaking electrical contracting, there are a range of required and recommended insurance types. In some states in Australia, without a compliant insurance policy you may even be unable to apply for or renew your Electrical Contractors Licence.
Aside from ensuring that the work that is being undertaken is safe, that it complies with any current regulations and that a certificate for electrical safety is issued for all projects, carrying appropriate insurance is essential to protect against the risks of the industry.
Understanding which policies or insurance types you should have can be quite confusing, with a range of options available. Atlantic Insurance would like to make the process of deciding on the appropriate insurance easier by laying out exactly what is compulsory and what should be considered for electrical work.
Here is a guide to both the essential and suggested insurance considerations for RECs.
Compulsory Insurance for Electrical Contractors
1. Public Liability Insurance/Consumer Protection Insurance
It is extremely important for electricians to hold a Public Liability Insurance policy, and may be mandatory in your state in order to obtain your licence. As Energy Safe Victoria explains, Public Liability cover is necessary to protect against public liability for injury or damage to a person or property that may arise in connection with the electrical contracting work being undertaken.
See the insurance requirements for each state here:
Queensland: Minimum cover of $5,000,000, with coverage of $50,000 in consumer protection.
Victoria: Minimum cover of $5,000,000 if trading.
Western Australia: Minimum cover of $5,000,000 is recommended.
Tasmania: Minimum cover of $5,000,000.
ACT: Not compulsory, though should be shown to clients if it is requested.
New South Wales: Minimum cover of $5,000,000 is recommended.
South Australia: Minimum cover of $5,000,000 is recommended.
Northern Territory: Not compulsory but recommended that it be held.
2. Income Protection Insurance
If you find that you are unable to work due to an accident, illness or injury that impacts your abilities, this policy can reduce financial stress. Depending on the policy, this can allow you to receive up to 70% of your income (before tax) for a period of time.
While this insurance type is not required for a licence to be obtained, it is possible for it to be a requirement depending on the nature of the work being undertaken. If not compulsory, it is still an essential for electricians that can assist greatly with the financial pressures of injury or illness that leaves you unable to work for periods of time.
Other recommended Insurance Policies
1. Commercial Motor Insurance
Whether it is a single motor being operated or a fleet, this policy can offer protection for your vehicles in the case that they become damaged or damage another vehicle for which you are liable. This is necessary to protect against the financial risks of damage to any vehicles required for your services.
2. Tools Insurance
This form of Insurance for an Electrician is extremely important as without the ability to easily repair and replace tools, financial stress can occur as you are left unable to continue working until they are ready for use again. In the event of accidental loss, damage or theft of your tools, this policy ensures you are able to get back to working as soon as possible.
3. Goods in Transit Insurance
If you are responsible for installing any appliances on behalf of your customers, this policy can also be tailored to ensure that any goods will be protected when imported or exported, or travelling by air, road, rail or sea. These policies can also extend coverage for goods while in storage.
4. Contract Works Insurance
For contractors working on larger projects, this form of insurance can protect against a variety of risks including those which are outside of the contractor’s control. This can come into effect in the case of natural disaster, fire, theft or accidental damage or loss. This provides protection for assets and those works that you potentially remain liable for until these projects are handed over or complete.
Even if Contract Works cover is not a contractual responsibility, it is a good idea to consider this policy to manage risk associated with accidental loss or damage outside of your control.
Electrician Insurance with Atlantic Insurance
The experienced team at Atlantic Insurance has been catering to the various insurance needs of Electrical Contractors for over 25 years, and has developed a strong understanding of the risks involved in the industry. We appreciate the wide scope of work that electricians undertake, and how risks may vary whether work is residential, commercial or industrial.
Our knowledgeable Client Managers are dedicated to detailed risk analysis to provide the appropriate recommendations for cover. Your Electrician Insurance is in good hands with Atlantic Insurance.
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.
