Working with electricity can involve risks that may endanger yourself, your employees, third parties or your business. It is essential to have the right electrician insurance in place to cover anyone impacted and minimise any damages and risks. As an electrician, there are a range of required and recommended insurance types. In some states in Australia, with a compliant insurance policy, you may be able to apply for or renew your electrical contractor’s licence.
Understanding which policies or insurance types you should have as an electrician can be confusing. For over 25 years, Atlantic Insurance has been helping make deciding on the appropriate electrician insurance easier by laying out precisely what is compulsory and what should be considered.
Compulsory Insurance For Electrical Contractors
Public Liability Insurance for Electricians
Electricians need to hold public liability insurance. In some Australian states, it may be mandatory. According to Energy Safe Victoria, 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.
Each state has different insurance requirements that include:
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 it should be shown to clients if 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.
Income Protection Insurance for Electricians
If you cannot work due to an accident, illness or injury that impacts your abilities, this policy can reduce financial stress. Depending on your policy type, it can allow you to receive up to 70% of your income (before tax) for a period of time.
While an income protection insurance type is not required for a licence to be obtained, it can be a requirement depending on the nature of the work being undertaken. If it is not compulsory in your state or territory, it is still essential for electricians as it can assist significantly with the financial pressures of injury or illness that leaves you unable to work for periods.
Recommended Insurance Policies for Electricians
Commercial Motor Insurance
Whether it is a single vehicle being operated or a fleet, this policy can offer protection for your cars in the case that they become damaged or damage another vehicle for which you are liable. Commercial motor insurance can protect against the financial risks of damage to any vehicles required for your electrical services.
Tools Insurance
Tools insurance for electricians is essential because without the ability to quickly repair and replace tools, financial stress and loss of work can occur. In the event of accidental loss, damage or theft of your tools, tools insurance ensures you can get back to working as soon as possible.
Goods in Transit Insurance
If you are responsible for installing any appliances on behalf of your customers, goods in transit insurance can 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.
Contract Works Insurance
For electrical contractors working on larger projects, this insurance can protect against various risks, including those outside of your control. Contract works insurance can come into effect in the case of natural disaster, fire, theft or accidental damage or loss. This protects assets and those works that you remain liable for until these projects are handed over or completed. Even if contract works insurance 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.
Get Electrician Insurance with Atlantic Insurance
For over 25 years, the experienced team at Atlantic Insurance has been catering to the various insurance needs of electrical contractors. Our team of Client Managers have developed a strong understanding of the risks involved in the electrical industry. We appreciate the broad scope of work that electricians undertake and how risks may vary whether work is residential, commercial, or industrial. We are dedicated to detailed risk analysis to provide the appropriate recommendations for cover.
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.
