Electricians – Don’t get your wires crossed about what business insurance can do for your business!

As an electrician you know your wiring inside and out. But when it comes to business insurance, you might as well be looking at spaghetti. Plus, who’s got the time to try to be an insurance expert. However, insurance can be worth it, keeping you grounded from shocks when unfortunate events happen.

To help you understand your insurance options, we’ve broken it down so you can find the answers you need and get back to your growing jobs list. So, let’s look at why you might benefit from a specific trades insurance, what it can cover and as an electrician how to choose the right insurance policy.

Why electricians should consider insurance

If you’re running a business or working as a contractor, as an electrician, you should always consider if insurance could be beneficial. 

You might ask, “Is it really worth the hassle?”. But when you consider the risks you face every day such electrical shocks and burns, falls from heights, and exposure to hazardous materials, you may decide the benefits are worth it…

Risks for electricians

As an electrician, the risks you face might differ depending on your specialism. But generally, risks for tradespeople can broadly include:

• A client or passerby trips on your tools or equipment, causing an injury
• You accidentally damage a client’s property
• You injure yourself on-site or travelling to/from work, leaving you unable to do your job
• A client claims your work was faulty, causing them financial loss
• Someone you employ injurers themselves while carrying out work duties
• Your tools are damaged or stolen from secure storage
• Plant machinery that you own or hire for a project is stolen or accidentally damaged
• Your work is damaged mid-construction, and you have to redo work/pay for more materials

Insurance benefits

Some benefits of insurance might seem obvious but to avoid crossed-wires, here’s what it can offer:

• Financial protection – stolen tools, an inability to work, or project disruption can hit you hard. Insurance can help cover costs, taking some of the burden off your shoulders.
• Peace of mind – you’ll have one less thing to worry about (and maybe sleep better) knowing if something was to happen, your insurance has you covered.
• Supported recovery – getting support with claims and associated costs can help you manage incidents quicker, so you can get back to your current job.
• Client trust – when trying to secure clients, having insurance can give them reassurance. Certain cover types can also be a requirement for some contracts!

What can a specific trades insurance cover

Trades or tradesmen insurance can often include multiple types of cover under one insurance policy, with optional add-ons to tailor to your specific trade.

Let’s look at what tradesman insurance can cover and the main policy types available for tradespeople.

The following is a general guide to what types of cover trades insurance policies might include. Please always check the policy wording, policy schedule and terms & conditions supplied by the insurer.

Public liability insurance

What is it

Often shortened to PL, it can provide cover when a third-party is injured or you cause damage to third-party property.

What can it cover

• Bodily injury or property damage to a third party (excludes employees) 
• Compensation payments 
• Repair costs 
• Professional fees (including legal) 
• Medical fees

Example

An electrician accidentally injures a client with trailing cables whilst installing or another tradie comes into contact with live wires whilst working on a half-finished extension.

Employers’ liability insurance

What is it

A legal requirement for any business that employs anyone, this covers legal and compensation costs for claims from employees who are injured or get ill due to their work.

There are some employers/company types that are exempt – you can find more information on page 3 of HSE’s guide for employers.

What can it cover

• Employee injury or illness due to their work or your workplace
• Legal expenses to defend the claim
• Medical expenses you’re liable for

Claim example

An apprentice receives an electric shock from a live wire after improper supervision/training, or an employee develops health issues (like asthma) from regularly working on construction sites.

Tools insurance

What is it

Tools insurance (or Goods & Tools cover) can cover the costs to repair or replace tools that are stolen or damaged following fire or theft (with signs of forced entry).

Some conditions often apply, like there has to be sign of forced entry or tools can’t be left unattended for more than 24 hours in a secure location outside the home.

It’s also best to keep a copy or log of serial numbers and proof of ownership – this will help with valuing any claim plus some insurers will need you to prove the tools are yours!

Our insurance partner Kingsbridge has a whole guide on tools insurance if you want to know more!

What can it cover

• Tools stolen from a secure home or van (with signs of forced entry)
• Damaged caused by theft, attempted theft or fire
• Tools stolen from a secure van overnight (with signs of forced entry)
• Goods damaged due to a road traffic accident, theft or fire

Claim example

Your tools are stolen from your secured garage after a thief breaks through a window, securely packed goods are damaged in a traffic collision or equipment is damaged in a fire.

Professional indemnity cover

What is it

Sometimes referred to as PI, this can protect against claims of financial loss caused by your professional negligence while providing services, professional advice or consultancy.

What can it cover

Compensation and legal fees you may need to pay as a result of:

• Professional negligence (advice/designs/specifications)
• Loss of private data or documents
• Financial losses for clients (resulting from your negligence)
• Defamation

Example

You recommend the incorrect voltage for a home or wrongly assesses a business’ electrical installation as safe and the business loses income due to the inability to operate.

Hired in plant cover

What is it

Hired in plant refers to the plant and machinery that you’ve hired or are responsible for. This trades insurance type can protect against damage, vandalism, theft (with signs of forced entry) or destruction while equipment is in your care.

What can it cover

Costs resulting from an insured event, like: 

• Repair costs
• Replacement bills
• Project delays
• Lost revenue

Example

Vandals break into a locked compound and damage a aerial lift you’ve hired, your hired generator is dropped while being loaded or strong winds cause a tree to fall over and land on a rented concrete core drill.

Owned plant cover

What is it

Essentially the same as ‘hired in plant’ cover, owned plant applies to plant and machinery that you or your company own – also protecting from theft (with signs of forced entry), damage or destruction (from vandalism or fire) while on-site, in transit or in storage.

What can it cover

Costs to repair or replace owned plant and machinery, including events like: 

• Damage, theft, attempted theft and destruction by fire or vandalism 
• Theft from off-site storage (securely locked or guarded & signs of forced entry) 
• Damage to security devices
• Loss of keys

Example

Your owned step-down transformer is hit by other on-site machinery, an accidental on-site fire destroys your company’s temporary site hut or thieves vandalise your cable pulling winches while locked in a secure compound.

Contract works insurance

What is it

This is a type of cover specific to property or construction projects while they’re being built. It offers financial protection to restore a project when an accidental event causes damage or destruction.

What can it cover

Costs to restore the construction project to its state before accidental events like:

• Fire
• Theft (with signs of forced entry)
• Flooding
• Vandalism
• Storms
• Natural catastrophes

Example

Heavy rain floods a construction site, destroying some of your completed works, or vandals break into a partially built new home and rip out the electrics.

Choosing the right trades insurance

Now you’ve got an understanding of the types of cover that might be included with Tradesman Insurance, how do you choose the right policy?

The best place to start is understanding what types of cover you’d benefit from (above). Then you can compare this to what each trades insurance provider offers and if it ticks the right boxes.

A few tips:

• Risks: List any risks you might be exposed to in your line of work – for example if you work at height or complete phase 3 electrical work. This’ll help you understand what types of cover you need your insurance policy to include.
• Limits: The limit is the maximum amount of financial cover your insurer is liable for i.e. if your public liability limit is £1m, that’s the maximum amount you can claim for.
• Conditions and exclusions: Check policy wording for exclusions and conditions, especially those that refer to working with heat equipment or at height. These will determine what might exclude a claim from cover and what conditions you need to meet for a claim to be deemed legitimate.
• Extra cover: Most trades specific insurance policies will combine covers like public liability and tools cover. But check for optional add-ons that can tailor your insurance to your trade.

How to find insurance for electricians

So, you know what each type of cover is for, and have a few tips on choosing a policy. How do you start looking for the right insurance for electricians?

• Research – look for trades-friendly insurance providers or brokers. Try searching for variations like Electricians Insurance, Trades Insurance, Tradesmen Insurance and Tradesman Insurance.
• Ask questions, don’t rush –Take your time and find a provider that can answer your questions so you can make sure your trades policy protects you in the ways you need it to.
• Check the ‘fine print’ – when looking at policies always check the terms and conditions, especially exclusions. This will help you understand your cover and make sure your trades insurance covers your professional circumstances.

Our insurance partner Kingsbridge offer a combined Trades Insurance policy, including Public Liability, Goods & Tools cover and optional Employers’ Liability (where required). Other add-ons include Hired in Plant, Owned Plant, Contract Works, Professional Indemnity (PL is on a claims-made basis).

The cover also offers perks like:

• Up to £2,500 Goods & Tools cover included as standard  
• Cover for tools stolen from a secured van overnight (where there are signs of forced entry & security conditions are met)
• Nil or low excess available for some trades (will be noted in your policy schedule)  
• Real support from in-house dedicated experts  
• No hidden fees  

PROTECT YOUR TRADE, YOURS TOOLS, AND YOUR LIVELIHOOD

All the trades cover you need in one affordable package. Through Powered Now, you get an exclusive 10% off a Kingsbridge Trades insurance policy, as well as a bunch of extra perks.

These include:

• Up to £2.5k tools and equipment cover included as standard at no extra cost
• Next business day payout on accepted tool theft claims
• Nil excess on most professions covered
• Comprehensive core covers all in one place

To secure this deal, fill in the form below for your free quote:

*Disclaimer – this a general guide to insurance cover types for electricians and exact coverage, conditions and exclusions may differ per policy and insurance provider.