Being an electrician comes with its own set of risks with every project you work on. Both large electrical contracting businesses with employees and self employed electricians can run into unforeseen circumstances. Whether it’s making a mistake rewiring a light fitting that is going to cost to redo your work or your apprentice electrician slips on the job – and you’re found liable. Working on construction sites means that you’re working in environments where things can go wrong – and when they do, the cost can be more than just time and materials. It could also cost you your business. That’s why electricians insurance matters.
In this guide from East Yorkshire Insurance Brokers, we’ll break down what insurance for electricians actually is, why it’s so important, the types of cover you might need, and how it can protect your business if something goes wrong. We’ll also look at why electricians public liability insurance is essential, even if you’re self-employed. Continue reading to find out more or if you’re an electrician give us a ring and we can talk you through what you need!
What Is Electricians Insurance
Electricians insurance is basically policies that are designed to cover electricians from the risks they face when doing their job. Having the correct insurance for electricians in place acts as a financial safety net so if you happen to make a mistake or your expensive tools are stolen, you have peace of mind that your finances won’t take a huge hit. The type of work you do will shape the cover you need. Some clients might not even let you start work without showing proof of cover, and if you’re subcontracting on a commercial job, you could be asked to produce a copy of your public liability certificate before setting foot on site.
Why Do You Need Insurance For Electricians
The simple answer: things go wrong. Not often. But when they do, they tend to be expensive. It’s not just about making a mistake which can happen to anyone, but some things are just out of your control and unpredictable – like getting your expensive equipment stolen that’s essential for you doing your job.
If you drill through a water pipe, blow a fuse board, or install something that later fails and causes damage, it’s likely you’ll be held responsible. And even if it wasn’t technically your fault, you could still be facing a legal claim. Insurance means you’re not dealing with the fallout alone.
And it’s not just the big accidents. Something as small as a customer tripping over your extension lead could end with a claim. If that happens, you want to know that your insurance policy will step in to cover compensation, legal costs and everything else that comes with it.
What Insurance Do Electricians Need
If you want to know the answer to what insurance do electricians need? The type of work you do will determine what levels of cover you should have in place. For example; if you’re self-employed or you have a large electrical contracting business. However here are some of the main types of electricians insurance that most tradespeople should be thinking about:
Public Liability Insurance Electrician
Public liability insurance for electricians covers you if someone is injured or their property is damaged as a result of your work. It could be a smashed tile, a blown socket, or something more serious such as a fire that’s traced back to your installation. It doesn’t matter whether you’re at fault or not. If you’re working in or around other people’s homes or businesses, electricians public liability insurance is definitely something you should consider.
Employers Liability Insurance For Electricians
If you employ anyone at all (even just one person or someone on a casual basis) you’re legally required to have employers’ liability insurance. That includes apprentices, part-time help, and even labour-only subcontractors working under your direction. If one of them is injured on the job, say from a fall while running cable in a loft or getting a shock due to a faulty test pen, and they make a claim, this is the policy that will cover the legal and compensation costs. Without it, you could be personally liable – and the fines for not having this insurance are steep.
Contract works insurance for electricians
If you’re working on a job and something damages the work already completed; whether it’s a fire, flood, or even vandalism and theft – contract works insurance for electricians helps cover the cost of putting it right. This can be especially important if you’re handling larger projects or phased installations where delays and repairs can be expensive. Say you’ve wired up part of a new extension and the site is vandalised over the weekend. Without this cover, you’d be footing the bill to redo the work. With contract works insurance in place, you’re protected against the unexpected.
Professional Indemnity Insurance For Electricians
Not every electrician will need this, but it’s worth knowing about – especially if you offer any consultancy work. Professional indemnity insurance protects you if a client claims they’ve lost money because of a mistake in your advice or plans. For example, if you draw up a lighting layout for an office and it turns out to be non-compliant with regulations, the client might claim against you for the cost of redoing the work. You might find yourself in a situation where your advice is challenged. If that happens, this cover makes sure you’ve got support in place to deal with it.
Tools And Equipment Insurance For Electricians
Your tools are your livelihood. If your van’s broken into and your kit is gone, that’s not just a few hundred quid down the drain – it’s lost jobs, lost income, and a stressful scramble to replace everything. Tools and equipment insurance helps cover the cost of replacing stolen or damaged tools, whether they’re in your van, on-site, or at your lockup.
Do You Need Electricians Insurance If You’re Self-Employed?
Yes. It’s advised that if you are a self-employed electrician, you shouldn’t overlook getting insurance in place. If something goes wrong, it’s your name on the invoice and your reputation on the line. There’s no big company behind you to absorb the cost or deal with the legal side of things. Even just working in someone’s house without public liability cover can be risky. If you trip the electrics and ruin a customer’s fridge freezer full of food, they could put in a claim. Having the right cover gives you peace of mind – and makes you look more professional when clients ask for your paperwork.
What Is Insurance For Electrical Contractors?
If you run your own electrical contracting business – whether that’s as a limited company or as a sole trader taking on larger projects; you’ll need a broader set of cover than someone working as a one-person domestic electrician. The main difference between an electrical contractor and a regular electrician is scope: contractors usually manage multiple jobs, bring in subcontractors, and may even be responsible for aspects of the design or project planning. You’re not just doing the hands-on work – you’re overseeing it.
Because of that, public liability insurance for electrical contractors is worth having, especially if you’re working across multiple sites or commercial jobs. If you employ anyone (even just occasionally), employers liability insurance is a legal requirement. You should also consider professional indemnity insurance if you’re advising clients, creating plans, or involved in any technical decision-making.
Depending on the size and type of jobs you take on, you might also want contract works insurance for electrical contractors to cover completed work that gets damaged before sign-off, and tools cover to protect your gear. If you’ve got an office or premises, you may also need property or office insurance.
What Insurance Do I Need If I’m an Electrical Sub-Contractor?
If you’re working as a sub-contractor – brought in by another business or main contractor to do the electrical side of a project – what you need depends on how you’re classified. There are two main types: labour-only sub-contractors and bona fide sub-contractors. Labour-only sub contractors typically work under the supervision of the main contractor and use their materials and tools. In these cases, you might be covered under their employers liability and public liability policy – but don’t assume that’s always the case. It’s worth checking in writing.
Bona fide sub-contractors, on the other hand, work independently. You bring your own tools, make your own decisions on-site, and invoice for the job. If that’s you, you will need to arrange your own public liability insurance. You should also look at tools cover, and if you’re employing anyone yourself (even short-term) you’ll need employers liability too.
Contact EYIB For Electricians Insurance
At East Yorkshire Insurance Brokers, we know the electrical trade. We can help you get the cover you need whether you’re a sole trader just starting out or a well-established firm; we can arrange a policy that actually fits the work you do. We’ll ask what kind of work you take on, what kit you use, whether you employ anyone, and go from there. We will talk you through the cover you need. Give us a call for a free insurance review today and get peace of mind that when you’re on the job, you’re covered if something goes wrong.
Electricians Insurance FAQs
Do electricians need insurance?
Yes, it’s advised that electricians should have insurance to cover themselves financially if something goes wrong on the job. It also helps you meet client requirements and secure more work.
What insurance do electricians need?
Taking out public liability insurance for electricians is a starting point. If you employ staff, you’ll legally need employers’ liability too. Tools and equipment cover may also be worth adding so your finances don’t take a huge hit if they get stolen.
Do self-employed electricians need insurance?
Yes. Self-employed electricians are personally responsible if something goes wrong, and without insurance, any claims or losses fall directly on you.
How much does insurance for electricians cost?
How much your electricians insurance costs will depend on a few things like how big your projects you work on are or if you have employees. By giving us a call at EYIB we can give you a free insurance quote so you know how much it’s going to be.
