Nobody is immune when it comes to accidents. Even if you’re fully qualified and work as professionally and as safely as possible, the unexpected will happen from time to time.
For this reason, although it’s important to try to prevent accidents from happening, it’s also important to have electrical contractor’s insurance so that if an accident happens, the unexpected costs that arise will be covered.
But there are as many electrical contractor’s insurance products on the market as there are different types of electrical contractors and self-employed electricians. Each offers a different level of cover and each has a different level of premium to pay for its cover. How do you make sure you have the best insurance cover for your business at the best price? Here, we explore some of the various covers on offer, and how they can help keep your business safe should the worst happen:
Liability insurance protects you if someone claims compensation from you because they feel you are at fault for an injury they have sustained or for damage to their property.
Employer’s liability insurance covers claims made by employees. This type of insurance is a legal requirement. If you’re carrying out electrical work at height, it’s important to check that the insurance policy doesn’t contain a height restriction that would leave you uninsured.
Public and products liability insurance covers claims made by members of the public. Again, if you are working at height you should make sure that the insurance policy does not contain a height restriction below the maximum height you’ll be working at. Also, if you’re using heat you should make sure that the insurance policy does not exclude claims arising out of heat use because accidental fires can be very costly.
You should make sure that your public and products liability insurance includes a financial loss extension. Many public and products liability insurance policies only cover compensation claims that arise from an injury or property damage. Without a financial loss extension, claims for purely economic losses would be excluded.
And you should give careful consideration to the public and products indemnity limit that you select. The indemnity limit is the maximum that the insurance policy will pay in the event of a claim so if you set it too low, you could have to contribute towards the cost of a large claim. However, if you set it too high, you’ll be paying more premium than you need to.
Most people know that they need to insure their tools and equipment against the risk of accidental damage to it, or loss of it due to theft. However, as an electrical contractor, much of your work will be undertaken away from your own premises, so it’s important to make sure that your tools and equipment insurance does not restrict cover to losses arising at your own premises only.
A contractor’s all risks policy will cover your own property, as well as hired-in equipment that you are responsible for, on a construction site. It will also cover the work in progress until handover. This is usually provided as an additional optional cover that you can add should you need it.
Motor insurance is a legal requirement. If you are caught using an uninsured vehicle in a situation where insurance is required, you’ll face serious penalties and could have your vehicle confiscated.
Third party, fire & theft motor insurance is cheaper than comprehensive motor insurance, but only covers damage to your own vehicle if the damage is caused by fire and theft.
Another option is to select a higher excess. The excess is the amount you have to pay each time you make a claim. If the policy excess is £250, selecting a £500 policy excess instead could result in meaningful savings, although it would mean that if you had a claim you would have to pay more towards it.