Electrical contractors, whether they are one-man operations or larger organisations, need electricians insurance cover to protect their businesses against unexpected losses. The insurance that they require falls into a number of categories:
- Property insurance
- Contract works insurance
- Employer’s liability insurance
- Public and products liability insurance
- Personal accident and sickness insurance
- Legal expenses insurance
Property insurance protects your business equipment and premises against losses due to accidental damage or theft.
Even if you are a one-man operation working from home, you should consider insuring your business equipment via a business insurance policy because it may not be covered by your household insurance.
Contract works insurance
A property insurance policy will cover your business equipment while it is at your premises, but you need a contract works insurance policy to protect your property when it is on site against losses due to damage and theft.
As well as providing cover for your plant tools and machinery on-site, contract works insurance also covers any hired-in equipment, as well as covering any continuing hire charges if the hired in equipment is lost or damaged.
This type of insurance also covers the work-in-progress and any materials on site that are being used for the project. Temporary structures are also covered.
Employer’s liability insurance
If you employ anyone, even if you only employ them on a casual or temporary basis, employer’s liability insurance is a legal requirement. There are heavy penalties if you are found not to have this insurance when required to do so.
This type of insurance protects you if your employees claim compensation from you because they believe you’re responsible for them being injured.
As well as paying any compensation awarded, employer’s liability insurance also pays any associated costs and expenses including the legal fees. Your insurer will also handle the claim on your behalf, so you don’t need to worry about dealing with legal issues.
Public & products liability insurance
This type of insurance is similar to employer’s liability insurance in the sense that it covers compensation claims that are made against you, but it covers claims made against you by members of the public.
Public liability insurance covers claims arising from things that you have done or failed to do and products liability insurance covers claims arising from defects in products that you have sold or supplied.
Public and products liability insurance only covers compensation claims that involve injuries or property damage. You should make sure your insurance includes a financial loss cover extension so that compensation claims for purely economic losses are covered.
Although public and products liability insurance are not a legal requirement, often there will be a contractual requirement for you to have it, so if you don’t have these types of insurance, you’ll be limited in terms of what work you will be able to do.
Personal accident & sickness insurance
Personal accident and sickness insurance protects your income if you are unable to work because you’re ill or have been injured. This means that you can concentrate on your recovery without having to worry about whether you will be able to pay the bills at the end of the month.
This type of insurance pays a weekly benefit if you’re unable to work temporarily. If you will be permanently incapacitated, a lump sum is payable. A lump sum is also payable in certain other situations, such as death or the loss of a limb or eye.
Legal expenses insurance
If you find yourself involved in legal action, legal expenses insurance covers your legal costs. Your legal expenses insurer will also help you deal with the legal action.
A wide range of different types of legal action are covered, including:
- Criminal charges
- Employment tribunals
- Disputes with customers or neighbours
- Tax/VAT investigations