All businesses face risks and those risks can lead to unexpected losses that will at best be an irritation but at worst could cause your business to suffer and possibly even lead to the business becoming bankrupt.
Thankfully there are a number of insurance for electricians products that are available to protect electricians. These are often bought as an insurance package. You can get insurance to protect you against:
- Loss or damage of property
- Compensation claims that are made against you
- Losing your income if you’re unable to work due to an injury or illness
- The cost of legal fees if you find yourself involved in legal action
Property insurance for electricians comes in two forms, and protects your business property against losses due to accidental damage or theft.
Your business premises and the business equipment at your premises should be covered by a property insurance policy. You should make sure you insure for the full value of your business property because you could be penalised in the event of a claim if you are underinsured. Also, if you are a one-man operation working from home, you should check your household insurance because some policies will not cover business equipment.
Business property on site should be protected by a contract works insurance policy. As well as covering your equipment, a contract works insurance policy will also cover any equipment you have hired in.
The contract works insurance policy will also cover the work in progress, as well as any materials on site that are being used in conjunction with the project.
This type of insurance covers you against compensation claims that are made against you. As well as covering any compensation awarded to the claimant, it also covers any other costs and expenses that are incurred as a result of the claim, including the legal fees.
Your insurer will also handle the claim on your behalf. This means that you wouldn’t need to deal with solicitors and wouldn’t have to worry about dealing with complicated legal issues.
Liability insurance comes in a number of forms.
Employer’s liability insurance is a legal requirement if you have any employees, even if they are only temporary or casual employees. It covers compensation claims made against you by your employees.
Public liability insurance is not a legal requirement, but often there will be a contractual condition that says you are required to have it which means that if you don’t have public liability insurance, your opportunities to work will be limited. It covers compensation claims made by third parties.
Products liability is similar to employer’s liability and public liability, but rather than covering compensation claims arising from things you have done or failed to do, it covers compensation claims arising from products that you have sold or supplied.
It is important to make sure that your public and products liability insurance includes a financial loss cover extension because the standard cover only covers compensation claims involving injuries or property damage. The financial loss cover extension means that compensation claims for purely economic losses would also be covered.
If you are providing designs and specifications on a standalone basis rather than as part of a design and fit/install contract, you will also need professional indemnity insurance which protects you against compensation claims arising as a result of professional negligence.
Personal accident & sickness insurance
Personal accident & sickness insurance protects your income if you are unable to work because you are ill or have been injured. A weekly benefit is paid if you are unable to work temporarily and a lump sum is payable if your incapacitation will be permanent.
Legal expenses insurance
Legal expenses insurance covers your legal bills if you find yourself involved in legal action, such as:
- Criminal charges
- Employment tribunals
- Tax/VAT inspections
- Disputes with customers or neighbours