The cost of electricians insurance varies according to a number of factors and the only way to find out how much your insurance will cost is to get a quote from someone. The factors that affect the cost are:
- Your experience and qualifications
- What work you’re doing
- How much work you’re doing
- What cover you require
Your experience & qualifications
If you’re fully qualified and you’ve been working for years without ever having to have had to make an insurance claim, insurance companies will view you as a better prospect than they will if you’re just starting out, aren’t fully qualified or have made one or more claims in the past.
Given this, although clearly, you can’t do anything about how many years you have been working, it’s important that you make sure you undertake as much ongoing training as possible. It’s also important that you don’t take chances and cut corners, because although in the short term this can save money, if it results in you having to make an insurance claim because it leads to an accident, in the long term it could end up costing you a lot more in increased insurance premiums.
What work you’re doing
If you are just working on private houses, it’s likely that any insurance claim that does arise will cost less to settle than an insurance claim that arises from work on large commercial units. You’re also more likely to need to make an insurance claim if you’re undertaking hazardous work rather than relatively simple jobs.
When pricing jobs, it’s important to remember that the insurance cost for the work will be dependent on the nature of the job and factor in that cost accordingly.
How much work you’re doing
The main component of electrician’s insurance is public liability insurance, and obviously the chance of you having to make a public liability insurance claim increases as you do more work because there are more opportunities for accidents to happen.
Public liability insurers use a variety of measures to assess how much work you’re doing. Some will base your premium on your annual turnover or your annual wage bill. Others will base your premium on the number of employees that you have.
Whatever rating method is used, if you are doing more work, your insurance premium will increase to reflect the increased chance of you having to make a claim.
What cover you require
If you just need basic insurance cover, it’ll be cheaper than a more comprehensive insurance policy because there is less chance that the insurance company will have to make a claim. However, choosing basic cover rather than a more comprehensive policy could leave you uninsured in the event of something bad happening, so it can be short-sighted to go down that route.
In terms of the insurance for your tools, equipment and other property, the insurance cost will depend on the value of that property, as well as how it is stored when it’s not in use. If it’s kept in storage that has a burglar alarm, it’ll cost less to insure it than if it’s just kept in a shed in your garden, for instance.
From a liability insurance perspective, the main thing that will affect your insurance premium is the indemnity limit you select. The indemnity limit is the maximum that the insurance will pay out for each claim.
The standard indemnity limit in a public liability insurance policy is usually £1,000,000 and that is often adequate for someone doing relatively standard work on private houses. However, if you’re working on large commercial properties, that indemnity limit could be inadequate. Additionally, some contracts will stipulate that you need to have a higher indemnity limit before you’re allowed on site. Many contractors and local authorities stipulate that you need an indemnity limit of £2,000,000 or even £5,000,000.
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