What insurance do electricians need? 

By Bethan Harper on Small Business UK - Advice and Ideas for UK Small Businesses and SMEs

If you’re a self-employed electrician who knows they’d like to insure their livelihood, but you’re not sure how. You’re not alone. With so many types of insurance policies on the market, it’s hard to know what you’re legally required to purchase, what’s highly advisable and what’s not necessary for you.



So, if you don’t know your public liability insurance from your business interruption Insurance, don’t fret. With a bit of insight and the simplicity of a combined insurance policy, insuring your electrician business might seem a bit simpler.



Read on for all the details or jump to your preferred section:




What electrician insurance is legally required?



What insurance would be beneficial for my electrician business?



Do electricians need public liability insurance?



What about property damage insurance?



Would warehouse insurance benefit me?



Should I consider stock cover?



How might business interruption insurance help me?



What restrictions might I come across?



Where can I get electrician’s insurance? 




What electrician insurance is legally required?



If you don’t have any employees, you aren’t legally required to purchase any specific insurance policies. However, if you have even one employee (even if they’re an unpaid volunteer or student intern), you are legally required to purchase Employers’ Liability insurance.



Employers’ Liability Insurance is extremely important as it will cover you financially if one of your employees becomes ill or is injured through work and requires compensation. And since electricians are prone to electric shocks, burns and falls, the investment is likely to be worth it.



Electrician worker at work on an electrical panel.



What insurance would be beneficial for my electrician business?



While Employee Liability Insurance is a legal requirement for any business with employees, that doesn’t mean it’s the only one you need.



It’s not nice to think about but, when running a business, there’s a lot that can go wrong. And without the right insurance packages, unexpected events like fires, theft or unintentional damage could leave you financially ruined.



Investing in insurance is a great way not only to invest in your peace of mind, but your financial future too. Here are some insurance policies that could benefit you if the worst happens:



Do electricians need public liability insurance?



With Public Liability Insurance, you’ll be covered if one of your customers or a member of the public suffers an injury or property damage at the hands of your work or on your business premises.



For example, if your customer trips over a wire in your shop and claims compensation for their injuries, you won’t have to fork out.



So, while it’s not a legal requirement, it is highly advisable.



What about property damage insurance?



Property Damage Insurance covers your electrician’s equipment, furnishings, machinery and property against damage and loss. That means, if something expensive is in need of replacement out of the blue, you won’t have to pay out of pocket.



Would warehouse insurance benefit me?



Whether you need Warehouse Insurance will depend on where you store your stock and equipment. If you don’t use a warehouse for this, it’s unlikely you’ll need this policy at this time.



But, if you now, or in the future, utilise a warehouse space, taking out this type of insurance will protect anything stored in your warehouse against theft of damage.



Should I consider stock cover?



To run your electrician business properly, you need the correct materials, and a lot of them. Investing in Stock Cover provides financial protection against theft or damage to your stock.



It’s particularly important to consider Stock Cover if you have a business premises or store your stock away from your home as it will no longer be covered by Home Insurance.



Electrician measurements with multimeter testing current electric in control panel.



How might business interruption insurance help me?



Business Interruption Insurance covers financial losses during a period when you cannot run your business as usual due to unforeseen circumstances.



Usually, these policies cover damage by floods, fires or storms as well as the breakdown of essential equipment. Some Business Interruption Insurance policies also cover damage that occurs at your supplier’s premises.



These types of events can happen to any company without warning, so keep your electrician business protected.



What restrictions might I come across?



Like with any insurance package, there are a few things the policies previously mentioned won’t cover. For example, public liability insurance only covers compensation and legal fees if a member of the public incurs an injury. However, if you are injured, you won’t be covered.



Additionally, Business Interruption Insurance does not cover voluntary closure of your business. You’ll only be protected if it is impossible for your business to operate, such as in the instance your essential equipment breaks down.



Before taking out an insurance policy, always check what is and isn’t covered. You can usually find information on this in your policy documents and terms and conditions.



Electrician installing downlights



Where can I get electrician’s insurance? 



There are a number of providers on the market offering a range of business-related insurance policies. The provider you choose and the policies you invest in will largely be determined by the nature of your business, it’s size and how you operate. So, there is no one-size-fits-all answer.



However, a common issue for those starting a new business is being overwhelmed by the number of insurance policies they need to purchase and keep up with. Combined Commercial Insurance is a great way of making the process a little bit easier by allowing you to combine several coverage types under one policy.



If you’re interested in Combined Commercial Insurance, SmallBusiness.co.uk can help you  find the best provider  for your needs. Or, sign up for our  Business Essentials membership  and get your business protected for essential cover.



More on insurance



Do electricians need professional indemnity insurance?  –  Not sure if you need professional indemnity insurance as a self-employed electrician? Find out more here.



Public liability insurance: why you need it  –  Not sure if you need public liability insurance for your business? Here’s why you may need it and what event insurance is available



Small business insurance: What to look for in a policy – In this article, we look at the variety of business insurance cover you should consider in your small business.
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