BUSINESS INSURANCE

Public Liability for Electrical Contractors

Scott Norton, Managing Director – Norton & Co Insurance

2 November 2020

Most businesses have the option to get public liability insurance but for an electrical contractor it is often mandatory. It may be a requirement by the state in which they operate or by the companies that they subcontract to.

How much cover does an electrical contractor need?

The requirement set by most states in Australia is a minimum of five million dollars in public liability insurance for those carrying out both residential and commercial work. Some electricians may even require more depending on the types of work that they are doing which is why it is important to talk to an expert to ensure the correct cover is taken out.

What does public liability cover?

Public liability insurance is designed to protect the holder of the policy and their business from claims made against them. It will cover the costs of any incident that has resulted in either in personal injury to another person or property damage.

If you are found to be negligent then you will likely be liable for the other person’s costs which can include repair and replacement, medical bills, lost income, rehabilitation and other forms of compensation in the event of personal injury or death.

These costs can range from a few hundred to millions which is why it is important to make sure you have adequate cover before commencing any contracting work.

How much does public liability cover cost?

The cost of public liability insurance depends on the type of work you do, where you carry out this work and how big your business is. If you are a sole trader, with an average turnover, working as a domestic electrician then you can expect to pay between $500 and $700 for your insurance. Larger electrical contracting businesses with more staff, higher turnover and working in higher risk locations can expect to pay a lot more. The most accurate way to determine what your cost will be is to talk to a professional. They will be able to provide information on the level of cover you require, and the costs involved.

Do I need insurance if I am an employee?

If you are working as an employee rather than a contractor you won’t need your own personal cover but if you are planning on taking on jobs on the weekends or after hours it is important that you do take out cover. That way you are covered if an incident were to occur when carrying out this work.

Talking to a professional insurance broker will help you determine the level of public liability insurance you need to operate your business with peace of mind. If you need assistance in determining what is right for your business, please get in touch with the team at Norton & Co. so that we can help you get covered today.

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