What is electricians insurance?
Electricians insurance requirements can be varied, which is why we always tailor policies to our clients requirements. Two of the most likely and valuable covers are Professional Indemnity (PI) insurance and Public Liability Insurance.
What is professional indemnity insurance for electricians?
Professional indemnity insurance is a type of cover to protect your business if you provide designs, specifications, advice or instructions as any part of your job.
Where you design electrical systems, supply or recommend particular equipment, or even just make decisions on site about how you’re going to install an electrical system or appliance, you’re effectively offering professional advice. You can be held accountable for that advice should something go wrong.
Taking out professional indemnity insurance is essential for electricians. It protects you from costs in the event that a client or main contractor that you work for alleges that they have suffered financial loss as a result of your professional advice.
An example would be where you have been working in a commercial property, office, hotel, etc. and you made a slight alteration to the installation spec based on your own experience, but that is subsequently rejected by the client. Your electricians PI insurance policy would provide cover for the cost or re-doing the work and any disruption to the client’s business.
What kind of business needs professional indemnity insurance?
If you’re a company or self-employed person who provides professional services, recommendations or advice, and might be unable to cope with the expense of defending a costly claim, professional indemnity insurance could be an incredibly important investment. Although it isn’t required by law, it is often required by regulatory or professional bodies. Plus, many companies find it instils a degree of confidence and credibility in their organisation and the work they do.
What is public liability insurance for electricians?
Public Liability is the second main part of electricians insurance requirements. Public liability insurance for electricians protects you in the event that a member of the public alleges that they have suffered a loss, injury or illness as a consequence of your work.
For example, if you have worked at a client’s home and accidentally left a wire exposed which resulted in your client being injured and seeking compensation, your public liability insurance covers the compensation payments, as well as any legal expenses.
What is Efficacy & do I need it?
Efficacy insurance, also commonly referred to as inefficacy insurance, is designed to protect you should a product you install fail to perform its intended function. That is why the cover is also referred to as “failure to perform” insurance. If this failure to perform causes harm to your customer or their property, or even a third party, you could be liable and may even find yourself facing a potentially costly claim.
When you offer a specialist product or service, your reputation as a business is vital. Efficacy cover could provide an extra layer of protection for you, as well as your customers. Facing a claim without the right insurance in place could be costly both financially, and to your reputation. Claim example: A fire that spread its way through a building causing damage throughout and virtually destroying the whole building. It was later established that due to a failure in the fire alarm system, the fire service was not alerted until around five hours after the fire was first detected.
Some of the other more standard covers are outlined below:
- Electricians Employer’s Liability Insurance (a legal requirement)
- Electricians contract Works Insurance
- Electricians Contractors All Risks
- Electricians Tools Insurance
- Office Insurance for Electricians
- Commercial Vehicle Insurance for Electricians
- Motor Fleet Insurance for Electricians
- Legal Expenses Insurance for Electricians
- Electricians Directors & Officers Liability Insurance