Professionals are hired at residential and commercial sites to carry out electrical work such as panel upgrades, replacing faulty wires, and fixing damaged or non-functional outlets to prevent the risk of electrical hazards. However, working in an environment full of live wires and active circuits is a risky job.
These engineers put their lives at risk to save us from electrical mishappenings. Therefore, electrical service providers must get electrical contractors insurance. Liability insurance saves you from financial risks that occur because of injuries and accidents. Below, we are going to discuss all the things that are covered under liability insurance.
What is covered under electrician insurance?
Liability insurance saves electrical companies from financial losses, risks and penalties that may occur because of faults and accidents. Below, we have mentioned 5 important things that are covered by an electrician insurance policy.
1) General Liability
Whether you are a self-employed contractor or an electrical company, every certified electrical service provider requires general liability insurance that covers basic needs. This includes injury or damage caused to someone while carrying out electrical services at the site.
2) Tools and equipment
Business electrician insurance also covers damage caused to your tool and equipment due to fire. Moreover, it includes tools lost, damaged or stolen while performing electrical work at the job site. However, this covers tools that have been in use for not more than 5 years.
3) Workers compensation
This involves paying for medical expenses if your electricians in London get electrocuted or injured while providing their services at the site. This medical service not only covers medical costs but also covers lost wages and disability payments.
4) Commercial Auto
This insurance plan also covers all the commercial vehicles that your business uses to travel to different work locations. The plan covers collision insurance, stolen vehicles and vehicles damaged in a car accident.
5) Errors and ommissions
One of the things that you need to be prepared for in this business is disagreements with the client. Business insurance for electrical contractors covers the professional liability that you may have to bear if the client accuses you of malpractice or negligence.
What are the things not covered by a liability insurance policy?
Certain things are not covered in an electrical contractor insurance policy. This includes damage caused to the business property due to natural calamities like floods, earthquakes and wildfires. Some other things that are not covered under this policy are infectious diseases, intentional fraud and government seizure.
So, this was all about liability insurance and all the risks it covers. It protects against the financial risks that may occur due to physical injury or damage to someone else’s property. The policy also covers medical bills, legal fees and auto accidents.
FAQs
What insurance does a self-employed electrician need?
A self-employed electrician requires general liability insurance. It protects you against the financial risks that may occur if you accidentally hurt someone while performing your job at the site.
How much professional indemnity insurance do I need for an electrician?
Electrical companies require a minimum professional indemnity cover of £250,000. If the claim is successful, errors and omission insurance also covers compensation, expenses and defence costs.
Is it illegal to carry out electrical work without a license in the UK?
Even if an individual is not certified as an electrical engineer, he can perform electrical jobs by notifying the building control team. However, it is advisable to hire a registered electrician to carry out commercial and household electrical work.
