Business Insurance suitable for Electricians

What kinds of Business Insurance products are available for electricians?

This article will outline some of the main types of policies that electricians might decide to think about when considering business insurance:

• Public liability insurance
• Personal Accident
• Tax Audit insurance
• Portable Equipment insurance

We’ll also help you find and compare a range of providers which may help you find a suitable insurance policy..

Public Liability Insurance

Energy Safe Victoria outlines that registered electrical contractors must hold a current Public Liability Insurance (with a minimum cover of $5 million) against personal injury and/or damage to property in connection with the electrical work carried out by you, your employees or your contractors.

Public Liability insurance is designed to help provide protection* for you and your business in the event a customer, supplier or a member of the public are injured or sustain property damage as a result of your negligent business activities.

This doesn’t have to be gross negligence either. It could be a minor mistake that causes an expensive problem. Even a slip of a screwdriver that gouges expensive wallpaper can end up being a costly issue.

Either way, you could be left with a hefty bill because you, as the business owner, are legally responsible and could end up with big legal and compensation costs.

What does Public Liability Insurance normally cover?

Public Liability Insurance varies slightly between providers but generally covers the following things (depending on policy limits):

• Legal costs: These can mount up during a claim, even a simple one (ever seen a poor lawyer?)
• Third party injury: This is injury caused to a customer, supplier or member of the public either on your business premises or as a result of your alleged negligence.
• Property loss or damage: This is other people’s property that was under your control for business purposes. It can also help cover loss or damage of such property while in your business vehicle.

What does Public Liability Insurance not normally cover?

It’s essential that you check the fine print of any policy to see what’s included and what’s not. Some of the more common things not covered by Public Liability insurance include:

• Damage to your own/business property.
• Injuries to your own employees: and things covered by your workers’ compensation.
• Fines or Punitive Damages: you won’t be covered for your alleged
negligence beyond victim compensation, so if the court issues a fine or punitive damages, this will not be covered by public liability.
• Putting bad workmanship right: The costs of making good a bad job, fall on you, not your public liability insurance.
• Aviation products: If you’re an electrician dealing with aircraft, you will probably need to take out a specific ‘Aviation Insurance’ policy to get cover.

You also won’t be covered for any events that happen before or after the period of the policy, so make sure you keep your policy up to date.

As previously stated, Public Liability Insurance can be compulsory for Australian businesses depending on what state or territory you do business in, and it’s wise to know the ins and outs of your policy. Finding out you’re not covered for something when it’s too late can be very costly.

Personal Accident and illness Insurance

Like many electricians, your business could be just you who’s handling all the work. So, what’s going to happen to your income if you suddenly can’t work due to accident or illness? Probably, not a lot.

That’s why you may want to consider having your income covered by accident or illness insurance.

Personal Accident and Illness insurance* can help provide levels of cover for loss of income if you are unable to work, permanent disablement and even death as a result of an unexpected injury or illness (even if it occurs outside of your employment).

By covering your income for a period of time whilst you’re out of action, you might not have to live with the stress of not having cash coming in. That way, you can concentrate on making a full recovery and getting back to work.

As with all insurance, Personal Accident and Illness insurance covers some things, and not others.

What is typically included?

• Loss of income as a result of an injury
• Loss of income due to an illness
• Loss of income because of injury or illness (combined)
• Some policies may offer options to include cover for things like death, disablement and business expenses.

What is typically not covered?

• Pre-existing conditions: Or injury or illness: that is the result of pre-existing conditions, or pregnancy/childbirth.
• Injury or illness caused by an intentional criminal act, caused by you.
• Alcohol or Drug related illness or injury.
• Injuries resulting from professional sports and motor sports

These inclusions and exclusions vary between providers, so check any policy carefully before you sign up, and make sure you know what you’re covered for.

Tax Audit Insurance

Tax Audit Insurance covers a business for specified costs in the event that it is selected by the Australian Tax Office for auditing. The policy offers coverage for the costs of accountants and other nominated professional fees incurred in the course of an audit.

It can happen to any business at any time, and the fees can mount up. A Tax Audit insurance policy can help cover some of the costs in the event you made a mistake along the way

What is typically included?

• Accountancy fees
• Tax agent fees
• Limited other fees for professionals to responding to a tax audit

What is typically not covered?

• Fines or taxes imposed
• Your time or salary or lost opportunities
• Your employee’s time or wages

When you consider how much your accountant charges and how long an in-depth ATO audit could take, it may be worth considering Tax Audit insurance.

Portable Equipment Insurance

Electricians rely on all sorts of equipment in order to carry out their work. Whether it’s specialist electrical gear, tools or general business equipment.

It can be a real setback if you damage or lose some of your gear.

Portable equipment or general property insurance can be part of your business insurance package and can help cover specified items such as tools, business equipment or electronic items. You can choose between comprehensive cover which can include accidental damage cover or insured events cover (for events such as fire, theft by forcible entry, explosion or storm).

As always, check your policy for exactly what is covered and what isn’t covered but here are some general inclusions and exclusions.

What’s typically covered?

Loss or damage that is caused by:

• Fire, storm, water, explosion, impact or malicious damage
• Accident involving the conveying vehicle
• Forced entry theft from locked vehicles or locked buildings
• Theft of equipment securely attached to a vehicle by locks or
• padlocks

Specified portable equipment can include items such as:

• Mobile communication equipment, including telephones and radios
• Electronic equipment, including computers, diaries, GPS units

What’s typically not covered?

Loss or damage to your portable equipment that is caused by:

• Wear and tear
• Cracking, scratching, or breakage of fragile items or surfaces
• Rust, oxidation, mildew, mould, moths, insects, vermin, dry rot, contamination or pollution
• Any process of heating, drying, cleaning, dyeing or alteration to any insured item
• Faulty materials or workmanship
• Theft by employees
• Unexplained inventory shortage

Looking for a suitable business insurance policy?

iSelect has partnered with BizCover to make it easier for electricians to find a suitable Business Insurance policy. Get started by comparing online today!

Last updated: 15/03/2022