Insurance for Electrical Contractors

Here in Australia the licensing of electrical contractors is administered by each of the individual states and territories.

Each state and territory government has in place insurance requirements that electrical contractors must meet in order to apply for or renew their licence.

Unfortunately some of the states have different requirements for electricians insurance, which can make it a little tricky for electricians trying to get their insurance matters sorted out.

Here at Tradesman Insurance we specialise in insurance cover for electricians, and in this guide we will take a look at some of the requirements around Australia.

Public Liability Cover

The main form of insurance required by electrical contractors is public liability.

You can learn more about public liability insurance on our dedicated page (follow the link) but in a nutshell it protects your electrical business from the costs of a claim involving personal injury or product damage that is suffered by another person due to your actions.

Most states require a minimum of $5 million cover for public liability, however some building companies will require that their electrical contractors hold a higher amount of $10 or $20 million.

Queensland Electricians

The Queensland State Government has put in place different rules for anyone applying for an electrical contractors licence in the state.

In addition to holding a minimum of $5 million public and product liability insurance, electrical contractors must also hold no less than $50,000 worth of consumer protection insurance.

Consumer protection insurance can only be taken out with a public liability policy, and is only available from a selected number of insurers. Two of the largest insurers offering this cover are QBE and Vero.

What about Product Liability?

Most Australian states also require $5 million product liability insurance for electricians. This cover is included in virtually all public liability policies, and therefore a separate policy is not required.

Other Insurances

Although public liability insurance is the only one that that is mandatory for electrical contractors, there are a number of other insurances that are also worth considering.

Depending on which worksites you work on, the building company may require that you hold income protection insurance. You can find out more about income protection insurance by following the link.

Another popular insurance for electricians is tool insurance. Electrical contractors generally have a valuable set of tools, and having to replace them due to theft or damage is not a nice thought. Tool insurance can cover the replacement cost of your tools in a variety of situations.

If you’re an electrical contractor looking to get your insurances in order, why not contact the Tradesman Insurance professionals for an obligation free quote. To get in touch with us please call our office or complete our online quote form.