Many Electricians find they are under-insured or spending too much on their insurance.
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Electrical Contractors that we help out regularly:
- Electricians that are just starting out but are serious about getting the right cover.
- Established Electricians with other brokers that need someone specialist in trades insurance to do things properly.
- Electricians who are unhappy with DIY Insurance, we can fix loose connections and make your insurance secure.
Regardless of what category you fit in, there’s opportunity to improve things and that’s what we are here for.
If you just want to understand what Electrician Insurance is, what are the various risks that need to be considered, and how to sort out insurance properly, this is a good place to start. To get a good overview. The information here is designed to be high level and generic but is quite useful.
If you need specific help to suit your personal circumstances, please give us a call.
Things to consider when getting Electrical Contractors Insurance
There is a one dimensional view and a multi-dimensional view for Electrician’s Insurance.
When people talk about Electricians Insurance, they often mean Public Liability Insurance for Electricians, but did you know there is no such thing as Electrician Insurance.
It’s just a general term that has been used in the trades circles for a while and has now become a thing.
Thinking about the Electrician’s Insurance as just the Public Liability Insurance for Electrical Contractors will be the one dimensional view.
Here at CoverTradie, we believe the definition for Electrician Insurance should be much more broader than that. In the paragraphs below, we discuss and explain why we believe that to be the case.
The goal of a properly done Electrician Insurance Program is to help you avoid Insurance ShocksCoverTradie
The only way to avoid these “Insurance Shocks” is to think through all the risks that apply to your Electrician business.
Risks are absolutely important in life. They say “No Risk – No Reward”. We all tend to have an internal scale of what Risk is for Us and we act accordingly.
For some people tolerance to any risk is very low, perhaps linked to their psychology or financial circumstances. These people want to get insured for every little risk.
For others, the tolerance to risk is very high. We’ve seen many people take too much risk with almost a careless attitude. These people just avoid insurance and rely on “She’ll be right” mindset.
Extreme risk perception, i.e. too high or too low can get you into some sort of difficulty, whether it’s due to the financial cost that comes with trying to manage all sorts of risk or the losses that result from not managing the risks at all.
Fortunately, these days, you don’t have to rely on just gut feeling. You have insurance brokers like CoverTradie to help you understand the risks in business better and help you make an informed choice for your insurance.
The end result – Longer term benefits that rely on data rather than just “gut feeling.”
On that note, we’ve got a few things to talk about:
The risks in an Electrical Contractor Business Insurance program can be broadly classified into 3 categories.
- Personal Risks
- Asset Risks
- Business Risks
Personal Risk – Managing your most important asset, YOU.
The importance of managing your personal risk cannot be denied. The end goal of every business pursuit is to enhance the quality of life and to gain a sense of self achievement.
To be able to enjoy that quality of life, we need to be in the best of health both physically and mentally. Working in Trades industry exposes people to a higher level of physical stress at least if not mental stress, although some would argue that the mental stress is higher also.
Technical & Trades workers have the highest rate of injury compared to any other occupation in Australia, we have data to prove that. See the chart below provided by ABS.
Not only that, we see posts on facebook and instagram where tradies share photos and stories of them getting hurt. Not only that, there are often news reporting serious injuries or even death of Trade people.
Electricians run the risk of serious injury or death even more than so some of the other trades since they play with live wires. See some of the examples we found.
There’s another example from a while ago. Unlike the one in Croydon, where the electrician was working in a cramped state, under the house, where you could imagine that he may have been disadvantaged to assess the dangers, the one below was on the roof top of a shopping centre.
The problem is that sometimes, regardless of how careful you have been, accidents happen. There is some risk in life that can be removed and that risk needs to be managed, often by the right insurance.
Personal Accident Insurance is really important for Trades people, particularly Electricians
Personal Accident Insurance helps you protect your income, should you become injured (or sick – optional cover applies) and unable to work. You can also get protection in the form of a lump sum payment. Please give us a call if you have questions in your mind. We’d be delighted to help you out and organise the right insurance for you.
Income Protection Insurance For Electricians is a must.
Business risk are often the first ones that people like covered. We often see people want to get their Public Liability Insurance sorted before they insure themselves. They may also cover their tangible assets like tools, earthmoving equipment etc. before anything else.
Why? Because our risk perception usually is a bit “High” for business risks. Let’s have a look at them in a bit more detail.
Very basically, the business risk can be broken down into two categories: Asset Risks & Liability Risks. That’s not to say other risks don’t apply to business, we are discussing from a very basic view point. Of course for larger and more mature businesses, the spectrum of risks is quite broad.
Asset risk is the easiest risk to perceive. After all, a tangible thing like a tool, a vehicle or some stock has an intrinsic value. That value can get destroyed if the item is stolen or damaged due to some even like a fire or due to an accident like a vehicle in a crash.
The assets that small business electricians are likely to have are their vehicles, vans or utes. These vehicles are often fitted out with drawer systems and shelving which increases the actual dollar value of your vehicle not just makes your job easier.
Tools – mostly electronic testing equipment is the one that is really at risk.
Stock – This may be the small amount of stock you carry in your vehicles, cables etc.
Building and Stock/Contents at premises. Depending on how big your operations are, there could be stock in your factory that needs insurance as well as if you own the building, you should have that insured. In many instances, the rental premises could also require insurance depending on what’s in your lease.
Liability risk arises when you are responsible for damage to someone’s property or causing an injury or someone’s death in the course of running your business.
An example of a liability claim for an electrician business would be: You’ve undertaken a project to re-wire a home, an apprentice didn’t quite do the job that well and left a loose connection which has later on sparked and set off a small fire.
This has done a small amount of damage – a rather good outcome if things are put in perspective because often these types of sparks can result in some serious damage and total losses.
Insurance companies that suffer the loss then seek to recover the money from “someone” else and Electricians are the first in the “firing line”.
This is where your public liability insurance comes in handy.
Frequently Asked Questions (FAQ)
Yes, you sure can. When we organise your insurance, you will see the monthly payment option on the invoice and the various methods through which you can pay your insurance.
Electricians Insurance is a general term for a group of insurances suitable for electrical contractors. The commonly done insurance for electricians are:
– Public Liability Insurance
– Commercial Vehicle Insurance
– Tools Insurance
– Personal Accident Insurance
Some Electricians are always looking for the cheapest insurance and they often think cheapest is the best. From our experience we can tell, it’s not always the case.
There are insurers who prefer certain occupations more than others. There are insurers who offer a cheap price but put in a lot of exclusions in your Electrician Contractors Business Insurance which make the policies useless. They are surely to be avoided.
The key to get it right is finding the right policies that offer the right cover and selecting the best premiums amongst them. Claims service also matter of course.
CoverTradie has excellent working relationships with many large insurers and specialist underwriting agencies. We can help you save money and also get properly covered.