Are you paying a fair price for your Electrician Insurance?

Read on and get the right insurance cover!

CoverTradie insights on pricing of Public Liability Insurance for Electrical Contractors will help you get an idea of what prices are being offered and what you should accept. See chart below:

electrician insurance comparison
Small business here means a turnover of $100,000. Prices for $20M public liability cover.

After reading this article you will be able to get an understanding of how prices track for your trade, make an informed decision on whether the price being offered to you is a fair price and avoid getting ripped off by someone intentionally or accidentally.

How much does Electrician Public Liability Insurance Cost?

There are a large number of prices available in the market. Most insurers see Electricians as a lower risk occupation compared to some other trades, but some insurers don’t. This results in price variations. The table below displays that variation in the cheapest, average and highest prices we observed. See below:

CategoryCost
Cheapest $528
Average$875
Highest$1351
1. Small business with an estimated turnover of about $100,000. Prices are for $20 million Public Liability Limit. Lower limits are cheaper but we’ve kept our research to $20M as thats the limit usually required if sub-contracting to other businesses. Source: CoverTradie Research

Knowing which insurers price electrical contractor businesses favourably is very important.

Imagine how much more would you pay extra over the years if your broker was not able to find the cheapest price but only something that was close average premium. You’d be paying a LOT! Let’s explore further.

So where do you get this cheap Electrician public liability insurance?

The cheapest price was in South Australia but you wouldn’t be surprised to know that prices vary a bit depending on what state you are in.

Does Sydney take the honours for most expensive insurance for electricians? Given everything else in Sydney is just more expensive like real estate, cost of living etc. then insurance should be too?

Not the case for Electricians. Queensland takes the honours but NSW isn’t far behind.

The cheapest price in Queensland was $862. This means that electricians with a similar size business in Queensland pay about 63% higher for their insurance compared to their South Australian colleagues.

Now some of that has got to do with market conditions like the cost of doing business in particular states or the volume of claims, the consumer protection legislations have a significant influence.

Queensland Electrician legislation influences the insurance premiums significantly, where electricians pay much more as much compared to other states.

public liability insurance electrical contractors qld

That is just the start of the story, there is more to it which can be observed from the table below.

StateCheapestAverageHighest
SA$528$761$991
WA$604$766$982
VIC$645$845$1,264
NSW$728$949$1,323
QLD$862$1,085$1,351
Small business with an estimated turnover of about $100,000. Prices are for $20 million Public Liability Limit. Lower limits are cheaper but we’ve kept our research to $20M as thats the limit usually required if sub-contracting to other businesses.
Source: CoverTradie Research

Key points to note from this table are:

  • NSW prices for Electricians are reasonably high also.
  • There is a saving of around $200 between the cheapest and average no matter what the state is.
  • If you happen to be in Victoria and you were on a highest priced insurance, you’d be paying almost double the cheapest. Often people get sold higher price policies because they are fearful and want the full protection. We make it clear that the price comparison here is for the same type of policy i.e. no difference in coverage between cheapest and the highest priced policy.

With knowledge, its easy to save $500-$600 dollars depending on what your business size is. Lets explore further.

What happens to the price of insurance as your business grows?

Regardless of what state you work in, as the business grows, the risk of claims also increases. Insurers know that and hence they increase the premiums as your business grows. See chart below:

electrician public liability insurance cost

Insurers consider that insurance risk increases as a business grows?

During the growth phase of a business, the attention of many tradies gets a little stretched. Not everyones’ but some. That can result in claims and insurers know that. They price the insurance accordingly.

For many business owners, it’s the apprentice supervision that is a problem. Its not uncommon to see the claims increase with increased number of staff and junior apprentices

The controls & risk management in a business that prevent claims and stuff-ups become strong over time. There is a period when they are weak which result in claims.

You can’t control what insurers think and how they price insurance. You can make a choice of insurer and your broker. That will save you money.

The importance of the above statement is further demonstrated by this chart below. It highlights that the cheapest polices save a lot of money in the long term.

Notice how the premium of Cheapest Price Category at $400K turnover is the same as $200K turnover for the Average Price Category(redline).

public liability insurance quotes electrician

In all, select a broker who knows what they are doing so they can help you get where you want to – FASTER.

CoverTradie is a specialist insurance broker for tradesmen. If we can be of help to you, please give us a call. If you found this article useful, please consider sharing it on Facebook to help us get the word out.

What does Electricians Public Liability Insurance Cover?

When you run an electrical contracting business, there is always a risk that your work could result in damage to someone’s property or even cause an injury or someone’s death.
In a scenario like that, somebody can sue you for financial costs. Your public liability insurance comes in handy to protect you against financial loss in an event like that.
Example: You replaced the wiring of an old property and that was done during a busy period where some apprentices work didn’t get checked properly. There was a short-circuit later which resulted in a fire and the house gets burnt down.
In a scenario like that, your public liability insurance will protect you.

Which insurer offers the best Public Liability Insurance for Electricians?

This one is a very subjective question. Is it best in terms of price, coverage or claims service.  Where there is no variation in the policy coverage, obviously the lower the price the better it is for the customer.

CoverTradie always finds you the cheapest deal unless there is serious service issues from the insurer perspective that we may have experienced.

Every broker will have a different experience with different insurers that why you often hear them say “This insurer pays the claims.” It is important to note though that all insurers have to abide by the rules set by AFCA for any disputes that arise, which means that if there is a dispute and the policy wording has to cover a claim, insurers can’t get away with it. As you broker, we act as the go between anyway. We keep them honest. That’s our job. 

Can I pay my policy by the month?

Yes, with CoverTradie you can pay by the month. Give us a call.

CoverTradie