Business Insurance For Electricians

Compare business insurance quotes for your electrician business with Savvy. 

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, updated on August 1st, 2023       

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We’ve partnered with BizCover to bring you a range of business insurance policies to help you compare them side by side.

When it comes to running a successful electrical business, protecting yourself and your clients is essential. That's where business insurance for electricians comes into play. As an electrician, you face unique risks and challenges on a daily basis, ranging from potential property damage to personal injury claims. Having the right insurance coverage can provide you with peace of mind and financial protection in case the unexpected happens. Whether you're a self-employed electrician or you run a larger electrical contracting company, business insurance can help safeguard your assets, cover legal expenses, and compensate for potential losses.

You can compare quotes for many types of business insurance right here with Savvy. Just answer a few simple questions about your work as an electrician and you’ll have multiple quotes from a range of respected insurers to compare instantly. Use our 100% free comparison service to help you get the best value insurance for your electrical business today. 

What types of insurance should I buy for my electrical business?

There are several types of business insurance you should consider if you’re an electrician, electrical contractor or running your own electrical business. These include: 

Public liability insurance 

Public liability insurance is essential for anyone working as an electrician, as you have such close contact with the public and their property. This is particularly important if you’re an electrician working directly for customers, rather than as a contractor who is hired by a larger company. 

Public liability can cover you against claims that your activity caused injury to a third party or damaged their property. This insurance can offer between $5 million and $20 million worth of coverage. It is a compulsory requirement on most building sites and also to tender for many government contracts. 

What it covers: 

  • Third-party personal injury claims 
  • Damage to a third party’s property 
  • Legal fees to defend yourself 

Professional indemnity insurance 

The greatest business risk faced by many electricians is liability risk. If something goes wrong with your switchboard wiring, causing a major fire, you could potentially face a costly lawsuit. Therefore, professional indemnity insurance is highly recommended for electricians who run their own electrical businesses.  

This policy covers you against claims that the electrical service you provided was negligent or fell short of expected professional standards. Cover is available starting from $2 million but can extend up to $10 million or more. 

What it covers 

  • Cover for your legal defence costs  
  • Payment of compensation if there’s a successful claim against you 
  • Payment of court-awarded damages to the litigant 
  • Cover for the cost of disaster investigations 

Portable equipment cover 

This form of insurance is available as an add-on to general business insurance and can cover all your trade tools and portable equipment, including expensive things like generators. There are two options available depending on what level of cover you are looking for: 

  • Insured events cover: only covers named events such as fire, theft, storms and collisions 
  • Comprehensive cover: includes the insured events listed above, plus other accidental damage to your equipment and tools 

What it covers: 

  • Fire, storm, water damage, explosion impact 
  • Accidental damage, malicious damage 
  • Collision or overturning of the conveying vehicle 
  • Theft following forcible entry to a vehicle or building 
  • Theft of equipment attached to a vehicle using locks or padlocks 

Personal accident and illness insurance  

Since you rely on your physical health and fitness to be able to do your job, taking care of your personal health should be a high priority for all people who earn a living working with their hands. Accident and sickness insurance can provide cover for you if you become sick and are unable to work, with a weekly replacement income available if you can’t work as a result of an accident or injury. 

What it covers: 

  • Loss of income as a result of sickness, injury or accident 

 Optional extras can include: 

  • Death benefits 
  • Disablement benefits 
  • Payment of business expenses during your recovery period

What isn’t covered under business insurance for electricians?  

The most common general exclusions include: 

  • Injury to yourself or your employees 
  • Flood damage 
  • Glass breakage 
  • Unlawful activity or criminal negligence 
  • Reckless behaviour or intentional damage 
  • Anything to do with asbestos 
  • The effects of pollution caused by your business activity 

Business insurance also does not cover your vehicle if you use your car for work, so you may need separate car insurance for commercial or business purposes. 

How much does business insurance for an electrician cost? 

There is no set cost for an insurance policy, as each applicant is different and faces unique risks. Many factors influence the cost of business insurance, including the following:   

  • The state you’re in  
  • Whether you live in a rural or urban area 
  • Whether you’re a sole trader, are in a partnership, or run a business 
  • Your business size and turnover  
  • If you have any employees 
  • Your insurance history 
  • Whether you’ve made an insurance claim in the past five years 

The main factor which will affect the cost of your insurance is the industry you’re in. All businesses in Australia are classified according to the risk their industry poses, and are allocated a risk ratio. These ratios are used by insurers to calculate the comparative risk of any one business compared to another. 

However, the cost of insurance also varies depending on where you live. For example, an electrician buying public liability insurance in Victoria may not receive the same quote as an electrician in Queensland. 

There are many more variables that will affect the cost of your public liability insurance, so the best way to find out exactly how much your insurance will cost is to get a free, no-obligation quote through Savvy so you have exact numbers to compare today. 

Why do I need business insurance as an electrician?

The risks faced by electricians are ever-present and, unfortunately, one simple accident or error can potentially result in very serious injury or even death. Therefore, all electricians need to have good insurance in place to protect not only their income but also their family in case a serious covered event does take place. This applies to builders and carpenters and other trades too.   

Having accident and sickness insurance in place can offer the peace of mind that comes from knowing your loved ones are protected in case you do have an accident which is covered by your insurance policy. Most tradies or small businesses have some contingency funds to fall back on, but these are rarely sufficient to cover the cost of a major catastrophe. 

For example, if you suffer a serious accident at work, you could be unable to work for months, but you’d still have your rent or mortgage to pay. If this happens and you have adequate insurance to protect yourself and your family, you’ll have a better chance of recovering financially and being able to provide for your family in the long term. 

Types of business insurance

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Frequently asked questions about business insurance for electricians

Will business insurance cover the work trailer I use to carry my electrical tools in?

No – business insurance doesn’t cover commercial vehicles and your work trailer is considered to be a commercial vehicle. The tools in your trailer can be covered if you take out portable equipment cover under certain circumstances, but the trailer itself will need to be insured under a separate commercial vehicle insurance policy. 

Are all my electrical tools covered by insurance up to their full value?

Not necessarily – there is usually a limit per tool in most equipment insurance policies, so it pays to read the fine print carefully and take out separate insurance for named items if any piece of your equipment is worth more than the single item limit.  

What information will I need to make an insurance claim?

The information you should have to hand when you contact your insurance company to make a claim will include: 

  • The name of the policyholder 
  • Your policy number and start date (which can be found on your Certificate of Currency) 
  • A detailed description of the incident (what happened to cause the damage or loss) 
  • Specific dates and times when the incident happened 
  • Contact details of any other parties involved (or witnesses to the event) 
  • Details of your police report number (if a crime took place) 
  • Details of the property lost or damaged (including its age and value) 
  • Your bank details for settling the claim 
How often will I have to pay insurance premiums for my electrical business? 

You'll be able to choose how often you pay your insurance premiums. You can either pay upfront all in one go for the year, or in monthly instalments. However, paying your insurance premium annually can be cheaper than doing so monthly. 

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Savvy is partnered with BizCover Pty Ltd (ABN 68 127 707 975, AFSL 501769) to provide readers with a variety of business insurance policies to compare. Savvy earns a commission from BizCover each time a customer buys a business insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via BizCover.

Savvy does not compare all business insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by BizCover or how their business works, you can read their Financial Services Guide.

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