Category Archives: insurance

Electricians Insurance

Electricians InsuranceIn addition to the mandatory public liability cover that is required for an electrical contractors licence, there are a number of other covers that an electrician should consider.

In this guide we will take a look at the various forms of insurance available to electricians that can help to protect you, your business and your family.

Public Liability Insurance

All electricians with a Qld electrical contractors licence will be familiar with this form of insurance, as it is mandatory in order to obtain the licence.

This cover is designed to protect you and your business in the event that your work results in property damage or personal injury to a customer or member of the public.

Your public liability policy must also include consumer protection insurance in line with the Queensland licence requirements.

Income Protection

For any self-employed electrician income protection insurance should be considered a must.

If you don’t have access to sick leave or workers compensation, this form of insurance is the only way to keep the money coming in if you cannot work.

An income protection insurance policy can replace up to 75% of an electrician’s income for a period of time whilst they are unable to work, and depending on the options chosen it can continue paying you each month until you turn 65.

Income protection is not mandatory for an electrical contractors licence, however it is mandatory on certain worksites for anyone who is self-employed or subcontracting.

Tool Insurance

This is another form of insurance which is not mandatory for electricians, but it is certainly a very popular and useful form of cover.

As an electrician you’ll no doubt have a fairly decent collection of tools and equipment, and most sparkies are surprised at the final replacement cost when they tally up all of their gear.

Too insurance can cover the cost of replacing your gear in the event of fire, storm or vehicle collision damage, as well as theft from a secure location such as a locked van or toolbox etc.

Other Forms of Cover

Other forms of insurance which electricians can benefit from include business expense insurance, life, trauma and TPD insurance.

For more information about these four forms of insurance (as well as income protection) can be obtained from any qualified financial adviser.  The other two forms of cover (public liability and tool insurance) can be obtained through an insurance broker or directly from an insurer.

Insurance Cost & Quotes

Certificate of CurrencyIf you’re applying for or renewing your electrical contractors licence in Qld you know you’ll need insurance, but how do you know how much to pay?

All insurers have different ways of pricing their policies, and depending on which one you go through, you could be paying a lot more than you need to be.

In this guide we’ll take a look at what your public liability cost should be and how you can find the best deal.

Steps

There are three main steps involved in finding the best deal on your electrical contractors licence:

  • Determining your needs
  • Researching the market
  • Negotiating

We will look at each step below in more detail.

Determining Your Needs

The very first step is to determine what your needs are.  The more you know upfront, the better your changes are of getting a good deal.

As an electrical contractor in Qld your minimum insurance requirements will be as follows:

  • $5,000,000 broadform liability insurance (public and product liability)
  • $50,000 consumer protection insurance

You can read more about the insurance requirements for Qld electricians by following this link.

Some electrical contractors may need additional cover depending on the type of work they are doing.

If you plan on doing work for any specific organisations, ask them if they are happy with the minimum $5 million cover or if they need a larger amount.

If you are unsure of your needs you should speak with an insurance broker who specialises is looking after tradespeople.

Researching the Market

Once you know what you need the next step is to research the market.  You could simply call this ‘shopping around’ but there is a bit more to it.

The requirement for consumer protection insurance is unique to Qld, and not all insurers and brokers are able to offer this form of cover.

When you are doing your research and shopping around, be sure to ask that the cover includes the consumer protection endorsement specifically for the Qld electrical contractors licence.

To save you some time, the following insurers are known to have the consumer protection option, but you still have to specifically ask for it rather than relying on them to include it.

We have to stress that you MUST ask the insurer for the Qld electrician endorsement and confirm that they can provide the government approved certificate of currency, otherwise your policy will be worthless.

Negotiating

The final step is to negotiate!  Most insurers will not budge on their pricing, but if you use an insurance broker you may find that they are able to offer a better deal.

To find a suitable insurance broker try searching Google for ‘electrician insurance’ or similar and you should find a few options worth checking out.

Once you have your new policy in place you will be ready to apply for or renew your electrical contractors licence.

Public Liability Insurance

Any electrician looking to get licensed as an electrical contractor will need to take out a public liability insurance policy of some form.

The requirements can differ slightly from state to state, with Queensland having the most specific requirements when it comes to insurance.

What is Public Liability Insurance?

Public liability insurance provides electricians with cover in the event that their business activities result in property damage or personal injury to another individual or entity.

If a person makes a claim against you or your business for personal injury or property damage, your public liability insurance policy will cover the costs, rather than you having to come up with the money on your own.

A public liability policy will not cover every single incident that an electrician could potentially be involved in, but it will cover a huge range of events which are commonly suffered by electrical contractors in Qld and elsewhere in Australia.

Queensland Requirements

As with most Australian states, electrical contractors in Qld must hold public liability insurance.   Furthermore, the policy must include a special option known as consumer protection insurance.

Consumer protect insurance is a special inclusion available in a small number of public liability policies issued by selected insurance companies.  Qld electrical contractors must hold a policy with at least $50,000 in consumer protection.

Quotes

There are a number of insurance brokers offering public liability insurance in Australia, as well as the specific cover required by electricians in Qld.

We can put you in contact with a broker who may be able to assist you.  For more information please visit our insurance requirements page and follow the links.