Working as an electrician comes with risks, whether operating as a sole trader or a contractor. Having the right electrician insurance helps protect your business against legal actions, insurance claims, and unexpected costs.
We explain why insurance is designed for electricians, what it can cover, and why both sole traders and contractors should consider it.
Why Insurance Matters for Electricians
Electricians work in homes, shops, and offices. Mistakes or accidents could happen at any time. This might include:
- Injury to a customer or member of the public
- Property damage from faulty work
- Stolen tools or broken equipment
- Claims linked to advice or professional service
Without insurance, these incidents could leave small businesses facing large bills. Electrician insurance offers financial protection and peace of mind if a claim arises.
Essential Insurance for Sole Traders and Contractors
Public Liability Insurance
This is often seen as the main cover. Public liability insurance helps protect against claims if someone is hurt or property is damaged because of your work.
Example: Drilling through a pipe during a job and causing water damage.
Professional Indemnity Insurance Cover
Electricians offering advice, designs, or specialist services could benefit from professional indemnity insurance cover. It helps protect against claims of professional negligence.
Example: A customer claims your advice on a wiring setup caused them financial loss.
Tools and Equipment Insurance
Many electricians rely on expensive tools. Insurance can cover theft, loss, or damage to these items.
Example: Power tools stolen from a locked van overnight.
Employers’ Liability Insurance
If you hire staff, employers’ liability insurance may be a legal requirement. It covers injury or illness claims made by employees.
Note: This is not usually needed if working completely alone as a sole trader, but it depends on the setup.
What Level of Cover Might Be Needed?
The right amount of cover depends on:
- Business size
- Type of projects
- Value of tools
- Contract requirements
Some clients or contractors may request proof of a certain level of cover before offering work. This applies to both sole traders and small business contractors.
Sole Trader vs Contractor: Does It Make a Difference?
While the risks may feel similar, there are some differences:
- Sole traders often work alone, focusing on smaller jobs or domestic projects.
- Contractors may take on larger contracts, involving teams and higher-value work.
Both setups face public and professional liability risks, as well as potential legal actions.
Where contractors employ others or handle bigger projects, extra types of cover such as contract works insurance might also apply.
Why Arranging Insurance Through a Broker Can Help
We help both sole traders and contractors find tailored insurance. This includes support in arranging the right:
- Type of cover
- Amount of cover
- Professional indemnity insurance cover
- Public liability insurance
Our aim is to help make sure electricians have financial protection that fits their business, whether that means a one-person setup or a larger contracting team.