Electricians just like any cadre of workers need insurance that covers them against the risks related to their work. An insurance cover is important because it helps protect workers from incidences associated with their work such as injuries, sudden dismissal, among others.
Types of Electricians insurance & how they work
There are several types of insurance covers that are designed for electricians. The most common among them is the public liability – simply because most employers demand that all their employees have it. Besides, public liability insurance is a must for all electricians before they are issued with licenses to operate in most states.
As an electrical contractor, public liability is the first type of insurance that you will need to consider. It is an insurance cover that protects you in case your negligence causes personal injury or property damage to a third party.
Most states require individuals to have this public liability insurance before they are issued with a license to operate. A third party, in this case, maybe your client or a member of the public. If the person affected by your negligence is one of your staff, then the terms of the cover will differ depending on the policy.
It’s important to talk to your insurance agent or broker to find out the terms of your insurance cover. Claims for property damage are easy to handle.
Consumer protection insurance
A consumer protection cover is almost the same thing with public liability insurance. In fact, some states, electricians are supposed to have at least $50,000 in consumer protection insurance. It is an insurance that’s often included in a public liability policy.
However, not all public liability policies consist of consumer protection. It is an option that some insurers have. It’s always important to notify your broker in case you need it.
Contract works insurance
Although contract works insurance is not a mandatory insurance cover for all electricians, it’s always important to have it. In most cases, this type of insurance is required if a person is taking large contracts although even smaller contractors might need it.
As an electrician, you are always going to have a van full of gear consisting of power tools – a perfect target for thieves. There’s no doubt that you will try as much as possible to protect your tools – but can you be 100% guaranteed?
Tool insurance will generally cover your gear not only from theft but also damage or loss resulting from a vehicle’s collision or fire. However, when it comes to theft, it’s important to understand that most insurance companies compensate only losses that are brought by violent or forced entry to access your tools.
Commercial vehicle insurance
Most electricians use vehicles to operate – this means that their vehicles are part and parcel of their businesses. You probably understand the importance of insuring a vehicle, but do you know the real importance of insuring a vehicle meant for business?
Besides the normal vehicle insurance, it’s important to have another separate insurance for your business vehicle. If you are going to take the basic car insurance alone, then it will be good to inform the insurance company that your car will be used for business purposes. Failing to do so may haunt you later with a claim form the insurance company.
Income protection insurance
Most electricians do not have access to conventional employee privileges such as sick leave or worker’s compensation. As such, it will be prudent to ensure your income.
There are several insurance companies that have tailor-made insurance covers for electricians and other workers form the informal sector. Ensure that you choose an insurance cover that will cater for your future financial needs.
This is another insurance cover specifically designed for electricians. Most people prefer working alone without many expenses such as business premises, several employees and so on. Nonetheless, if you have decided to scale up your business, then you should consider getting a business package insurance.
Most insurance companies and brokers offer a business package consisting of the following:-
• Public liability & tools
• Business interruption
• Commercial motor(as well as fleet)
• Machinery breakdown
• Contract works
In a nutshell, tiling insurance is important to electricians and all other independent contractors. Insurance companies not only protect your business but also give you peace of mind.
Eric Reyes is a content writer appearing on more than 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.