Insurance for Electrical Contractors27/09/2017
Insurance is not the most exciting topic for discussion, however it is something that is almost universally held and subsequently paid for. With this in mind, it can be helpful to have a basic understanding of what it is and how it works.
Insurance for Electrical Contractors can be arranged through most brokers, not to mention a wide range of online options available. However, it can still be tricky to separate the good from the bad and determine what is and what is not covered under a policy.
Below is a checklist of key questions you should ask either yourself or your current provider to establish what you are currently covered for.
Employers’ Liability – This cover must legally be held by all companies with employees or persons working directly under the company’s supervision and control. Cover is almost always provided up to £10,000,000 and covers injury to employees.
Public Liability – Limits of 1,000,000, £2,000,000, £5,000,000 or £10,000,000. This cover protects you against claims made by members of the public, customers or visitors for injury or property damage.
Products Liability – This usually forms part of the Public Liability cover, and will protect you for injury or property damage claims arising from a product you have supplied or installed.
Professional Indemnity – This is essential cover for all contractors who carry out design work, and also important for those issuing wiring certification. Professional Indemnity covers negligent advice, design and specification including defence costs should false allegations be made against you.
Damage to Property Being Worked Upon – Many standard policies exclude damage to property being worked upon.
Specialist Extensions in Cover – These are only available from a handful of providers, and are specific to the electrical contracting industry:
Certification / Professional Negligence – Cover for negligent issuance of certificates, which is generally excluded under a standard Public/Products Liability wording. Even if the certificate was not issued negligently, blame can often fall to the electrical contractor in the event of a claimEfficacy – Cover for
Efficacy – Cover for failure of products such as fire or intruder alarm systems to fulfil its intended function. In the event of a claim, your client’s loss may have been substantially less had the product you installed worked.
Financial Loss – Cover for pure financial loss of your customer due to lost business, following failure to complete work by a given date and leaving your client unable to trade.
There are also several areas where insurers need to be informed for cover to be extended:
Working at Heights – What height do you work up to? What height restriction is on your current policy?
Use of Heat On-Site – Are you using heat equipment such as oxyacetylene, brazing or soldering?
Hazardous Locations – Are you working at locations such as hospitals, power stations, railway premises, underground premises, mines, docks etc?
Data Cabling – Do you carry out data cabling work?
Solar Panel – Cover for the installation of Solar Panels is rarely provided unless specifically disclosed to the insurer.
Sub-Contractors – Cover relating to sub-contractors can be complex and it is important to discuss this aspect with your insurance adviser.
It is vital that your policy is arranged on the correct basis, otherwise it may not pay out in the event of a claim.
- Am I covered for wiring certification?
- Am I covered for the failure of alarm systems to perform their intended function.
- Am I covered for pure financial losses?
- Am I covered for damage to property being worked upon?
- Am I permitted to work at hazardous locations? Which locations are excluded?
- Am I covered to use heat equipment on site?
- What height limit (if any) applies to my policy?
To discuss your insurance needs, please call Andy at First Insurance Solutions on 01634 662913.