Public liability Insurance is mandatory for most tradies- especially electricians in Australia!
Some tradies can choose if they want to take out Public Liability Insurance whilst for others, like electricians, it can be mandatory to have this insurance in place.
In some states of Australia, it is compulsory for electricians to have Public Liability Insurance in place before they are able to get their licence. For other electricians, they will need to have Public Liability Insurance in place before working for companies as subcontractors.
Either way, Public Liability Insurance is a serious consideration for electricians.
Licence requirements for electricians
In most Australian states, electricians are required to hold an electrical contractors licence before they carry out domestic or commercial work. In some cases, states will also require that you have Public Liability Insurance before you are formally given your licence.
You will generally need a minimum of $5 million Public Liability Insurance and this can be more depending on the type of work that you’re doing.
If you work as an employee rather than a subcontractor, you will generally be covered by your employers Public Liability Insurance. However, if you work as a subcontractor or do any work on the side, you will need to have your own Public Liability Insurance.
What will Public Liability Insurance cover?
Public Liability Insurance will cover damage to property or another person that has occurred as a result of your work as an electrician. It will protect you or your business financially from the cost of a claim if any damage occurs.
If damage to property or another person occurs and you are found financially liable after a claim is made, you will be required to pay the amount of the claim. This can place huge financial strain on you and your business, especially if the damage has been significant.
The cost of a claim can include repairs, replacements, rehabilitation, medical bills, loss of income, and any other forms of compensation. Given the often risky work that electricians undertake, it’s important to have Public Liability Insurance in place so you’re covered if the unexpected happens.
Electricians working in Queensland
If you’re an electrician in Queensland, remember that you not only need to have a minimum of $5 million Public Liability Insurance, but also need to have $500,000 cover in Consumer Protection Insurance.
Speak to your insurance broker for information about this requirement.
How much will it cost?
Cost of Public Liability Insurance will depend on a number of thing e.g the size of your business, state or area you work in, and type of electrical work you do.
If you’re a domestic electrician with an average annual turnover, you may pay between $500 and $700 dollars for Public Liability Insurance. Again, that would depend on a number of factors. If you run a larger commercial company, you can expect to pay more.
To help get the cost of Public Liability insurance down, it’s best to speak with an insurance broker as they have the knowledge and experience to get the best quote for your business needs.