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For most business owners public liability insurance is an option, but for certain business types, such as electrical contractors, it is often mandatory.
Electricians in certain states of Australia are required to hold public liability insurance in order to obtain their electrical contractors licence.
Other electricians may not be required to hold insurance for their licence, but they may still have mandatory insurance requirements set by the companies they subcontract to.
Here at publicliabilityinsurance.com.au we can assist electricians with their insurance needs, and in this guide we will provide you with some of the information you need to know.
If you would simply like a quote on your insurance please complete our public liability online quote form.
Electrical Contractors Licence Requirements
Most Australian states require that electricians undertaking domestic and commercial work must hold an electrical contractors licence.
Furthermore, some also require that public liability insurance is held prior to issuing or renewing an electrical contractors licence.
The requirement set by most states is for a minimum of $5 million public liability insurance, however some electricians may require more depending on the types of work they are undertaking and the locations which they work in.
Some electricians working on industrial projects as employees rather than subcontractors may not be required to hold insurance, but if you are planning on doing any small weekend jobs on the side, such as installing power points and lights, you will still need insurance in most states.
What Does Public Liability Cover?
The form of insurance commonly known as public liability or broadform liability (which is essentially the same thing) is designed to protect electricians and other business owners from the financial impacts of certain events.
More specifically, public liability is designed to cover the costs of a claim against your business where your negligent actions have resulted in property damage or personal injury to another person.
When an electrician is found to be responsible for property damage or personal injury to another person, they will generally be liable for that person’s costs.
These costs can include repair and replacement in the event of property damage, or medical expenses, lost income, rehabilitation and other forms of compensation in the event of personal injury or death.
The costs of such a claim can be anywhere from a few hundred dollars through to a few million, so it is certainly worthwhile for an electrician to hold adequate cover for their business.
Consumer Protection Insurance Qld
Queensland is somewhat unique when it comes to public liability insurance for electricians.
Electricians in Queensland must not only hold a minimum of $5 million public liability cover, but also an additional $50,000 cover known as consumer protection insurance.
Only certain insurance companies are able to offer public liability policies with the consumer protection inclusion, and here at publicliabilityinsurance.com.au we have access to them and have assisted plenty of Qld electricians with their insurance needs.
Electricians Insurance Cost
The cost of public liability for an electrician will depend on a number of factors including the type of electrical work you do, the types of locations you work in and the size of your business.
A domestic electrician operating as a sole trader with an average turnover could expect to pay somewhere between $500 and $700 for their insurance depending on which state they were based in.
For larger electrical contracting businesses with multiple staff and high turnover, or those working in higher risk locations such as airports or mine sites, the public liability insurance cost can be a lot higher.
The most accurate way to find out how much public liability insurance will cost you is to obtain a quote. You can do so via our website, or you can call us on 1300 542 245 to speak with an insurance expert.