Electricians Public Liability Insurance

Public liability insurance is designed to protect your business if a client or member of the public claims they have been injured or their property damaged because of your business activities. It covers the cost of legal defence, compensation, damages, and any legal expenses incurred by third parties in making a successful legal claim against you. For example, if wiring you installed later caused a fire that damaged a building, and it was then deemed that you were negligent, your contractors public liability insurance would pay the costs and compensation – up to the maximum level of cover (or limit of indemnity) indicated on your policy.

Public safety and the positive reputation of contractors and tradespeople are an important part of NICEIC and ELECSA registration. If you are a registered contractor, you need a minimum of £2 million cover to meet registration obligations. This amount is included in our electrical contractors insurance cover with Covéa as standard. However, we recommend you check any contracts you undertake and seek specialist insurance advice if more cover is needed. There's no requirement to have public liability insurance in place from a legal perspective, but it's certainly an essential insurance to consider as a responsible contractor. Also, you could be left out of pocket if a claim is made against you and you don't have adequate cover.

They are very different policies. In essence, employers liability protects against death or injury to employees whilst at work. In contrast, public liability protects against death or injury and damage to property, affecting everyone apart from employees, and which comes about as a result of your work.

How much you pay for public liability insurance cover depends on the nature of your contracting business – its size, claims history, the type of work you undertake and the level of risk that comes with it. That means there is no single average cost of public liability insurance. However, most contractors insurance from NICEIC and ELECSA Insurance Services includes public liability cover as standard, with limits of £2 million and £5 million, or £10 million for selected trades.

This will usually be decided by the main contractor, who will set out in contracts governing your work whether you need to take out public liability insurance and at what level. The main contractor will take out public liability insurance to cover the entire project in some cases. Still, it can be a mistake to assume that this cover will defend against all the public liability risks you face as a subcontractor. The good news is that most contractors business insurance policies available from NICEIC and ELECSA Insurance Services include public liability cover as standard to give you the extra peace of mind that comes from knowing you are adequately protected.

The level of protection you take out depends on the type of risks you face. It's an individual decision based on the nature of each business – though it's worth finding out what level of cover potential clients expect you to have. There may be a minimum requirement of cover required depending on the nature of the job or your electrical contractor registration – for example, if it's a commercial contract for a council, they may require a higher level of cover than a domestic job. If you are an NICEIC and ELECSA registered contractor, you need a minimum of £2 million worth of public liability insurance is required in place to meet the obligations; therefore, we offer public liability cover ranging from £2 million up to £10 million, depending on the trade and insurer.

If you are an NICEIC and ELECSA registered contractor, you need a minimum of £2 million public liability insurance cover to meet the obligations of your registration as public safety and confidence is an important part of the NICEIC and ELECSA badge. £2 million of public liability cover is included in our electrical contractors insurance cover with Covéa as standard. However, higher limits are available for certain trades. From a legal perspective, whether you take out public liability insurance as a self-employed contractor is down to personal choice and your attitude to risk. However, given that this cover is there to protect your finances against legal fees and compensation if a client or member of the public alleges they have suffered injury or property damage as a result of your work, it is a cover that is worth looking closely at.