Do I need public liability insurance as an electrician?

Whether you are a self-employed electrician working on small domestic projects, or part of a limited company or partnership working on bigger developments, you will need to make sure you have the proper insurance.

In this video, part of our Public Liability FAQ series, we answer the question ‘Do I need public liability insurance as an electrician?’.

What is public liability insurance?

Public liability insurance is designed to protect you in the event something your business does causes damage to someone else’s property, or causes them injury or harm. It relates to clients or members of the public, rather than to your employees.

Public liability covers minor incidents, such as scorching the inside of a fuse cupboard, to serious incidents resulting in disability or death.

Is public liability insurance a legal requirement?

While not legally required, many clients, particularly in the public sector, may insist you have appropriate public liability cover of a certain level. If you don’t have it, you either won’t win the work or be in breach of contract.

You may also find your professional body or trade association insists you have public liability as part of their membership terms. This means not having cover could affect your business reputation, as failing to have it could result in you being denied membership.

Why is public liability insurance important?

Accidents can and do happen. Even the smallest incident can result in a claim against you for thousands or hundreds of thousands of pounds.

If you are facing a claim for damages, you will also need to take time off work to prepare the case and deal with any court proceedings, or pay someone to represent you. Your insurer can arrange this on your behalf.

What happens if I can’t pay a court order?

If a court finds your business responsible, you will typically be ordered to pay damages and the legal costs. If your business cannot pay, it will be at risk.

A judgement against you can affect cashflow and your credit rating. Ultimately, your business itself and your assets could be at risk if enforcement proceedings are brought against you.

How much cover do I need?

This will depend on the nature of your work and your clients. Usually, you would expect to have cover of between £1 million and £10 million.