Insurance can be a fickle market to navigate as a business owner and without the knowledge of how it works, it can be easy to fall into the trap of paying too much for your cover. As an electrician, you have to follow a number of regulations and laws to conduct your job, so it’s only right that you are provided with the right coverage needed. Whether you’ve got a policy that doesn’t quite match your business or you are lost on what you should be paying, we’ve got you covered – read on to find out more.
1 – Unsure What Policies You Need
As an electrician, having the right insurance coverage can be the difference between getting a job and missing out on one. Clients can be much more careful when choosing an electrician than any other trade due to the dangerous nature of the task at hand, so it’s only natural that some may ask for your insurance details. But what policies do you really need, and is there such a thing as being too insured? Some policies can cover similar things, however, the key policies you may need and will benefit from as an electrician include:
- Employer’s Liability Insurance – Any business that has employees is required to have Employer’s Liability Insurance by law. If you are paying somebody to work for or with you, then this policy is a must regardless of their relationship, duration of employment or even if you’re paying them in cash.
- Public Liability Insurance for Electricians – Public Liability Insurance isn’t a legal requirement for most trades but it is highly recommended. It offers you protection against any claims made by the public for injury or accidental damages to members of the public or property.
- Professional Indemnity Insurance – This policy will provide you with cover in the case that you make a mistake or miscommunicate with the client, and they are unhappy with the result of your work. If they are, you could be liable for covering the cost of putting it right, as well as returning the cost of the job to the client. This policy protects you in these cases.
- Tools Cover – Electricians carry tools and when those tools break or go missing, they can be costly to replace. It’s not required, but it’s highly recommended to provide you with cover in the event of damage, theft or loss.
- Van Insurance – Any vehicle on the road needs insurance, so it’s best to get the right insurance for your vehicle. In this case, it’s likely to be van insurance, or any vehicle with business use declared.
2 – The Size Of Your Business
The size of your business can affect the cost of your premiums – after all, the more there is to cover, the more coverage you’ll need. While it’s possible to be underinsured by not declaring the true size of your business, it’s also possible that you’re paying for too much coverage which can also prove to be a problem in the long run. You’ll be paying more out of pocket for the cover and you could even be incorrectly insured if you do need to make a claim. When getting a quote for your policies, it’s best to fill in the details as accurately as possible to avoid any discrepancies.
3 – Your Experience Level
As with any insurance cover, the more experience you have and the longer you can prove you’ve not needed to make claims and have paid your premiums correctly, the less an insurer may feel they need to charge. If you are a new business with little experience, it’s possible they will charge you more as you are deemed a higher risk than a business that has been going for longer and has more experience. We can help you find the right insurer and the best price regardless of your experience level – simply get in touch to find out more.
4 – You’ve Become Complacent
Have you been letting your insurance tick over year after year, paying whatever renewal price the insurer throws at you? It’s possible that you are paying way too much for your policy now. Whether it’s incorrect details on the policy which could make it invalid or just the age-old problem of higher renewals, these can all add up to paying too much. We can check your renewal costs against new quotes and help you find a better rate and cover for your business.
5 – The Wrong Insurer
Similar to the previous point, having the wrong insurer could also lead to paying too much for your premiums. Like any industry, some insurers tend to charge more than others and not every insurer will be the perfect fit for your business. Doing your research or using a broker like ourselves, you can find better rates for your business and business activity to ensure that you are not only properly covered but also paying the right prices.
6 – Your Industry
Unfortunately, the industry that you work in can have a huge effect on the cost of your insurance and there isn’t much that can be done about it. The more dangerous an insurance company believes your industry to be, the higher your premium. Electricians face many risks daily so there will always be a cost associated with the business compared to other, more passive jobs, however, this will mean that you are adequately covered and protected against claims, accidents and more.
For more information about our Electrician’s insurance policies or to find the right policy to suit you and your business at the right price, we are on hand to help. Simply get in touch to find out more.