Why Do Electricians Need Insurance?

Having insurance is more than just policy compliance. It?s a smart investment that can protect you in the future. As electricians, you must know the dangers you face every day. Whether you work in electrical construction or maintenance, it is advisable to protect yourself at all times. One way to do this is to get comprehensive insurance coverage.�In today?s article, we will discuss the importance of having insurance for electricians. We will also talk about different insurance types you should have as a self-employed or a business operator.�

Alarming Statistics About Electrical Injuries & Emergencies in Australia�

Sources:�Australian Institute of Health and Welfare�Electrical Fatal Incident Data (2016)NSW Emergency Care Institute (ECI)

• Over 73% of deaths involving electrical incidents happen at home. This includes electricians who performed home repair services.�
• 61% of electrical injuries sustained by professional electricians happened during work.�
• Out of 1,065 hospitalisations due to electrical emergencies, 55 patients have died.
• Over 61% of electrical injuries occurred due to materials and equipment malfunctions.�
• Reports show that 4% of electrical workers in Australia are not yet insured.�
• There are over 1,100 serious compensation claims because of electrical-related accidents.�
• An estimated 20 Australians die due to electrocution each year.�

Common Electrical Injuries in Australia��

Faulty electrical wires at home or in the workplace are the most common reasons for electrical accidents or injuries. This usually happens to young males, but there are also reports of young children sustaining electrical injuries due to contact with power cords. Injuries can range from minor to fatal, depending on the voltage involved. Here are the most common electrical injuries:

• Electrical Shock
• Electrocution�
• Falls
• Burns�

What Types of Insurance Do Electricians Need?�

Knowing the right type of insurance coverage you need is vital to ensure your security. While the Australian government mandates some of these policies, you may also consider more comprehensive policies to maximise your benefits and protection.�Check out these insurance policies for electricians:

• Public Liability Insurance�

Most states in Australia require electricians to have public liability insurance. In some cases, this insurance is a prerequisite to having an electrical contractor?s licence. The usual minimum coverage for public liability insurance is $5 million, but some may require more, depending on the scope of work.�

What Does it Cover?�

This covers you or your business from third-party claims for injuries, death or property damages. Public liability insurance protects you when you?re liable for negligence. For example, if a person gets injured becuse he or she trips while repairing electrical lines. In addition to property damages and injuries, illnesses or death, a public liability insurance may also cover the following:

• Negligent advice�
• Emotinal damages�
• Recognised psychiatric illnesses�
• Consequential loss (negligence causing another business to lose revenue)

How Much is Public Liability Insurance for Electricians?�

The cost of public liability insurance depends on your selected premium and insurance provider. On average, it can range from $65 to $85 per monthly premium. Here?s a quick breakdown:Coverage�Average Monthly Premium�$5 million�$65 to $70$10 million$70 to $75$20 million$80 to $85Looking for comprehensive public liability insurance? Get a FREE quote now!�

• Workers Compensation Insurance

Workers compensation is also mandatory in most states in Australia. As the name implies, this insurance cover is designed to protect electricians from unforeseen events. If you are a business operation, it is important to have comprehensive workers compensation policy to provide a financial safety net for your business and employees.�

What Does it Cover?

The workers compensation insurance policy covers hospital expenses and wages in case an employee gets injured or sick because of work. It provides financial help to allow workers to focus on recovery until they are fit to work again.�Here?s what is usually included in workers compensation insurance:�

• Some of the employee?s wages until he or she is ready to work again
• Medical and hospital expenses�
• Rehabilitation costs�
• Lump sum compensation for permanent impairment
• Funeral expenses�
• Periodic payments to support your immediate family members or dependents in case of death�

How Much is Workers Compensation Insurance for Electricians?

There are no fixed rates for workers compensation insurance. The computation usually depends on the employee?s annual income and selected premiums. Location is also a pricing factor for this insurance cover.�Check out the table below for reference.�State:Premium RateNew South Wales1.47%Victoria1.272%Queensland1.23%Western Australia1.822%Southern Australia1.8%Tasmania2.08%Australian Capital Territory2.33%Note: Multiply the amount of remuneration you spend on the following estimated premium rate to get an idea of your worker?s compensation cost.�Source: Insurance Finder Australia�For more accurate figures, you can get a FREE quote from Tradies365.�

• Contract Works Insurance�

Another electrician insurance to consider is the contract works insurance policy. This covers you or your business for any loss or damage at any stage of the project, including the pre-planning, work in-progress stage and post-completion phase.�

What Does it Cover?

Apart from property loss or damage, some insurance providers may also offer more comprehensive coverage. Reputable insurance brokers usually offer annual or project-based policies, depending on specific requirements.�Here?s what is usually covered by contract works insurance:

• Theft
• Malicious damage
• Wind, storm, flood, water damage, fire, earthquake and other calamities
• Machinery, equipment and other tools
• Builder, owner, contractors and subcontractors�
• Construction, ancillary and temporary works, including hired items�

Additional coverage that can be included in your policy:

• Owner supplied materials
• Professional or service fees
• Escalation costs
• Off-site storage and fabrication
• Mitigation expenses
• Materials in transit

How Much is Contract Works Insurance for Electricians?�

The price range for contract works insurance may also vary, depending on the scope of work. On average, contract works insurance premiums can range from $500 for a small project.�

The Bottom Line

Whether you?re self-employed or operating as a business, having an insurance is imperative to safeguard your future. You can never predict accidents. The best thing you can do is to prepare for it.� Getting comprehensive electrician insurance will give you peace of mind that you deserve. Just make sure to choose a reliable insurance broker to ensure your safety.�Tradies365 Insurance is a leading insurance provider in Australia. We specialise in creating a customised insurance package tailored to fit your specific needs and budget. Protect your future by investing in the right insurance cover. Call us today at 1300 226 268 to get a free quote!�Note: The material offered here is for informational purposes only. It does not constitute legally binding advice and should not be a substitute for a consultation with an insurance expert.