Got clients that are electricians? Here’s what you may need to know
The rapid growth of the number of electricians entering the Australian market presents an opportunity for BizCover Partners.
The electrical services industry has grown over the years and is expected to continue to grow strongly, reaching more than 157,000 workers by 2026.
Knowing how to approach the conversation of business insurance with your electrician clients could help you add value and create an additional passive income stream.
This article will explain some of the key insurance products mandated and recommended for electricians so you can equip yourself with the knowledge you need to advocate for their small businesses.
What insurance do electricians need?
Public Liability insurance* is a mandatory electrician licensing requirement in some states and territories of Australia.
It is there to provide protection if someone claims against the insured client, the business or its employees. Claims from a third party can be for personal injury or damage to their property caused by your business activities.
Product Liability insurance* is another type of cover that is mandatory in some jurisdictions.
It protects businesses against claims by third parties relating to property damage or personal injury caused by your products. Product Liability insurance usually forms part of a Public Liability policy and the word ‘product’ will be a defined term in the policy wording.
However, there are many small business insurance products that are designed for electricians.
While not mandatory, Professional Indemnity insurance* is an important form of protection for businesses that provide specialist services or professional advice. Some electricians may fall into this category when they advise clients about their electrical needs.
Professional Indemnity cover is designed to respond to claims against your client’s business for losses as a result of actual or alleged negligent acts or omissions in the provision of their professional service or advice. It will also assist with the legal costs associated with responding to or managing claims which are covered by the policy.
Where is it mandatory?
Tasmanianlicensed electricians are required to hold Public and Product Liability insurance of at least $5 million. Your clients will need to provide a Certificate of Currency when they apply.
Electrical contractors in Queensland must also hold at least $5 million worth of Public and Products Liability insurance approved by the regulator. Queensland contractors are also required to hold the Consumer Protection extension with a minimum level of $50,000* of cover to provide protection to consumers for defects in electrical work, non-completion of electrical work and liability resulting in an electrician testing their own work.
Victoria require licensed electricians to only hold a Public Liability policy of at least $5 million to operate.
Western Australiarequires electrical contractors to hold $5 million worth of Civil Liability insurance, which is another name for Public Liability cover.
In the Australian Capital Territory(ACT), electricians are not mandated to hold insurance for a license. However, proof of insurance must be provided to the contractor’s clients if requested.
There are no Public Liability insurance requirements in New South Wales. Rather, the insurance requirement for electricians in NSW is not for liability cover but home building compensation (HBC) cover, which is applicable to all trades rather than just electricians.
The Northern Territory and South Australianauthorities do not make any kind of business insurance mandatory for electricians.
Refer your SME clients
Many clients need mandatory insurance and some other insurance cover options to minimise their risk.
These requirements make it easy to refer your clients through the BizCover Referral Portal and create an additional revenue stream for your business.
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2022 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769