In Queensland, Section 43 of the Electrical Safety Regulation 2002 sets out the insurance requirements for an electrical contractor licence. It requires that all electrical contractors hold current public liability insurance of at least $5,000,000 under a contract of insurance.
The Liability cover also needs to include goods in your care, custody or control including risks arising from liability due to testing and certification of work. Also resultant injury, loss or damage arising from a faulty design designed or installed, as well as incorrect advice given by the policy holder. Also Consumer Protection liability for $50,000 must be included.
While it directly affects your ability to become licensed in Queensland, the real purpose of an Electrician’s public liability insurance is to protect you or the sub-contractor against financial claims in the event of damage to a property or injury to people (other than employees) that have been caused by you or a member of your staff.
It could easily happen. There you are on a jobsite and someone is accidentally electrocuted or they trip over your gear and sustain an injury. If you are found to be to blame for this, you are likely to be found liable to pay compensation to the injured party or their family.
Despite it being compulsory for Electricians, Public liability insurance is there to help when things turn nasty. All Electricians and their sub-contractors on a jobsite should carry public liability insurance to protect themselves against personal financial ruin.
$5,000,000 really is not enough cover despite this being the legal requirements. You will need enough public liability insurance cover for the full extent of the claims made against you. Liability claims and lawsuits aren’t just large company problems – they financially devastate tradesmen as well. We suggest considering at least $20,000,000 cover.
These days injuries such as Quadriplegia to a young person need substantial 24/7 care for many years. This has happened. You can imagine the cost of this! It could be you who may be liable!
Sub-contractors are deemed to be self-employed. Always check that sub-contractors have their own current and adequate public liability insurance before allowing them to enter a job site.
When engaging labour hire workers, proper provision has to be made in the policy for them. Otherwise you may be responsible also for things they do.
The good news is that Electrician’s public liability insurance premiums are affordable and may even be paid monthly for a small extra cost.
If you want to know more about these policies and conditions relevant to your profession, contact a specialist insurance broker such as CPR Insurance Services. We can be contacted on 07 3123 1137 or 0439 530910. Email is firstname.lastname@example.org.
An insurance broker’s role is to act as your representative and work in your interests. We seek the best public and product liability insurance at the lowest rates for you from market knowledge and research. Call a good one giving around-the-clock service and support.
CPR Insurance – Experts who will save you
Cooper Professional Risks Pty Ltd trading as CPR Insurance Services is an Authorised Representative of National Adviser Services Pty Ltd (ABN: 60 096 916 184) trading as NAS Insurance Brokers (AFS No.233750)