Working in the electrical industry is intrinsically dangerous. The potential for something to go wrong is all too apparent – whether it’s an accident to the employee themselves or a problem with the work they are carrying out – so having the appropriate insurance cover in place is vital to protect any practising business

Recent research suggests many small businesses or sole traders are unaware of what their insurance covers and are taking on jobs well above the level that they are actually insured for. This not only puts the future of the business at risk, but could lead to criminal prosecutions and prison sentences if lives are put in danger.

Mike Langton is the affinity consultant for NICEIC’s parent company Ascertiva. He looks over the insurance arm provided by NICEIC and says over the past five years he has come across several cases involving claims in excess of £1m.

“Fortunately, on each occasion the company involved has had the necessary cover in place, but if they didn’t they would have almost certainly gone out of business,” said Langton.

“However, I often come across renewals for companies who have not had the correct policy in place for them and I dread to think what could have happened. Electricians are involved in a high risk industry and they need to ensure they spend the necessary time required to get the right level of cover in place.

“Too often they can fail to read the small print and think they are automatically covered for any eventuality when in fact they would be liable for everything.”

Langton estimates over 70% of businesses use an insurance broker to get the best terms and cover. But whether you go for a broker or arrange cover yourself, he suggests you do two things: seek out insurance that has been designed with electrical contractors in mind, and spend time talking to an expert so you get the right cover for your business.

NICEIC electrical contractors’ insurance, for instance, comes from as little as £68.90 a year for registered contractors. It includes public and product liability cover up to £2m, incidental PAT and PIR testing cover up to £75,000, incidental efficacy cover up to £100,000, tax investigation up to £50,000 and jury service protection, said Langton.

“Crucially, NICEIC knows how contractors’ typical work is changing, and so is able to continually adapt the policy to ensure it gives electricians the cover they need,” he adds.
Martin Butler has run his own company, Butler Electrical, in Leigh, Lancashire, since 2002. He joined NICEIC in 2009 and decided to take up the insurance offering because he trusted the name.

“One of the major benefits for me was NICEIC could offer me indemnity for periodic testing and PAT testing under the one policy,” he said. “The policy was quick and easy to explain. I also found the price to be very competitive which was a bonus, as when it comes to insurance you don’t necessarily want the rock bottom price as it usually doesn’t have all the cover every electrician should have in place.”