Miniseries: Do I Need Public Liability Insurance?
In this, the next part of our miniseries, we are looking at Public Liability Insurance.
Although Electricians are not required by law to have Public Liability insurance, a lot of associations stipulate it as a requirement of joining.
Also, it is generally good for the reassurance of your clients. It will cover you if someone is injured or if their building becomes damaged due to work carried out by you.
Usually a public liability policy will cover you for costs such as; legal fees, damages liability and expenses for defending a liable claim.
This means that if electrical wiring causes a fire, the contractor who installed it could be held liable for negligence during installation. If it is found that the damage was due to the contractor’s work, the public liability insurance would pay out to cover the cost of the damage, to the policy limit.
Obviously this is an extreme case but it does highlight the importance of Public Liability insurance. How much a policy will cost you depends on your business circumstances, the size, type and nature of your business.
So, even though it is not required by law, we highly recommend every electrical contractor getting themselves set up with Public Liability, to ensure that they are fully able to cover the cost of any possible claims or eventualities.
Written by Sara Thomson