As an electrician, you know that working with electricity is dangerous. The risk of injury due to electrical shock, welding or burns is something all electricians are familiar with, while damage to tools or property, or theft of equipment and tools is not only a financial burden that could stop you from doing your job, it can be life threatening too.
Managing the risks and hazards that come with being an electrician is a vital part of your job. Which is why protecting your electrician business with adequate business insurance cover is so essential, ensuring you and your business are financially protected should something go wrong.
When it comes to insurance for electricians, there is some insurance cover that is essential, including:
The type of insurance NZ that electricians require will depend on a range of factors. Some of the things to consider when choosing tradie insurance or business insurance for electricians are:
Other considerations involve the tools and equipment you use as an electrician. How much these are worth will determine how much Business Assets Insurance cover you’ll need to take out.
Even the most cautious of electricians could encounter a hazard at some point during the course of their work. To ensure electricians are not left carrying the financial risk of a claim, it’s vital they are covered with adequate Public Liability Insurance. Public Liability Insurance protects electricians and their business against the financial implications when liable for loss or damage to a third party’s property, or illness or injury not covered by the Accident Compensation Commission (ACC).
An electrician mistakenly connected a 120-volt heater to a 240-volt circuit box in a home, causing the heater to overheat and catch fire. The fire spread rapidly through the client’s living room, damaging furniture and electronics worth thousands of dollars. The electrician was deemed negligent and held liable for the cost of repairs to the home and replacement of damaged items. Under the electrician’s Public Liability Insurance, the claim for negligent damage was accepted and paid out.
All organisations, regardless of industry, are required to adhere to New Zealand Acts of Parliament. In New Zealand’s highly regulated environment, it’s not unusual for businesses to unintentionally breach laws, often resulting in financial liability such as fines, penalties or reparations the business is ordered to pay. With Statutory Liability Insurance, businesses, such as electricians and others, are covered against financial liability arising out of an unintentional breach of law. This type of insurance also covers legal defence costs and representation costs, which could easily amount to several thousands of dollars.
Under the Health and Safety at Work Act, an electrician was deemed in breach of the act for failing to provide information, training, instruction or supervision to protect an electrical tradie who was injured in an electrical incident while at work. The electrician lodged a claim under their Statutory Liability Insurance policy to cover the cost of legal fees and penalties incurred due to the breach. As a result, the electrician did not have to cover these costs personally so was not out of pocket.
If employees or tradies are injured during the course of their work and the injury or illness is not covered by ACC, the electrician may be deemed responsible for any costs that arise from the incident. If this happens, it’s helpful to know that Employer’s Liability Insurance covers electricians for the financial risk from compensation claims made by an employee who has been injured or gets ill in the workplace while doing their job.
An electrician was ordered to pay out damages to an employee who suffered stress and anxiety as a result of witnessing an electrical accident that led to a death in the workplace. The electrician’s Employers Liability Insurance policy covered the cost of the employee’s claim for personal injury, as well as legal costs for their own defence.
Electricians rely on professional equipment, tools and machinery to perform their job, and without the tools of their trade would find it difficult to complete their work. So when equipment, tools and machinery get lost, damaged or stolen it can put the brakes on an electrician’s work. Replacing these would be a significant cost to the business that many electricians would struggle with. But with Business Assets Insurance, electricians can replace or repair lost, damaged or stolen equipment, tools and machinery used in the electrician’s workplace, and get back to work faster.
When an electrician’s workshop was destroyed in a fire, all of the equipment, tools and machinery used in the workplace were damaged beyond repair. The electrician’s vehicle parked on-site was also badly fire damaged. A claim was lodged against the electrician’s Business Assets Insurance which covered damage to the workshop, all of the equipment and tools, as well as the commercial vehicle used for work.
For commercial vehicles, including cars, vans and trucks, used for business purposes, it’s essential that electricians have the right Commercial Vehicle Insurance cover. This type of insurance protects against the financial loss incurred when commercial vehicles that are used for business purposes are involved in an accident, are stolen, or are damaged in a fire.
An electrician’s van parked outside overnight was stolen along with expensive tools and machinery kept inside. The vehicle was recovered a few days later, however, all of the equipment was lost and the van incurred severe damage to the ignition and side window requiring it to be off the road for a week while being repaired. Under the Commercial Vehicle Insurance policy, the electrician was able to claim for the full cost of repairs as well as replacement of all tools and machinery that were inside the van.
Many New Zealand businesses face disruption to work because of natural disasters. Not being able to work and earn an income can be devastating to an electrician’s business, especially as the business still needs to meet its financial obligations and pay bills such as employee wages, rent and loans. Having Business Interruption Insurance can make all the difference when a natural disaster strikes, as it covers business expenses and the potential loss of income while the business is unable to operate due to circumstances such as earthquakes, flooding or fire.
Earthquake damage left an electrician’s workplace inaccessible for several weeks, and not being able to retrieve machinery, tools and equipment meant the electrician was unable to perform their job. Not only did they suffer financial loss of income, but the workplace needed extensive repairs before the business was able to return to site. Business Interruption Insurance helped prevent this electrician’s business from bankruptcy, covering all business expenses and loss of income for the time it took for the repairs to be completed. It meant the electrician could return to work without the financial burden of having to pay for expenses while not earning an income.
Having the right insurance NZ cover can make all the difference to an electrician’s business. It means being covered against financial loss when things go wrong. Being able to pick up and continue working without the financial burden and stress of having to pay for costs beyond your means.
As experts in insurance NZ, Max Insurances’ advisers understand that having insurance cover is absolutely crucial to businesses such as electricians. But we also know it can be confusing trying to find the right Business Insurance cover for electricians. Which is why Max Insurances provides:
For all your business insurance needs, contact a Max Insurances adviser today to find the right insurance cover to fit your business. To speak to an adviser right now, call us on 0800 ASK MAX (0800 275 629)!
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