Why You Might Need Electricians Insurance

If you are working for yourself as an electrician then you should give thought to taking out electricians insurance. This generally comes under the category of tradesman insurance when looking for companies that provide this type of cover. Without a policy you could be left with many financial problems if a problem arose as you would have no source to claim from nor would any third party.

Or for instance, if you travel about - and electricians usually do as part of their everyday business life - then you will have a van and tools that you take with you. Tools generally cost a great deal of money and you could have thousands of pounds worth in your vehicle. In fact the biggest reason for claiming on insurance is down to the fact of stolen tools. Without insurance to fall back onto if your vehicle was to be stolen or broken into and your tools stolen then you would have to pay to replace them all. If you have electricians cover behind you to rely on you could claim on the policy.

There will be a certain amount of excess to pay out when making any kind of claim and this amount would be dependent on the provider. However if you should have £2,000 of tools stolen or damaged and you had to pay for instance £200 in excess then this would be better than having to pay out the whole amount. The excess could work in your favour as you could offer to pay more than the minimum amount that is asked by the provider. If you do then you could keep down the cost of your premiums for the insurance. However give some thought to the fact that should you have to claim you would have to find the amount of excess you chose in a lump sum if you were to have to make a claim.

Of course the insurance policy would not only protect your tools. It would also allow you to make a claim in the event that you should for example order parts and materials and you did not receive them. Again without insurance to back you up you would have to find the money needed out of your own pocket which again means you are working at a loss which is not good for business.

Your electricians insurance would also provide you with liability cover which is essential. If for example you should go into someone's home and do work for them and they were to get hurt through something you had done and sue you through court it would be very costly. Your insurance would payout costs for court and solicitor up to a pre-defined limit. This would have to be checked as the amount you could claim up to could differ with insurance companied and their policies.

Jason Hulott is editor of Small Business Cover, a new and exciting website offering pertinent small business insurance information to those who run a small business, whether they are a one man band, a husband and wife team (like us!), or a small to medium business enterprise with a number of staff.