FAQs

Frequently Asked Questions

Need answers? Take a look through our FAQs below.

While public liability insurance isn't a legal requirement, it is strongly recommended for contractors and tradespeople since the nature of the job brings you into contact with clients and members of the public. That's because, no matter how careful you are, accidents do happen – and if an accident causes injury or property damage to a client or member of the public, you could find yourself faced with potentially expensive legal and compensation costs. Without public liability insurance, these costs would need to be funded from your own pocket. Public safety and the positive reputation of contractors and tradespeople are an important part of NICEIC registration. If you are a registered contractor, you need a minimum of £2 million cover to meet registration obligations. This amount is included in our electrical contractors insurance cover with Covéa as standard. However, we recommend you check any contracts you undertake and seek specialist insurance advice if more cover is needed. There's no requirement to have public liability insurance in place from a legal perspective, but it's certainly an essential insurance to consider as a responsible contractor. Also, you could be left out of pocket if a claim is made against you and you don't have adequate cover. If you provide advice or consultancy to clients as part of your work as a contractor, you should consider taking out professional indemnity insurance. This will cover the cost of legal fees and compensation if a client alleges a failure in your professional advice. The good news is that professional indemnity cover is included as standard in most of our contractors insurance solutions, designed to provide comprehensive, flexible cover at an affordable price. There are some exceptions, but if your business has at least one employee, then the likelihood is you will need employers liability insurance – remember too that temporary workers, "labour-only" subcontractors, volunteers and people doing work experience all count as employees for the purposes of insurance. The Employers' Liability (Compulsory Insurance) Regulations 1998 made employers liability insurance cover of at least £5 million compulsory for any individual or company with employees. The exceptions include: - Limited companies where the owner is the only employee and owns 50% or more of the issued shares. - Businesses that are not limited companies and only employ close family members. Yes. Simply follow the 'Get A Quote' link, fill out some information about you and your business, and we can generate an online quote tailored to your needs in a matter of minutes. Whether arranging insurance online or over the phone, you can be covered straight away, subject to a 10% deposit. The remaining payment can be set up within seven days. Just be sure to let us know you want the cover to start immediately, or specify a date that suits you if you don't want cover straight away. Direct insurers may only have a limited choice of policies or limited cover options. In contrast, a broker usually has access to a panel of insurers so has more choice and can find cover to suit your needs. Using a broker to arrange your insurance may also help reduce your workload and the time it takes you to search for your insurance. We aim to help you get value for money, so we use the strength of our market position to negotiate cover and price with insurers in advance. We do this to help deliver the right product at the right price for our customers. To present you with the options available to you, we compare insurance from a panel of UK insurers so we can recommend a product that suits your needs. They are very different policies. In essence, employers liability protects against death or injury to employees whilst at work. In contrast, public liability protects against death or injury and damage to property, affecting everyone apart from employees, and which comes about as a result of your work. The cost of public liability insurance depends on the nature of your business – its size, claims history, and the types of work you undertake. For that reason, there is no single average cost of public liability insurance, but rest assured that we are here to find you the right cover at the right price and offer competitive cover with limits ranging from £2 to £10 million for selected trades. How much insurance cover you need to protect your business and your livelihood depends on the nature of your business, but also your attitude to risk. First of all, if you employ people, employers liability insurance with a limit of at least £5 million is a legal requirement. Equally, while public liability insurance is at the very least a sensible precaution for contracting businesses, remember that holding public liability insurance of at least £2 million is also a condition of NICEIC accreditation – and may also be required by customers before they will award contracts. Professional indemnity insurance is not required by law or by NICEIC but could prove invaluable if your work includes offering clients advice and consultancy. All these liability covers are essentially designed to help with legal fees and compensation if a client, employee or member of the public takes legal action against you related to your work. On top of that, if you use a business vehicle, insurance is compulsory, and you may also want to consider insurance for premises, tools, contract works and personal covers like income protection and personal accident. The good news is that the insurance you need is readily available from NICEIC Insurance– with flexible, competitively priced policies that can be tailored to your needs. How much you pay for public liability insurance cover depends on the nature of your contracting business – its size, claims history, the type of work you undertake and the level of risk that comes with it. That means there is no single average cost of public liability insurance. However, most contractors insurance from NICEIC Insurance includes public liability cover as standard, with limits of £2 million and £5 million, or £10 million for selected trades. The level of protection you take out depends on the type of risks you face. It's an individual decision based on the nature of each business – though it's worth finding out what level of cover potential clients expect you to have. There may be a minimum requirement of cover required depending on the nature of the job or your electrical contractor registration – for example, if it's a commercial contract for a council, they may require a higher level of cover than a domestic job. If you are an NICEIC registered contractor, you need a minimum of £2 million worth of public liability insurance is required in place to meet the obligations; therefore, we offer public liability cover ranging from £2 million up to £10 million, depending on the trade and insurer. Labour-only sub-contractors work under your direction, typically use tools and materials you provide, and are paid by you or through an employment agency. Legal expenses insurance covers legal costs incurred in defending or pursuing specific kinds of civil legal action. It can cover everything from employee contract disputes, Inland Revenue tax investigations, and bad debt recovery to prosecution defence and action against you related to the Data Protection Act 2018. That depends on whether you use 'labour-only' or what's known as 'Bona Fide' sub-contractors. Labour only subcontractors work under your direction and typically use tools and materials you provide ‒ and are paid by you or through an employment agency. Bona Fide subcontractors, on the other hand, are paid by the main contractor but work under their own direction and provide their materials and tools. You'll need employers liability insurance if you use labour-only sub-contractors – but Bona Fide sub-contractors are not treated as employees for insurance purposes. This will usually be decided by the main contractor, who will set out in contracts governing your work whether you need to take out public liability insurance and at what level. The main contractor will take out public liability insurance to cover the entire project in some cases. Still, it can be a mistake to assume that this cover will defend against all the public liability risks you face as a subcontractor. The good news is that most contractors business insurance policies available from NICEIC Insurance include public liability cover as standard to give you the extra peace of mind that comes from knowing you are adequately protected. IPT is a tax levied by the government, which is payable on all general insurance premiums. Employers liability insurance protects you in the event you are held legally liable for accidental death or injury to your employees - at work or in connection with your business. It also covers legal costs incurred by employees in making successful legal claims against you. Yes, employers liability insurance requirement extends to businesses using temporary or casual workers that are employed on a short-term contract and ad-hoc basis – whether they are clerical or manual workers. Efficacy cover is liability insurance, which protects you in the event of an injury to a third party or damage to their property resulting from the failure of a product or service to perform its intended function – for instance, an alarm system, fire control or extinguishing system, or electronic security system. The cover applies to either failure of a product or a fault in its installation. With our specialist electrical contractors insurance cover with Covéa we automatically include efficacy cover of £100,000 as standard. Business insurance is designed to protect businesses when they suffer losses while carrying out their usual activities, and is particularly important if a business finds itself facing a claim for compensation. Typical business insurance cover may include employers' liability insurance, public liability insurance, and professional indemnity insurance. An employee is someone who works part-time or full-time under an employment contract. However, remember that when it comes to employers liability insurance, you may need cover for people you don't consider to be employees – like volunteers, 'labour-only' subcontractors, temporary staff and students on work experience. A statement of fact is a document used by insurers to formally set out all the information you provide to them when seeking to buy insurance – in essence, it sets out the basis on which insurance is provided, so it's important to check that statements of fact are accurate before buying insurance. A certificate of insurance is a document that insurers give to their customers to prove that insurance is in place. This includes losses – including theft or damage – due to customers keys being lost or stolen whilst in the care of the contractor, up to £50k. Public liability insurance applies to claims made against you by clients or members of the public, alleging that your work has caused them injury or damaged their property. It covers the cost of legal defence, compensation, damages, and any legal expenses incurred by third parties in making a successful legal claim against you. Professional indemnity cover up to £100,000 collateral warranties is included as standard. This includes protection when operating as a sub-contractor with contractual obligations to your client regarding work undertaken. No. Bona Fide sub-contractors are paid by the main contractor, but work under their own direction, provide their materials and tools, and usually have their own public liability insurance in place. Details on how to make a claim can be found in your policy documentation. However, please feel free to contact us on 0330 134 4602 if you have any queries or would like some assistance. You can extend your electrical contractor business insurance to include a range of optional extras such as employers liability and tools cover to deliver personalised insurance protection to suit your circumstances. We can also arrange other essential insurance covers, from personal accident and income protection to property and vehicle insurance. Public liability insurance is designed to protect your business if a client or member of the public claims they have been injured or their property damaged because of your business activities. It covers the cost of legal defence, compensation, damages, and any legal expenses incurred by third parties in making a successful legal claim against you. For example, if wiring you installed later caused a fire that damaged a building, and it was then deemed that you were negligent, your contractors public liability insurance would pay the costs and compensation – up to the maximum level of cover (or limit of indemnity) indicated on your policy. Comparison and buy online websites often require you to sort everything out for yourself and typically work by asking you minimal questions to offer you a quick quotation. But if you don't understand the intricacies of the insurance you're looking for, you could end up with inadequate cover, which could leave you exposed when you need to make a claim. This is where a specialist insurance broker should be able to help. Typically, you will be asked relevant questions to assess your needs and provided with advice and guidance throughout the process. Your broker will then search for the most appropriate insurance to satisfy your needs and present you with relevant options and prices to make an informed choice. Professional indemnity insurance protects you and your business in the event of legal claims relating to advice you have provided as part of your work. It steps in to cover the cost of legal defence and compensation if a court finds against you. No, they are very different policies. In essence, employers liability protects against death or injury to employees whilst at work. In contrast, public liability protects against death or injury and damage to property affecting everyone apart from employees, and which comes about as a result of your work. Own plant or hired in plant cover is vital for tradespeople who often use complex plant machinery and equipment. It either covers loss or damage to plant you own or any legal liabilities resulting from loss or damage to plant you have hired in – for instance, compensation due under any hire agreement. No. While both are designed to cover the cost of legal fees and compensation awarded against you, public liability insurance applies to claims arising from injury or property damage suffered by clients or the public. On the other hand, professional indemnity insurance applies when clients allege failings in your professional advice. You can get a quote online and secure your cover in minutes or, if you would rather talk to someone for help and guidance, you can also get a quote by telephone. On average, this will take around 10 minutes over the phone, depending on the complexity of your requirements. No. While public liability is a form of business insurance, the term 'business insurance' refers to an array of insurance covers designed to protect businesses against a wide variety of risks. Public liability defends against legal claims against you made by clients or members of the public – alleging injury or property damage resulting from your work. But business insurance could include employers liability, professional indemnity, business property cover, fleet insurance, and more.