The wrong cover can cut the power to your business

Running an electrical business is demanding. Whether you are carrying out domestic rewires, fault finding, testing and inspection, installing EV charging points, or working on larger commercial projects, no two days are the same. When you are busy, insurance can become something you arrange and then put to the back of your mind. However, it is important to understand exactly what you are insured for.

A useful way to think about insurance is like an electrical installation. A consumer unit may look neat and complete from the outside, but if the wrong type of circuit protection has been installed, a fault may not be properly managed, allowing a small issue to develop into a much larger problem. Insurance works in a similar way. A policy may look suitable at first glance, but if the cover limits, exclusions or conditions do not match the work you do, the protection can fail when you need it most.

A common misconception is that all insurance policies are broadly the same. Two policies may look similar and even cost a similar amount, but the cover can be very different. What matters most is the detail of the protection you have in place when something goes wrong. What is included under one policy may be excluded under another, and there may also be conditions that need to be followed for cover to apply.

That is why it is so important to make sure your insurance provider knows exactly what your business does. This means being clear about the type of electrical work you carry out, the size of the jobs you take on, and whether you work in domestic, commercial or industrial settings. If your business changes during the year, your insurer needs to know that too.

For example, you may begin tendering for, winning and undertaking commercial contracts that require higher levels of cover. Local authorities, housing associations and other commercial clients may ask for increased professional indemnity insurance as part of the contract requirements. If you are not set up with the right limits and cover from the outset, it could affect your ability to tender or even prevent you from taking on the work.

It is also important to disclose any higher-risk or specialist activities you may carry out. That could include work in hazardous areas such as rail or airside environments, oil and gas sites, mines, or substations, power stations and petrol stations. These types of work can carry additional risks and may need to be specifically declared to make sure you have the right cover in place.

The same applies to your legal responsibilities as an employer. If you employ staff, apprentices or labour-only subcontractors, you may have an obligation to hold employers liability insurance. Making sure this cover is in place is not just good practice –  it is essential for meeting your legal duties and protecting your business if an employee is injured or becomes ill because of their work.

We appreciate that electricians are busy. Insurance documents are not always easy to read, and it can be difficult to know what needs to be declared. That is where we can help. NICEIC Insurance Services understands the typical requirements of NICEIC certification. Our role is to help make sure the protection you have in place matches the work you do. We can talk you through the cover we can arrange, explain anything that is unclear, and highlight any conditions that apply to your policy.

If you are insured through another provider, we also offer a free business insurance review to help compare your existing cover with what we can arrange, and to see whether we can improve the quality of cover, price or service you are currently receiving.

If you would like to review your cover, please call 03339 206 470 or visit website to request a callback.