There are a few things to consider when it comes to protecting your electrical business for the long term, especially when it comes to business insurance* and ensuring you stay compliant with specific standards. To make things a little easier, we’ve compiled a list of the most important facts you should know regarding insurance requirements for electricians in Queensland, minus the boring stuff.
Let’s start with a basic understanding of what some of your insurance needs include.
Electrical contractors in Queensland must meet certain insurance criteria.
When working as an electrician in Queensland, you need to ensure that you have insurance coverage that complies with the ES Regulation’s Section 51 criteria. The insurance must be issued in the legal name of the company that is requesting the licence. Your coverage must also cover public and product liability, with a $5,000,000 indemnity limit and $50,000 in consumer protection insurance.
A consumer protection policy is not a separate policy. It’s normally included in your sole trader insurance by default. When you quote your policy and specify that you are a Queensland electrician, this will be taken into account when drafting your coverage.
The following are some of the other requirements for your policy:
- liability arising from the ES Regulation’s testing and certification of work injury or damage arising from faulty design work performed by you, even if you did not charge a specific fee for such design work.
- injury or damage arising from incorrect advice, even if you did not charge a specific fee for such advice
- goods in your care, custody, or control
What is Consumer Protection Insurance?
Consumer protection insurance is likely something you’ve never heard of, and you’re not alone in asking what it is. It’s a policy that only applies to household electrical work; it’s not necessary for commercial work.
It only applies to domestic work and has no bearing on your policy’s Public Liability provision. Your commercial job is normally covered by your Public Liability insurance policy, as long as it falls within the restrictions indicated on your bids and policies.
The following are some of the things that Consumer Protection insurance may cover:
- improper trade practises in domestic electrical work
- Personal injury or property damage deriving from wrong advice or faulty design work conducted by the Insured, even if the insured did not charge a particular fee for such advice or design work,
- residential electrical work that has not been completed
It’s always a good idea to double-check with your insurance provider about the specifics of your Public Liability insurance policy, especially when it comes to the Consumer Protection provision.
What is the best way for me to meet my insurance requirements?
As a Queensland electrician, it’s critical that you check all the correct boxes when it comes to obeying the rules.
One of the first things you should look for is a certificate of currency for your insurance policy that covers all of the following government requirements; i.e., that you have a current Public and Products Liability insurance coverage with a minimum limit of $5,000,000 and a minimum limit of $50,000 in Consumer Protection Liability under a contract of insurance issued in the applicant’s name.
You must affirm the following when filling out your licence application:
“By checking this box, I, the authorised person, certify that: At the time of making this application, the electrical contractor licence applicant (as named in section 1 of this application) has current product and public liability and broadform insurance of at least $10,000,000 under a contract of insurance, including consumer protection insurance of at least $40,000.
That the applicant’s insurance policy is in his or her legal name (that is the same name as the applicant stated in section 1).
I have documentary evidence of the aforesaid insurance coverage’s current status, which I can provide if an audit is requested.”
How much coverage do I require?
While the minimum level of insurance necessary for QLD electricians is $5 million, the question of how much insurance you need remains. Unfortunately, we can’t tell you how much you should have, but we can give you some food for thought as to what you should think about when deciding what level of coverage to get. Consider the following scenario:
- If you frequently work on contracts, a minimum quantity of coverage may be required, and you may need to raise your coverage to fulfil the need.
- Take into account the scope of the project. The greater the project’s size, the greater the risk and possible cost of a claim.
- A specified minimum level of coverage may be outlined if you are a member of certain trade organisations.
Consult a registered insurance broker for more information
With a qualified insurance broker, getting your company insurance has never been easier. Brokers understand how hectic it is to run your own business, and the last thing you want to deal with is a pile of paperwork, right?
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In a matter of seconds, you’ll receive various quotations from some of Australia’s most reputable insurers. Choose your coverage and receive all of the essential documentation in your mailbox, no need for snail mail.
Get a quote today for hassle-free business insurance.