Electrical contracting
Electrical Contractors Insurance
for UK commercial, industrial and M&E contracting companies
Electrical contractors insurance is a combined UK business policy for electricians and electrical contracting firms. It brings public and employers’ liability, contract works, tools and plant together in one policy, with professional indemnity added for inspection, testing and design work.
- Liability, works, tools and plant
- Commercial, industrial and M&E
- Inspection, testing and design cover
Quick answerElectrical contractors insurance is a combined policy for a UK electrical contracting company. It brings employers and public liability, contract works, tools, plant and business interruption together in one arrangement, and adds professional indemnity where you inspect, test or design. Tell MyMoneyComparison.com about the company once, and specialist UK brokers can come back with quotes to compare.
At a glance
Electrical Contractors Insurance at a Glance
The short answers to the questions electrical contracting companies ask most.
| Question | Quick answer |
|---|---|
| What does it cover? | Employers and public liability, the work in progress, tools, plant, and the income you lose if you stop. |
| Is any of it compulsory? | Employers liability is, once you employ anyone. Public liability is not required by UK law. |
| So why does everyone have public liability? | Because scheme registration and almost every contract you work under demand it. |
| Do I need professional indemnity? | If you inspect, test, certify or design, yes. Those are professional services, not physical work. |
| Does it cover faulty work? | Not redoing your own work. It usually does cover the damage that faulty work causes. |
| What about tools in the van? | Usually covered, often with a lower limit or none at all overnight. Check the wording. |
| Does it cover work on customer sites? | Yes, that is what public liability is for. Contract works covers the installation itself. |
| What does it cost? | It depends on turnover, wageroll, the work split, whether you test, and your claims record. |
The basics
What Is Electrical Contractors Insurance?
Electrical contractors insurance is a combined commercial policy for a UK electrical contracting business. It covers your liability to employees and to other people, the installation you are working on, your tools and plant, and the income you lose if the business stops.
It is not one fixed product. It is a commercial combined policy with the sections an electrical contractor needs, which is why a data cabling firm and an industrial M and E contractor end up with quite different policies. The biggest single variable is whether you carry out inspection and testing.
Why contractors buy it combined
- One renewal covering the people, the vans, the tools and the work in progress
- Liability limits that meet what your main contractors actually demand
- Professional indemnity alongside, where you inspect, test or design
- Accepted by competent person schemes, which set minimum limits of their own
One policy, several sections
What usually sits inside
- Employers liabilityRequired by law once you employ anyoneCore
- Public liabilityInjury or damage on a customer siteCore
- Contract worksThe installation itself while you build itUsually
- Tools and plantOn site, in the van and in transitUsually
- Professional indemnityInspection, testing, certification and designIf you test
How it works
How Does Electrical Contractors Insurance Work?
You describe the business and the work split, set your liability limits and sums insured, and the policy runs for a year. Changes during the year should be told to the insurer as they happen rather than saved up for renewal.
Describe the work accurately
The split between commercial, industrial and domestic, how much inspection and testing you do, and whether you take any design responsibility.
Set the limits and sums insured
Liability limits that match what your contracts demand, tools and plant at replacement cost, and a contract works figure that covers your largest job.
Keep it current as you grow
New activities like charge points or battery storage, a first industrial contract or a much larger job all change the risk. Declaring them costs nothing.
The work split is the single most important answer you give. Insurers rate industrial, commercial and domestic work differently, and a vague description gets rated cautiously. Ten minutes on an accurate split is worth more than haggling over the rate.
What it covers
What Does Electrical Contractors Insurance Cover?
Employers and public liability are the core, with contract works and tools and plant alongside. Professional indemnity is added where you inspect, test, certify or design, because those are professional services rather than physical work.
Employers liability
Claims from employees injured or made ill at work, including most labour-only subcontractors working under your direction. See employers liability insurance.
Public liability
Injury to other people and damage to their property while you are on their site. The section main contractors ask to see. More on our public liability page.
Contract works
The installation itself while it is being built, plus materials on site. Covered in full on our contractors all risks page.
Tools and plant
Hand and power tools, test equipment, cable drums and hired-in plant, on site and in transit, usually with a per-item limit.
Professional indemnity
Inspection, testing, certification and design. These are professional services, not physical work, so public liability does not reach them.
Business interruption
Lost income if your premises or stores are damaged and you cannot work while you recover.
Cover worth asking about
Low-carbon work
Charge points, solar and battery storage. Declare it, because it changes the risk you are asking an insurer to take.
Cyber and computer
Controls, design software and job management systems. Ours is at cyber insurance.
Fleet
Vans and vehicles sit on their own policy, at fleet insurance.
Exclusions
What Isn’t Covered by Electrical Contractors Insurance?
It does not pay to redo your own faulty work, and it does not cover advice, certification or design unless you hold professional indemnity. Some wordings also exclude heat and cutting work away from your premises. Wordings differ, so read your own schedule.
Redoing your own faulty work
If a circuit is wired badly, putting that circuit right is your cost. What is usually covered is the damage the fault causes, such as a fire, which is normally the far bigger number.
Advice and certification, without PI
A condition report or a design that turns out to be wrong is a professional services claim. Public liability does not answer it.
Heat and cutting, on some policies
Some wordings exclude work away from your own premises involving heat, flame or angle grinders. That catches ordinary cutting of tray and trunking, so check yours.
Delay and lost profit
Penalties for finishing late and your customer loss of trade are excluded, even where the delay followed damage the policy did pay for.
Wear, tear and gradual causes
Deterioration and normal maintenance are not insured events. The policy responds to sudden, accidental loss.
Work you did not declare
A first industrial contract, a much larger job, or a move into charge points and storage can all affect a claim if the insurer was not told.
The faulty work point is the one worth understanding. Rewiring a board you wired badly is yours. The building that burned because of it is normally the insurer’s, and that is where the real money sits. Electrical distribution is the largest identified source of ignition in UK non-dwelling building fires, so it is not a remote risk.
Business types
What Kind of Electrical Business Can Be Covered?
Commercial, industrial and M and E contractors, testing businesses, control and automation installers, data and cabling firms, lighting and low-carbon installers and electrical designers. What changes between them is the liability limits and whether professional indemnity is needed.
Commercial electrical contractors
Offices, retail, schools and healthcare, usually working under a main contractor and to their insurance requirements.
Industrial electrical contractors
Factories, process plant and heavy power, where the values at risk and the consequences of a shutdown are much larger.
M and E and building services
Electrical and mechanical packages together, often the largest single subcontract on a project.
Electrical testing businesses
Inspection, testing and condition reporting, where professional indemnity does most of the work.
Control and automation installers
Panels, controls and instrumentation, usually with some design responsibility attached.
See engineering company insuranceData and cabling contractors
Structured cabling, containment and comms rooms, often in occupied buildings.
Lighting and low-carbon installers
Lighting schemes, charge points, solar and storage. Declare this work, because insurers rate it separately.
Electrical design and consultancy
Specification and design rather than installation, which is professional indemnity territory.
See professional indemnityWho it’s for
Who Needs Electrical Contractors Insurance?
UK electrical contracting companies with employees: commercial, industrial and M and E firms, testing businesses, control and cabling contractors, and anyone moving into charge points, solar or battery storage. It is written for companies rather than one-person businesses.
Firms working under main contractors
Where the subcontract sets your liability limits and asks for evidence before you start on site.
Industrial and process contractors
Where a fault can stop a production line, and the claim is the customer downtime rather than your labour.
Companies that inspect and test
Issuing condition reports a landlord or buyer relies on, which is a professional exposure.
Employers with directly employed staff
Employers liability is compulsory, and labour-only subcontractors usually count as employees for it.
Firms with real tool and plant values
Test equipment, cable drums and hired-in plant add up faster than most contractors expect.
Contractors moving into low-carbon work
Charge points, solar and battery storage, which insurers treat as a declaration question.
If you hold registration with a competent person scheme, it will set minimum insurance limits of its own, typically higher than the minimum you would otherwise need. Those requirements and the competence rules behind them were tightened in October 2026, so it is worth checking your registration and your policy line up.
The dividing line
Installation Work vs Inspection and Testing
Installing is physical work, so public liability answers for it. Inspecting, testing and certifying is a professional service, so professional indemnity answers. Most electrical contracting companies do both, which is why most need both covers.
| Installation work | Inspection and testing | |
|---|---|---|
| What you are selling | Installation work, physically carried out | An opinion in writing that someone relies on |
| Which cover answers | Public liability, for injury and damage | Professional indemnity, for the report being wrong |
| When the claim arrives | Usually soon after the event | Often years later, when the report is questioned |
| If you stop doing it | The exposure stops with the work | The old reports remain, so cover needs to continue |
| Who insists on it | Main contractors and site rules | Competent person schemes and your clients |
The last row catches people out. Professional indemnity responds to the claim made against you now, not to when you did the work. A company that stops testing and drops the cover is exposed on every report it ever signed. Our professional indemnity page explains how it responds, and what it typically costs.
Pricing
How Much Does Electrical Contractors Insurance Cost?
There is no standard price. It is rated on turnover and the work split, wageroll and subcontractor payments, how much inspection, testing and design you take on, the limits you need and your claims record.
Size and people
- Annual turnoverAnd how it splits by type of work.
- Estimated wagerollOffice, supervisory and site-based.
- SubcontractorsLabour-only and bona fide, with annual payments.
- Years tradingAnd whether the work mix has shifted recently.
The work you do
- Commercial, industrial, domesticThe split, as a percentage of turnover.
- Inspection and testingWhether it is in scope, and how much.
- Design responsibilityAnything you take on paper.
- Low-carbon and high voltageCharge points, solar, storage and any HV work.
Limits and record
- Liability limitsAgainst what your contracts demand.
- Contract works sumAgainst your largest single job.
- Tools and plantIncluding what stays in vans overnight.
- Claims historyFive years, by section.
We publish no example premiums, because no UK body collects and publishes pricing for this trade. Every average in circulation is one firm describing its own book, usually dominated by sole traders, which tells a contracting company with employees and a testing department very little.
Before you start
What Information Do I Need for an Electrical Insurance Quote?
Insurers need turnover split by type of work, wageroll and subcontractor payments, how much inspection, testing and design you do, your liability limits and largest contract, tools and plant values, and five years of claims.
About the business
- Turnover for three years, split by type of work
- Estimated wageroll by category
- Labour-only and bona fide subcontractor numbers and payments
- Five years of claims
The work you do
- The commercial, industrial and domestic split
- How much inspection and testing you carry out
- Any design responsibility you accept
- Charge points, solar, battery storage and any high voltage work
Limits and registration
- Liability limits your contracts require
- Your largest single contract value
- Tools and plant values, including hired-in
- Scheme registrations and their renewal dates
Compare with MyMoneyComparison.com
How to Compare Electrical Insurance Quotes
Check that professional indemnity is included if you test, compare liability limits against what your contracts demand, and read the exclusions that bite on the work you actually do. Two quotes at the same price can be worth very different amounts.
Check professional indemnity is actually there
If you test or certify and the quote has no PI section, it is cheaper because it covers less.
Compare limits against your contracts
A quote at a lower liability limit is not a saving if your main contractor will not accept it.
Read the exclusions that hit your trade
Faulty work, heat and cutting away from your premises, and tools left in vans are where quotes differ most.
Tell us about the company once and specialist UK brokers can come back to you. We are an introducer rather than a broker, so we do not sell the policy or recommend one. Our editorial policy explains how we work.
Cutting costs
How Can I Reduce the Cost of Electrical Contractors Insurance?
An accurate work split, good certification records, secure tool storage and current scheme registration are what move the price most. Fixing a pattern of small claims and reviewing the excess also help.
Split the work accurately
A vague trade description gets rated cautiously. An honest commercial, industrial and domestic split usually gets rated better.
Keep your certification records
Test results and certificates are what defend a claim. Firms that can produce them get a better hearing.
Secure the tools and the van
Overnight storage, alarms and marking. Tool theft is the frequent claim that pushes renewals up.
Keep scheme registration current
It evidences competence, and lapsing it can put you outside what the policy was written for.
Fix a pattern of small claims
Several small losses move a renewal more than one large one. Deal with the cause and say what you changed.
Rethink the tool excess
Tool losses are the frequent, small claims in this trade. Carrying more of them yourself often buys a better rate on everything else.
Premises, stock and business interruption at your own unit sit on a separate policy. Ours is commercial property insurance.
Jargon buster
Electrical Insurance Jargon, Explained
The terms that come up most when you read an electrical contractor policy schedule.
- Public liability
- Cover for injury to other people and damage to their property while you work.
- Employers liability
- Compulsory cover for claims from your own employees, including most labour-only labour.
- Professional indemnity
- Cover for advice, design, inspection and certification being wrong.
- Contract works
- The installation itself while it is being built, plus materials on site.
- Condition report
- The written assessment of an existing installation that a client relies on.
- Competent person scheme
- Registration that lets you self-certify work, and which sets its own insurance minimums.
- Labour-only subcontractor
- Someone working under your direction, usually treated as your employee for insurance.
- Excess
- The first part of any claim that you pay yourself.
If a word in your schedule is not here, our plain English jargon guide covers the rest.
Why MyMoneyComparison.com
Comparing Specialist Electrical Cover
MyMoneyComparison.com is an FCA-authorised UK comparison service that introduces companies to specialist brokers. We do not sell insurance and we do not give advice: the broker you choose arranges the policy. Comparing is free and there is no obligation.
Form for the whole company
Describe the business, the work it takes on and the cover you need once instead of repeating yourself to each broker.
Advice given
We are an introducer, not a broker. We do not sell policies and we do not recommend one. Read our editorial policy.
Authorised and regulated
MyMoneyComparison.com Ltd appears on the FCA register under FRN 916241.
Comparing since
A UK company since 2013, working with specialist brokers across the country.
FAQs
Electrical Contractors Insurance FAQs
The questions UK electrical contracting companies ask most.
What is electrical contractors insurance?
It is a combined commercial policy for a UK electrical contracting business, bringing employers and public liability, contract works, tools and plant, and business interruption into one arrangement. Where the company inspects, tests, certifies or designs, professional indemnity is added alongside, because those are professional services.
Who can get electrical contractors insurance?
Sole traders, partnerships and limited companies doing domestic, commercial, industrial or M&E electrical work in the UK. New businesses can be quoted, and the trade description, turnover, staff and claims record shape the terms.
What does electrical contractors insurance cover?
The core is employers liability and public liability. Most contracting companies add contract works for the installation itself, tools and plant, and business interruption. Professional indemnity covers inspection, testing, certification and design. Vans and vehicles sit on a separate fleet or commercial motor policy.
Is electrical contractors insurance a legal requirement?
Only partly. Employers liability is compulsory once you employ anyone, and motor cover is required for vehicles on the road. Public liability is not required by UK law at all. It is required by competent person schemes and by virtually every contract you will work under, which is a different kind of obligation.
How much public liability cover do I need?
Enough to satisfy the contracts you work under and any scheme you are registered with, which usually means more than you would choose yourself. Main contractors commonly ask for a set minimum before you start on site, so check the subcontract before you buy rather than after.
Do I need professional indemnity as an electrical contractor?
If you carry out inspection and testing, issue condition reports, certify installations or take any design responsibility, yes. Those are professional services and public liability does not reach them. Competent person schemes generally require it where inspection and testing is within your scope.
Does the policy pay to put right my own faulty work?
No. Rewiring a circuit you wired badly is your cost to carry. What the policy normally does cover is the damage that faulty work causes, such as a fire in the building. That is usually the far bigger number, which is why the distinction matters more than it first appears.
Am I covered if my work causes a fire?
Normally yes, under public liability, for the damage to the building and to other people property. Electrical distribution is the largest identified source of ignition in UK non-dwelling building fires, so this is the realistic large claim for the trade rather than a remote one.
Are my tools covered in the van overnight?
Often, but with a lower limit, and some policies exclude it entirely unless the van is in a locked garage or compound. Tool theft from vehicles is one of the most common claims in the trade, so this is worth checking line by line rather than assuming.
Does it cover test equipment?
Usually under the tools and plant section, but test instruments are expensive and can quietly exceed a standard per-item limit. If you carry multifunction testers, thermal imaging cameras, insulation testers or similar, list them individually so they are properly insured rather than capped at a figure set for hand tools.
Are labour-only subcontractors covered?
For employers liability, usually yes. The duty follows the reality of the working relationship rather than the label on the invoice, so someone working under your direction, on your job, to your instruction is very likely your employee for this purpose. Declare them in the wageroll.
Do I need contract works cover?
If you are installing something that could be damaged before it is handed over, yes. Contract works covers the installation itself and materials on site while the job is under way. Who is required to arrange it depends on the contract, so check before assuming it is you.
Does it cover work on a customer premises?
Yes, that is what public liability is for. It covers injury to people at the property and damage to their property while you are working there. The installation you are creating is covered by contract works rather than by public liability.
What about charge points, solar and battery storage?
Declare it. Insurers treat low-carbon work as a rating and appetite question rather than something to assume, and an undeclared move into it is the kind of change that gets argued about at a claim. Tell your broker what share of turnover it represents.
Does scheme registration require insurance?
Yes, and usually at higher limits than you would otherwise need. Competent person schemes set their own minimums for public liability, and require professional indemnity where inspection and testing is in scope. The requirements and the competence rules behind them were tightened in October 2026.
What happens if my scheme registration lapses?
You lose the ability to self-certify notifiable work, which means jobs go to building control instead, at cost and delay. It can also leave your policy describing a business you no longer are, so it is worth telling your broker rather than letting the two drift apart.
Is high voltage work covered?
It is a declaration question rather than an automatic exclusion in the wordings we read. If any of your work is high voltage, say so, because it affects both whether an insurer will write the risk and what they charge for it. Do not assume it is included.
Can one policy cover everything?
For most electrical contracting companies, yes. A combined policy puts liability, works, tools and interruption with one insurer on one renewal, which leaves fewer gaps than buying each separately. Vehicles are the usual exception and sit on their own motor policy.
How much does electrical contractors insurance cost?
There is no standard price and we publish no examples, because no UK body collects and publishes pricing for this trade. What moves your premium is turnover and the work split, wageroll and subcontractor payments, how much testing and design you take on, your limits and your claims record.
Are our work vans covered by this policy?
No. Vans are insured on a separate motor policy, though the tools section can cover kit kept in them overnight. With two or more vans, a fleet policy is often simpler. See our van fleet insurance page.
Can a small electrical firm put its vehicles on one policy?
Often, yes. A few vans and a car or two can sit on one schedule with one renewal date. See our mini fleet insurance and small business fleet insurance pages.
What about company cars and larger vehicles?
Company cars, vans and heavier plant lorries can all go on a business fleet policy, each rated on its own use. See our business fleet insurance, car fleet insurance and HGV fleet insurance pages.
Does turnover affect the price?
Usually. Liability and contract works sections are often rated on turnover or wage roll, along with the type of work, the height and voltage involved and the claims record. Declare realistic figures, because they are often checked after the year ends.
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About this page
This page explains what electrical contractors insurance is, what it covers, who needs it and what moves the price, for UK electrical contracting companies with employees rather than one-person businesses. It is general information rather than advice. Policies differ, so read your own schedule and put the questions here to your broker. For the installation itself see contractors all risks insurance, for building contractors see construction company insurance, and for workshop and manufacturing exposures see engineering company insurance.
How we researched this page
- Two UK liability wordings read clause by clause, compared on the faulty work, professional services and heat exclusions
- Two contractors all risks wordings, for the contract works and tools sections
- The published rules of both major competent person schemes, for the insurance limits they require
- Health and Safety Executive guidance on compulsory employers liability, and Home Office fire statistics for England
We publish no example premiums, because no UK body collects and publishes pricing for this trade. Where wordings differ we say they differ rather than picking one and calling it the market. Three things in wide circulation are corrected here: that public liability is a legal requirement, that a policy will pay to redo work that was done badly, and that public liability covers you for a condition report that turns out to be wrong.