How Much Professional Indemnity Insurance Do I Need for an Electrician?

When Do Electricians Need Professional Indemnity Insurance?

PI insurance is important if you:

• Provide designs, layouts, or specifications

• Recommend systems or materials that may be relied upon

• Work on design & build contracts

• Offer consultancy or project management services

• Work on commercial or public sector projects

If your advice causes financial loss to a client, you could be liable — even years later.

How Much Cover Is Right for You?

The right level of professional indemnity insurance depends on:

1. Contractual Requirements

Some clients or main contractors may specify a minimum amount, especially on commercial or government jobs. Common requirements:

• £250,000 for small-scale domestic work

• £500,000 for light commercial projects

• £1 million or more for public sector or large commercial tenders

2. Nature of Your Work

If you only give basic advice, a lower limit may be fine.
If you design electrical systems, specify safety-critical components, or take on project oversight, you’ll need a higher level.

3. Claim Risk

Consider the financial impact of a potential claim. If your advice could lead to costly faults, system failure, or legal disputes — don’t underinsure.

Is Higher Cover Always Better?

Yes — up to a point. While higher limits give better protection, you’ll pay more in premiums. But underinsuring can leave you personally liable, which is a far greater risk.

At ABA Insurance, we typically recommend a minimum of £500,000 for electricians offering any form of design or technical advice.

Can I Change the Cover Later?

Yes. You can increase your limit mid-term or at renewal if your contracts change. It’s better to start with the level your current clients require and review it regularly.

What Affects the Cost of Electricians Insurance?

Several factors influence your premium:

• Level of cover – Higher liability limits mean higher costs

• Business type – Sole trader or limited company

• Number of employees – Affects employers’ liability premium

• Commercial vs domestic work – Commercial and high-voltage work costs more

• Claims history – Past claims can push up your premium

• Tool value – The more gear you carry, the more it costs to cover

Can I Get Cheaper Insurance?

Yes — but cheaper isn’t always better. Low-cost policies may:

• Exclude overnight tool cover

• Not include design-related work

• Have higher excesses or slower claims processes

It’s important to choose a policy that reflects how you actually work.

Get a Quote for Electricians Insurance

At ABA Insurance, we help electricians across the UK get tailored insurance at competitive prices.

Need a quote or want to review your current policy?
Call us on 01474 833 322 or get a fast online quote at: www.abainsurance.co.uk/trades-insurance-quote/