NAPIT Insurance & Risk Guide for Electrical Contractors
NAPIT-registered electricians operate in one of the highest-risk skilled trades. From testing and inspection to EV chargers, PV systems and commercial installations, electrical contractors face significant liability exposure.
This guide, created by SRS Insurance, explains:
- The key risks NAPIT contractors face
- What insurance types are most important
- Why some policies fail to protect electricians
- The exclusions you need to be aware of
- How to protect yourself from expensive claims
This guide is not compliance or audit advice.
It is insurance and risk guidance tailored for NAPIT installers.
Key Risks for NAPIT Electrical Contractors
NAPIT electricians work across a wide range of installations, increasing exposure to:
1. Electrical Fire & Failure
Incorrect wiring, loose terminations, overloaded circuits and installation faults can lead to:
- Fire damage
- Electrical failure
- Major loss claims
Some claims exceed £100,000+.
2. Testing, Inspection & Certification Liability
NAPIT contractors often carry out:
- EICRs
- Initial Verification
- Periodic testing
- Commercial inspection reports
Errors in testing or certification expose contractors to:
- Claims from property owners
- Disputes with landlords
- Legal action from clients
- Financial losses due to incorrect reporting
This is where Professional Indemnity (PI) is crucial.
3. EV Chargers, Solar PV & Battery Storage
NAPIT electricians are commonly involved in:
- EV charge point installation
- Solar PV installs
- Battery storage systems
- Smart home energy management
Risks include:
- Overheating
- Incorrect load calculations
- Fire from inverter issues
- Faulty installation
- Charging system malfunctions
Many generic insurance policies exclude these technologies unless specifically included.
4. Higher-Risk Commercial Environments
NAPIT contractors frequently operate in:
- Factories
- Warehouses
- Retail units
- Schools
- Hospitals
- Farms
These require higher PL limits and more robust policy wording.
ssential Insurance Types for NAPIT Contractors
Below are the core insurance protections electrical contractors should consider.
1. Public Liability Insurance (PL)
Protects against injury or property damage caused during work.
Recommended limits:
- Domestic-only: £2m–£5m
- Commercial/industrial: £5m–£10m
PL should include:
- Electrical installation & testing
- Domestic, commercial & industrial work
- EV/PV/battery installation
- “Property worked upon” cover
- Resulting damage protection (recommended)
2. Professional Indemnity Insurance (PI)
PI protects NAPIT installers who carry out:
- EICRs
- Landlord reports
- Verification & inspection
- Certification work
- Electrical design/specification
- Compliance reports
Example risks:
- Missing faults
- Wrong coding
- Incorrect reporting
- Certifying unsafe systems
PI recommended limits:
£250k – £1m
3. Employers’ Liability Insurance (EL)
Legally required for contractors with:
- Staff
- Apprentices
- Trainees
- Labour-only subcontractors
Mandatory limit: £10m
4. Tools & Equipment Insurance
Important for electricians using:
- MFTs (multi-function testers)
- Insulation resistance testers
- PV test kits
- Power tools
Tools are high-value and heavily targeted for theft.
5. Contract Works Insurance
Useful for:
- New builds
- Renovation projects
- Long-term installations
- Commercial fitouts
Covers materials, installations and work in progress.
Common Insurance Mistakes NAPIT Electricians Should Avoid
Buying generic ‘builder/tradesman’ insurance
These often exclude:
- Electrical work above low voltage limits
- Testing & inspection
- Certification
- Commercial work
- EV/PV installs
Dangerous for electrical contractors.
Assuming PI is optional
If you test, inspect or certify — PI is strongly recommended.
Incorrect or vague trade descriptions
Your policy must list:
- Electrical installation
- Electrical testing
- Inspection & certification
- EV/PV/battery (if applicable)
Insufficient PL cover for commercial clients
Many commercial clients require:
- £5m minimum
- Sometimes £10m for public sector work
No subcontractor cover
If you use labour-only subcontractors, you need EL and correct PL extensions.
Policies that exclude ‘property being worked upon’
This exclusion can invalidate a claim involving:
- Consumer units
- Circuit work
- Cabling
- Distribution boards
- Switchgear
NAPIT contractors must check for this.
Typical Claims Faced by NAPIT Contractors
Fire From Faulty Wiring (£110,000+)
Loose neutral connection causes property fire.
Incorrect EICR Coding (£30,000+)
EICR incorrectly rated “C2” instead of “C1,” leading to client dispute after electric shock incident.
EV Charger Overheating (£20,000+)
Incorrect load calculation causes melting and property damage.
Solar PV Fault (£15,000+)
Defective wiring and poor inverter configuration leads to equipment failure.
Theft of Testing Equipment (£2,000–£10,000+)
Stolen tools causing project delays.
These examples illustrate the importance of robust insurance.
Recommended Insurance Checklist for NAPIT Contractors
NAPIT installers should consider:
- Electrical installation cover
- Electrical testing & certification
- PI for EICRs & inspection
- EV charger installation cover
- Solar PV & battery storage cover
- “Property worked upon” cover
- Tools/equipment protection
- Employers’ Liability (if applicable)
- Appropriate PL limits (£2m–£10m)
- Commercial/industrial site cover
This supports risk protection only, not compliance.
Why NAPIT Contractors Choose SRS Insurance
- We specialise in electrical contractor insurance
- Knowledge of testing, inspection & EV/PV systems
- A-rated insurers
- Fast documentation
- Trade-specific policies
- No unsuitable exclusions
- Designed for both sole traders and multi-team contractors
SRS Insurance is widely recognised as a trusted partner for electrical installers across the UK.
