Reviewed by licensed advisers at Smiths Insurance & KiwiSaver (FSP712931) · Updated 11 November 2026

Electrician Insurance NZ: Public Liability and the Covers Around It

An electrician in New Zealand usually starts with public liability, which pays when your work damages someone's property or injures a third party. Tools, the work vehicle and a certificate of currency for clients come next. Statutory liability matters once you employ people. Licensing does not replace any of this, because it decides who may do the work, not who pays when it goes wrong.

In short

What main contractors ask electricians for

  • A certificate of currency showing public liability is in force
  • A minimum limit, which changes job to job
  • Sometimes evidence of cover for staff or subcontractors
  • A clause making you responsible for your own tools and plant

Hidden faults

A fault behind a wall or ceiling can show up months after you leave.

Test gear in the van

One break-in can take every tester, drill and lead at once.

Design advice

Specifying solar, lighting control or an EV layout can sit outside public liability.

Work out what to raise

Tick what applies to you

  • We work in houses and renovations

    A fault behind a wall can show up months after you leave.

    Covers to raise: Public liability, Tools and equipment

  • We do commercial fit-outs

    Main contractors often name a limit in the subcontract.

    Covers to raise: Public liability, Contract works

  • We work on industrial sites or plant

    Covers to raise: Public liability, Statutory liability

  • We install solar, batteries or EV chargers

    Specifying a system can sit outside public liability.

    Covers to raise: Public liability, Professional indemnity

  • We have an apprentice or employee

    Employers carry duties under the Health and Safety at Work Act 2015.

    Covers to raise: Statutory liability

  • We use subcontractors

    Covers to raise: Statutory liability, Public liability

  • Test gear and tools live in the van

    One break-in can take every tester and lead at once.

    Covers to raise: Tools and equipment, Business vehicles

  • We design lighting, controls or layouts

    Covers to raise: Professional indemnity

What these covers do not pay

  • Replacing or rewiring your own faulty work.
  • Your own tools and test gear under public liability.
  • Work outside your class of registration, or by an unsupervised worker.
  • Wear and tear on instruments and leads.
  • Health and safety fines, which can never be insured (Health and Safety at Work Act 2015, s 29).

General information only. Whether a cover responds depends on the policy wording.

Which clause is in your contract?

  • Own tools and plant

    The contract says you bring and look after your own tools, equipment or machinery, so damage or theft of them sits with you rather than the client.

    Covers to raise: Tools and equipment, Business vehicles

    What it does not decide: It does not decide whether those items are insured, on site or in a vehicle, or hired in. Contract works and public liability policies usually do not pick up your own tools.

  • Subcontractor cover

    The contract asks that anyone you sub the work to carries their own insurance, or that your policy responds to their work. Insurers often ask how much work you sub out and whether you check your subbies.

    Covers to raise: Public liability, Contract works, Statutory liability

    What it does not decide: It does not decide whether your policy covers a subcontractor, or whether theirs is enough. Both depend on the wordings and on what you declared.

  • Interested party noted

    The client, head contractor or financier asks to be named on your policy so they are told about changes such as cancellation. Wording varies, and in some contracts it means something different from being an extra insured.

    Covers to raise: Public liability, Contract works

    What it does not decide: Being noted does not by itself give that party cover under your policy or a right to claim. That depends on how the insurer words it.

General information, not legal advice. The full clause and the policy wording decide how it applies.

Check your certificate of currency against the contract

Clients and main contractors in this trade ask for:

  • A certificate of currency showing public liability is in force.
  • A minimum limit, which changes job to job.
  • Evidence of cover for staff or subcontractors.
  • Yearly evidence for some hospital, school and landlord contractor registers.

Check the insured name, limit and dates match the contract. The policy wording, not the certificate, decides what is covered. How a certificate of currency works

What each cover may pay, and what it usually does not

  • Public liability

    May respond to
    Fire, water or damage to a client's property traced to your work.
    Common trigger
    A fault found after you have left the job.
    Usually not covered
    The cost of fixing your own faulty work.

  • Tools and equipment

    May respond to
    Test instruments, cable tools and drills taken from the van.
    Common trigger
    A break-in at the van, home or workshop.
    Usually not covered
    Wear and tear, and gear left unlocked or in view.

  • Business vehicles

    May respond to
    The work van, and damage it causes on the road.
    Common trigger
    A crash on the way to a job.
    Usually not covered
    Stock and gear inside, unless the policy says so.

  • Statutory liability

    May respond to
    Defence costs if a regulator investigates or prosecutes, depending on the wording.
    Common trigger
    A regulator investigates a site incident.
    Usually not covered
    Health and safety fines, which can never be insured.

  • Professional indemnity

    May respond to
    A client claiming your design or advice cost them money.
    Common trigger
    A solar or lighting control layout that does not perform.
    Usually not covered
    Physical damage to property, which sits under public liability.

If something goes wrong

  • A sparky drills into a hidden water pipe

    A drill goes through a pipe behind a wall during a rewire, and the leak runs for days before anyone notices.

    May respond: Public liability

    Have ready

    • Photos of the damage and the wall
    • The job sheet and date of work
    • Your certificate of currency

  • The van is broken into overnight

    Thieves take testers, drills and cable tools from the van parked at home.

    May respond: Tools and equipment, Business vehicles

    Have ready

    • The police report number
    • Serial numbers or purchase invoices
    • Photos of the van and how it was locked

  • A fault starts a fire months later

    A client's fire is traced to a connection made during your job last winter.

    May respond: Public liability

    Have ready

    • The job record and any compliance paperwork
    • The fire investigator's report
    • Your policy wording and certificate

  • A solar design falls short

    A system you specified underperforms, and the client says your advice cost them money.

    May respond: Professional indemnity

    Have ready

    • The quote and design brief
    • Emails showing what you advised
    • Performance data from the client

Typical examples, not real claims. ACC deals with most injuries, so an injury claim is mostly about property and legal costs. Whether a claim is paid depends on the policy wording and the facts.

Licence versus insurance

A licence is not insurance.

What the licence or register says

  • Registers electrical workers and issues practising licences.
  • Its practising licence page lists a competence programme, a fit and proper person declaration and a fee. It does not mention insurance (checked 11 November 2026).

Source: Electrical Workers Registration Board

Why electrical work is its own risk

Most of what you install ends up behind plasterboard, under floors or above ceilings. A loose connection or damaged cable may sit unnoticed for months. When it fails, the loss is usually to the client's building or contents, and the client or their insurer looks back at who did the work.

Public liability responds to claims that your work, or your presence on site, caused damage to someone else's property or injury to a third party. The claims electricians worry about:

Whether a particular claim is covered depends on the wording and the facts, so read the exclusions.

What your licence does not do

Electrical workers are registered through the Electrical Workers Registration Board. Its practising licence page lists a competence programme, a fit and proper person declaration and a fee. As at 11 November 2026 it does not mention insurance, so a licence gives you no cover and the Board does not ask for a policy. The expectation comes from your clients and contracts. Insurers may ask about your registration class at application, so have it ready.

What clients and main contractors ask for

Residential customers rarely ask. Commercial work is different. Builders, project managers and larger electrical firms commonly put an insurance clause in the subcontract. Typical asks:

The limit is set by the contract, not by a rule. Read the clause before the quote goes out, and find out early if your limit is lower than the one asked for. The certificate of currency page explains the document, and NZS 3910 insurance requirements covers the wording larger contracts use. Some hospitals, schools and large landlords run contractor registers that ask for evidence every year, so keep the certificate on your phone.

Covers around public liability

Cover The question it answers When it matters
Public liability Who pays when my work damages property or injures a third party? Almost every job
Tools and equipment What if the van is broken into and the test gear is gone? Anyone carrying gear between sites
Business vehicle What if the van is written off or stolen? Anyone using a vehicle for work
Professional indemnity What if advice or a design I gave turns out to be wrong? Lighting control, solar and battery, EV charger layouts
Statutory liability Who helps with defence costs if a regulator investigates? Once you employ staff or use subcontractors
Cyber What if my quoting and invoicing systems are hacked? Firms holding client data on cloud software

Policies often set conditions on how tools are stored when a van is left unattended, and limits for tools in transit can differ from tools on site. If you design or specify as well as install, a claim might be about the advice rather than physical damage, which can fall outside public liability.

For the wider trade picture, see tradie insurance NZ and the business insurance hub.

Staff and statutory liability

Take on an apprentice and you are an employer with duties under the Health and Safety at Work Act 2015. Statutory liability can respond to defence costs when a regulator investigates. It cannot pay a health and safety fine: section 29 makes any insurance against those fines of no effect.

What policies usually leave out

Every policy is different, so use this as a prompt for questions:

The workmanship point trips people up most. Public liability usually pays for the damage a defect causes, not for fixing the defect.

Your own income

ACC covers accidents, not illness. See ACC for contractors, income protection for tradies and life insurance for electricians. If the business depends on one or two people, read business protection.

How we help

A Smiths adviser will phone you to talk through which covers to look at for the way you work. Some business covers we refer to another licensed Financial Advice Provider, and we will tell you who, and how they are paid, before your details go to that firm. There is no instant online price. Smiths Insurance & KiwiSaver may receive a commission or referral payment if you buy. Cover and price depend on insurer underwriting and the policy wording. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931).

Frequently Asked Questions

Do electricians need public liability insurance in NZ?

The practising licence requirements published by the Electrical Workers Registration Board do not mention insurance. In practice, main contractors and commercial clients often ask for it in the contract, so check the clause before you quote.

What limit of public liability does an electrician need?

There is no single figure. The limit is usually set by the contract or the client. Ask what they want before you quote, then tell your adviser.

Does it cover the cost of fixing my own faulty work?

Usually not. It generally responds to the damage a defect causes, not the cost of repairing the defect. Check the wording.

Does an EV charger or solar install need anything extra?

If you design or advise as well as install, a claim might be about the advice rather than physical damage. Ask your adviser how professional indemnity fits with public liability.

References

Related industries

Protect the people behind the business

Liability cover protects the business from claims. If you or a business partner could not work, or died, key person and shareholder cover can help keep the business, and your family, going.

  • Key person cover, if the business relies on you
  • Shareholder cover, so partners can buy each other out
  • Income protection for owners and the self-employed

Check the contract's limit before you quote

A licensed Smiths adviser phones you and asks what electrical work you do, whether you have staff, and what limit the contract or client wants. If we refer you to another licensed firm, we tell you who first. Smiths Insurance & KiwiSaver may receive a commission or referral payment if you buy.

A licensed Smiths adviser phones you. If we refer you to another licensed firm we tell you who first and how they are paid.

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