Insurance for Electrical Engineers
Whether you're designing switchboards, supervising installations, working on renewable energy projects or running an electrical contracting firm, one allegation of negligence can put your reputation and finances at risk. Get the right coverage so you're not left exposed.
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Understanding Your Cover
What insurance do electrical engineers need?
Electrical engineers need insurance because their work involves design, advice or certification — activities that carry significant professional liability.
From switchboard design and protection coordination to renewable energy systems and building automation, the margin for error has vanished. With strict regulatory enforcement under the NSW DBP Act, RPEQ requirements, and aggressive compliance audits, you are now personally accountable for design certification like never before.
Coverage Overview
Essential coverage for electrical engineers
Your insurance package should be tailored to your specific discipline, project types, and contractual requirements. Here are the key covers to consider:
Covers financial loss caused by design, advice or calculation errors. Essential if you design, specify, certify or provide professional advice on electrical systems.
- Design errors or incorrect calculations
- Wrong cable, breaker or protection settings
- Alleged failure to meet AS/NZS 3000
- Programming faults in BMS, PLC, SCADA
- Legal defence costs while your policy is active
Covers injury or property damage to others caused by your work or the products you supply.
- Accidental property damage during site visits
- Third-party injury from your operations
- Defective products you've supplied or installed
- Legal defence and settlement costs
Comprehensive cover for your office, workshop, and business operations.
- Fire, theft and storm damage
- Office contents and electronics
- Business interruption cover
- Glass and signage
Protects your portable tools, test gear and technology.
- Portable test equipment and meters
- Laptops and tablets
- Drones used for inspections
- Theft from vehicles or sites
Covers data loss, cyberattacks and some software mistakes.
- Ransomware and malware attacks
- Data breach notification costs
- Business interruption from cyber events
- Technology errors and omissions
Protects directors and officers against investigations and legal action.
- Regulatory investigations (WorkSafe, ASIC)
- Employment practices liability
- Director and officer defence costs
- Company reimbursement
Covers work during construction if you act as a contractor.
- Damage to works in progress
- Materials and equipment on site
- Existing structures you're working on
- Delay in start-up cover
Covers claims made after you retire or close your business for past work performed.
- 7-10 year tail cover available
- Essential for claims-made policies
- Protects against late-emerging claims
- Required by many professional bodies
PI protects you when a client says your professional work caused a financial loss. It typically covers:
Design Errors
Design errors or bad calculations that cause client losses.
Incorrect Settings
Incorrect cable, breaker or protection settings.
Specification Errors
Wrong or unsuitable specifications for the project.
Standards Compliance
Alleged failure to meet AS/NZS 3000 causing loss.
Inspection Failures
Missed defects during inspection or certification.
Control Systems
Programming faults in BMS, PLC, SCADA systems.
Defence Costs
Legal defence costs for claims made while your policy is active.
Standard exclusions to be aware of include:
Prior Knowledge
Problems you knew about before the policy started.
Intentional Non-Compliance
Intentional or reckless non-compliance with standards.
Employee Injury
Bodily injury to your own employees (Workers' Comp covers this).
Asbestos Claims
Asbestos-related claims (unless separately arranged).
Contractual Penalties
Contractual penalties or liquidated damages.
Regulatory Requirements
What do I need in my state?
A quick state-by-state snapshot so you know what to check first.
Queensland
- RPEQ engineers must take reasonable steps to keep PI that fits their work.
- Some QBCC fire-design licence classes require PI.
- Public liability is standard for contractors.
Check your RPEQ registration, QBCC class and contract clauses.
New South Wales
- Registered design practitioners and some engineers working on regulated buildings must hold PI.
- Check if your project is a 'regulated building' (Class 2, 3, or 9c).
Check if your project is a 'regulated building' and your registration limits.
Victoria
- Registered Electrical Contractors must hold public liability of at least $5 million.
- Some professional engineers must hold PI for registration.
Check your REC licence, your engineer registration and job requirements.
Other States
- Rules depend on your licence and your contracts.
- Requirements vary by state and territory.
- Tender documents often specify minimum cover levels.
Check your local regulator and tender requirements.
Common Questions
Questions electrical engineers ask
Industry Reality
Why claims are on the rise
The margin for error has vanished. "Standard" projects now involve complex integrations — from BESS (Battery Storage) and EV infrastructure to smart-building BMS interfaces.
At the same time, the regulatory landscape has shifted. With the NSW DBP Act, strict RPEQ enforcement, and aggressive compliance audits, you are now personally accountable for design certification like never before.
Combined with soaring material costs, even a minor calculation error can spiral into a six-figure claim. In today's litigious construction market, if a project runs late or over budget, the electrical engineer is often the first target for cost recovery.
Elevated Risk Environment
Electrical engineers working on renewable energy, data centres and critical infrastructure face increased scrutiny and liability exposure.
Professional registration bodies now actively enforce insurance adequacy requirements.
Claims Examples
What are some claims examples?
Real scenarios that illustrate why comprehensive Professional Indemnity and Public Liability coverage is essential for electrical engineers.
Data-Centre Blackout
A protection coordination error meant a minor downstream fault tripped the Main Switchboard instead of the local breaker. This caused a total blackout of a Tier 3 facility for 14 hours, triggering massive business interruption claims from tenants.
Factory Fire
An electrical contractor installed sub-main cables that were insufficient for the factory's peak load. The resulting thermal runaway melted the insulation and caused a significant structural fire, destroying the switchroom.
Battery Storage Shortfall
A solar designer calculated the battery ROI based on 'nameplate' capacity rather than 'usable' capacity (Depth of Discharge). When the system failed to deliver the promised energy savings, the client sued for the difference in value.
High-Rise Fire Matrix Failure
An engineer omitted a specific logic step in the Fire Indication Panel (FIP) cause-and-effect matrix. This triggered a false full-building evacuation of a 42-storey tower during business hours, leading to fire brigade call-out fees and tenant lawsuits.
Electric Shock from VSDs
A contractor installed standard Type A RCDs on circuits feeding Variable Speed Drives (VSDs). The VSDs leaked DC current, 'blinding' the RCDs. When a fault occurred, the RCD failed to trip, resulting in a serious electric shock and a WorkSafe investigation.
Critical Infrastructure Data Breach
Drone footage and schematics of a client's private substation were stolen from an engineer's server during a ransomware attack, exposing the client to security risks and requiring a full security audit.
EV Charger Grant Non-Compliance
An engineer specified EV chargers that did not meet the 'Smart Charging' (OCPP) protocols required by a government grant. The client lost their funding eligibility and sued the engineer for the lost grant money.
Why Choose Tank
Why do many electrical engineers choose Tank Insurance?
Electrical engineers choose Tank Insurance because the service is practical, clear and built around how real projects work.
Tank gives unbiased advice tailored to your electrical engineering risks, whether it's AS/NZS 3000 compliance or EV charging station designs.
You'll speak directly to Tank's experienced team who get the finer details of your work.
Tank scours options from different insurers and niche underwriters to land you broader protections at sharper rates. Our established relationships mean we can negotiate terms, often uncovering hidden value in your policy.
Need a Certificate of Currency for that urgent tender? Or a quick tweak for a new solar project? Tank can deliver quick quotes, policy changes and docs, keeping you compliant and on-site without the hassle.
Tank's team connects with insurer's claims teams, guiding you through every step for faster, fairer resolutions.
Standards evolve and so does your scope, from microgrids to battery storage. Tank schedules complimentary annual check-ins to refine your cover, flag emerging risks like cyber threats to BIM models and keep you ahead of the curve with risk management tips and industry alerts.
Frequently Asked Questions
Frequently Asked Questions
As a contractor/supplier: Caution is needed. If you directly import gear (where the manufacturer has no Australian presence), Australian Consumer Law deems you the manufacturer.
Loss of Documents: Covers the cost to manually redraw or reconstitute your designs if physical files are destroyed (e.g., fire or theft).
Cyber Extension: Standard policies often exclude digital attacks. Tank can add Cyber Insurance to cover the costs of data recovery, ransomware negotiation, and system restoration if your server or BIM models are wiped by a virus.
Mitigation Costs: The insurer can pay the costs to rectify the design immediately to prevent the delay from getting worse.
Defence Costs: If the client sues for the delay damages, the policy pays your legal fees to defend the claim.
ENGINEERING RESOURCES
Guides for Engineers
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Protect your electrical engineering business with a tailored insurance package. Call us on 02 9000 1155 or request a quote online.