Specialist Electrical Cover

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.

What insurance do electrical engineers need?

Electrical engineers need insurance because their work involves design, advice or certification.

Professional Indemnity (PI)

Financial loss caused by design, advice or calculation errors.

Public & Products Liability

Injury or property damage to others caused by your work.

Business Pack

Office or workshop cover for fire, theft and business interruption.

Tools and Equipment

Portable test gear, laptops and sometimes drones.

Cyber & Tech Errors

Data loss, cyberattacks and some software mistakes.

Management Liability

Investigation and legal defence for directors and officers.

Contract Works

Work during construction if you act as a contractor.

Run-off PI

Past work after you retire or close your business.

What does PI normally cover?

PI protects you when a client says your professional work caused a financial loss. It typically covers:

Design errors or bad calculations
Incorrect cable, breaker or protection settings
Wrong or unsuitable specifications
Alleged failure to meet AS/NZS 3000 causing loss
Missed defects during inspection or certification
Programming faults in BMS, PLC, SCADA
Defence costs for claims made while active

What is not usually covered?

Standard exclusions to be aware of include:

Problems you knew about before policy started
Intentional or reckless non-compliance with standards
Bodily injury to your own employees
Asbestos-related claims (unless separately arranged)
Contractual penalties or liquidated damages

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.

Action: 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).

Action: 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.

Action: Check your REC licence, your engineer registration and job requirements.

Other States

• Rules depend on your licence and your contracts.

Action: Check your local regulator and tender requirements.

Questions electrical engineers ask

I’m “just a contractor” who follows the plans. Do I really need insurance?

Yes. If you ever select a cable size, choose a circuit breaker, divert a cable tray due to site conditions, or sign a compliance certificate, you are performing "design work." Public Liability covers you if you accidentally damage property (like drilling a pipe). Professional Indemnity covers you if your advice or installation choices cause the client a financial loss (like a system that doesn't work), even if nothing is physically broken.

Does my PI cover solar PV, battery storage and off-grid systems?

Many standard policies exclude "Power Generation" or have strict sub-limits for solar and battery work due to the fire risks. You must explicitly tell us if you work with renewables (AS/NZS 5033 or AS/NZS 4777). We will ensure your policy description includes these activities so you are fully protected.

What happens if a fire happens 5 to 10 years after I signed off the job?

You can still be held liable. In many states (like NSW and VIC), clients have up to 10 years from the project's completion to bring a claim regarding building work. Because Professional Indemnity (PI) is "claims-made" insurance, it must be active at the time the claim is made, not when the work was done. If you retire or close your business, you need "Run-Off Cover" to stay protected for this 7-10 year tail.

Will the policy respond if I accidentally brick a BMS or SCADA system with a firmware update?

Standard PI often excludes software glitches and update errors. Tank can structure your policy to include Technology Errors and Omissions (Tech E&O). This ensures that if a programming fault, failed update, or logic error causes a system crash or downtime, your liability for the client's lost revenue is covered.

I’m accused of undersizing switchroom ventilation and causing a transformer failure. Is that covered?

Yes. This is a classic "design error" or "calculation failure" claim. Your Professional Indemnity policy is designed to cover the financial loss suffered by the client. In this case, that would include the cost to rectify your ventilation design and the replacement cost of the transformer. (Provided you were not aware of the problem before taking out the policy).

Does PI cover me if I certify someone else’s installation (e.g., as a RPEQ or independent inspector)?

Yes, but this is a high-risk activity, so your policy’s Business Description must explicitly state "Certification" or "Inspection Services." Crucial Note: Most policies have a "Conflict of Interest" exclusion. This means you are covered when checking third-party work, but you generally cannot sign off on your own company’s installation work ("marking your own homework") under a standard independent PI policy.

My client is withholding payment and threatening to sue because the EV chargers I specified don’t meet their grant requirements. Is this covered?

Yes, provided the error was due to your professional negligence (e.g. you missed a specification detail or gave incorrect advice). PI insurance is designed to cover financial loss caused by professional errors. Since your client has lost money (the grant funding) due to your design choice, your policy is triggered to help defend you or settle the loss.

What are some claims examples?

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.

Data-Centre Blackout

Protection Discrimination

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

Undersized Cabling

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

Performance Guarantee

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

Logic Error

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-story tower during business hours, leading to fire brigade call-out fees and tenant lawsuits.

Electric Shock from VSDs

RCD Selection

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

Cyber Attack

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

Specification Error

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 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.

Fully Australian-Owned and Independent

Tank gives unbiased advice tailored to your electrical engineering risks, whether it's AS/NZS 3000 compliance or EV charging station designs.

Straight Talk with Brokers

You'll speak directly to Tank’s experienced team who get the finer details of your work.

Market-Beating Comparisons Across Top Insurers

Tank scours options from different insurers and niche underwriters to land you broader protections at sharper rates. Tank’s established relationships mean we can negotiate terms, often uncovering hidden value in your policy.

Fast Service and Adjustments

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.

Claims Advocacy that Delivers

Tank’s team connects with insurer’s claims teams, guiding you through every step for faster, fairer resolutions.

Proactive Policy Review

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

As a consultant: Yes. If you relied on manufacturer data that turned out to be false, your PI policy defends you against allegations of negligent selection.

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.

Yes, but usually via two different sections.

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.

Absolutely. Standard policies often have "Automotive" or "Software" exclusions that leave you exposed. EV design is more than just cabling; it involves Load Management Systems (LMS), OCPP software protocols, and strict government grant requirements. Tank ensures your policy wording specifically covers these "smart" technologies and compliance with AS/NZS 3000:2018 Amendment 2.

Standard policies typically exclude JVs. You need a specific Joint Venture Extension to cover your liability. Be careful: standard annual policies often limit cover to your proportion of the liability (e.g., 50%). To avoid being left carrying the partner's share of a claim (Joint & Several Liability), we often recommend a Single Project PI policy that insures the whole consortium.

Yes, immediately. Most standard Electrical Engineering policies have a strict exclusion or cap for work above 33 kV. If you work on zone substations (66 kV / 132 kV) or transmission lines, we need to access specialized Energy Underwriters to ensure you are protected.

Yes, provided the revisions were due to a professional error (negligence) and not just slow work. Your policy has two powerful weapons here: Mitigation Costs (The insurer can pay the costs to rectify the design immediately to prevent the delay from getting worse) and Defence Costs (If the client sues for the delay damages, the policy pays your legal fees to defend the claim).

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