Most business owners assume their insurance policy will protect them if something goes wrong. Fire damage, equipment loss, business interruption, that’s what you’re paying for, right? In many cases, yes. But there’s a condition that catches businesses out more often than you might think: the state of your electrical installation.
If your electrical systems haven’t been properly maintained, your insurer may have grounds to reduce or reject your claim entirely, even if your premiums are fully up to date. Here’s what you need to know.
The Small Print That Could Cost You Everything
Insurance policies for commercial and industrial properties almost universally include a requirement to maintain the premises in a safe and roadworthy condition. Electrical systems fall squarely within this obligation.
When an incident occurs a fire, an equipment failure, an injury to a member of staff insurers will investigate the cause. If poor electrical maintenance is identified as a contributing factor, and you can’t demonstrate that you’ve taken reasonable steps to keep your systems in good order, your policy may not pay out in the way you expect.
That could mean a significantly reduced settlement, a disputed claim, or in the worst cases, a full rejection.
What Does "Reasonable Steps" Actually Mean?
This is where many businesses fall short not through negligence, but simply through not knowing what’s expected of them. In practice, demonstrating reasonable electrical maintenance means:
Having a valid EICR in place. An Electrical Installation Condition Report, carried out by a qualified electrician, is the most widely recognised evidence that your electrical installation has been professionally assessed. For commercial properties this should be renewed every five years, and for industrial premises every three years. If you can’t produce a current EICR, you may struggle to demonstrate compliance in the event of a claim.
Addressing remedial work promptly. An EICR that flags C1 or C2 issues immediate dangers or potentially dangerous faults and shows no evidence of follow-up action is almost worse than having no inspection at all. It demonstrates that a problem was identified and ignored.
Keeping records. Documentation matters. Inspection reports, test certificates, records of remedial work carried out these are the paper trail that demonstrates your commitment to maintaining a safe electrical installation. Without them, it’s your word against your insurer’s.
It's Not Just About Insurance
The consequences of poor electrical maintenance extend well beyond an insurance dispute. Under the Electricity at Work Regulations 1989, employers have a legal duty to ensure that electrical systems are maintained so as to prevent danger. Failure to comply isn’t just a civil matter it can result in prosecution, significant fines, and in serious cases, personal liability for directors and managers.
The Health & Safety at Work Act 1974 reinforces this, placing a broad duty of care on employers for the safety of their staff, visitors, and anyone else who may be affected by their operations.
In short: keeping your electrical systems properly maintained isn’t optional. It’s a legal requirement and your insurance cover depends on it too.
The Cost of Inaction vs the Cost of Maintenance
It’s worth putting this in perspective. A commercial EICR typically costs a fraction of what businesses spend on their annual insurance premium. Remedial electrical work, where needed, is almost always far less expensive than the disruption, legal exposure, and financial loss that follows an uninsured or disputed claim.
The businesses that end up in the most difficult position are rarely those that knew about a problem and couldn’t afford to fix it. They’re the ones that simply didn’t know the risk existed until it was too late.
How Arrow Electrical Services Can Help
At Arrow Electrical Services, we help commercial and industrial businesses across Cheshire and the UK stay safe, compliant, and properly covered. As NICEIC approved contractors, we carry out EICRs, identify and address remedial issues, and provide the full documentation you need to demonstrate that your electrical installation is properly maintained.
If you’re not sure when your last inspection was, or if you’ve never had one carried out, now is the time to get it sorted before you need to make a claim.
Don't Wait Until You Need to Make a Claim
The time to get your electrical maintenance in order is before something goes wrong — not after.
Get in touch with Arrow Electrical Services today for a no-obligation consultation and to arrange your EICR.
Call us on 01244 830419 or head over to our contact page.
Arrow Electrical Services provide specialist industrial, commercial and Atex Electrical design, installation and maintenance solutions as well as manage projects across multiple trades using trusted specialist contractors across the UK.
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Based in Chester, our experienced team operates nationwide.
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Lightfoot St,
Hoole,
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CH2 3AD
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