An unsatisfactory EICR has real consequences for insurance, and this is often the argument that motivates reluctant clients to act on the remedial work.
Most building and landlord insurance policies include conditions requiring the insured to maintain the property in a safe condition and to comply with all applicable regulations. An unsatisfactory EICR is documentary evidence that the electrical installation has identified defects. If those defects are not addressed and an electrical incident subsequently occurs — a fire, a shock injury, or worse — the insurer may refuse to pay the claim.
The logic is straightforward: the insurer provided cover on the basis that the property would be maintained safely. The unsatisfactory EICR proves the policyholder knew about the defects. Failure to act on those defects can be treated as a breach of the policy conditions, voiding the cover entirely — not just for the electrical incident, but potentially for the entire policy.
Some insurers now require evidence of a satisfactory EICR before providing or renewing cover. This is becoming increasingly common for landlord insurance, commercial property insurance, and HMO insurance. As an electrician, mentioning the insurance implications to the client can be an effective way to motivate prompt remedial action.
For the electrician, professional indemnity insurance is also relevant. If you issue an EICR and the client subsequently claims that the report was inaccurate, your PI insurance should cover the claim. However, accurate and thorough documentation is essential — a well-completed EICR with clear observations, correct classification codes, and evidence of client notification is your best defence.