Queensland Electrical Fire Claims: Does $5 Million Cover Override Unlicensed Work?

No. In guidance published on 31 March 2025 after ex-Tropical Cyclone Alfred, the Electrical Safety Office said licensed electrical contractors must have at least $5 million in public liability insurance, with a $50,000 consumer protection component; the same warning said an insurer might refuse a claim if an electrical fire caused major property damage due to illegal electrical work. The $5 million requirement does not make unlicensed work lawful, override that warning or guarantee a payout. Figures checked 1 October 2026.

Does $5 million public liability cover override unlicensed work?

No. The insurance requirement and the lawfulness of the work are separate issues. A contractor carrying the required public liability cover is not the same as a claim being accepted for damage caused by unlicensed or DIY electrical work.

The relevant policy’s Product Disclosure Statement (PDS) and the circumstances of the loss still need to be checked.

What licences must a Queensland electrical contractor have?

A person performing electrical work in Queensland must hold an electrical work licence authorising that work. If a business provides electrical work services for others, it must also hold an electrical contractor licence.

The actual work may be performed by one of the contractor’s licensed electrical workers. Those workers must follow electrical safety laws, codes of practice and technical standards when doing the work.

These licensing and safety obligations are separate from the contractor’s insurance limit. A licensed contractor still does not guarantee that every insurance claim will succeed.

Why can unlicensed electrical work remain dangerous after the damage appears?

The danger may not be obvious immediately. It can emerge during a fault or over time, rather than being clear when the work is completed.

The Electrical Safety Office says unlicensed and DIY electrical work is illegal. It also creates a risk of contact with electricity, which can have deadly consequences for the person doing the work and others who come into contact with the installation or equipment. For that reason, the Office advises people never to attempt DIY electrical work.

What should I check when arranging repairs after Cyclone Alfred?

In its 31 March 2025 recovery guidance, the Electrical Safety Office urged people affected by ex-Tropical Cyclone Alfred to use only a licensed electrical contractor for repairs or rebuilding.

Before authorising work:

1. Check the business: Confirm that a business providing electrical work services holds an electrical contractor licence.
2. Check the worker: Confirm that the person undertaking the electrical work holds a licence authorising that work.
3. Check the insurance evidence: Ask what documents the contractor can provide to show the required public liability cover.
4. Understand both amounts: The cited guidance states at least $5 million in public liability insurance with a $50,000 consumer protection component; it does not say those figures should be added together.
5. Read the relevant PDS: Check how the policy deals with electrical fires, illegal work and the circumstances of the claimed loss.
6. Ask about uncertainty: If the work, cause or damage is unclear, put those questions to the contractor and insurer in writing before relying on an assurance about cover.

What can I do about unlicensed or damaged electrical work?

The Electrical Safety Office accepts complaints about unlicensed or damaged electrical work. Do not attempt to correct suspected electrical work yourself.

If an electrical fire has caused major property damage, tell the relevant insurer and check the policy’s PDS. The cited guidance warns that an insurer might refuse the claim where the damage was due to illegal electrical work, but it does not set out a guaranteed claim or refusal process.

This is general information, not financial or legal advice. Check the regulator page for the current position and the relevant policy’s PDS before relying on cover.

Sources

• Licensed electrical contractors | WorkSafe.qld.gov.au

FAQ

Is a $5 million public liability limit a guarantee that an electrical fire claim will be paid?

No. It is a minimum insurance requirement for licensed electrical contractors. The Electrical Safety Office warned that an insurer might refuse a claim when major property damage from an electrical fire was due to illegal electrical work.

Is the $50,000 consumer protection component extra to the $5 million?

The cited guidance describes the $50,000 as a component of the public liability insurance requirement. It does not support adding it to the $5 million figure, so check the current regulator guidance and the relevant policy PDS.

Do both the electrician and the contracting business need a licence?

Yes, the roles involve different requirements. The person performing electrical work needs an electrical work licence authorising it, while a business providing electrical work services for others needs an electrical contractor licence.

Can I complain about unlicensed or damaged electrical work?

Yes. The Electrical Safety Office states that complaints about unlicensed or damaged electrical work can be submitted to it.