A number of commercial insurers now offer free electrical inspections and thermal imaging to eligible business customers, often bundled in as part of a commercial cover or renewal. On the surface, it looks like a straightforward win: a free safety check, paid for by your insurer, that also happens to reduce their own risk. And in fairness, it often is a genuine benefit.
But it is worth asking a few practical questions before treating an insurer-supplied inspection as the whole picture, particularly for commercial premises where the stakes, and the potential cost of getting it wrong, are considerably higher than a typical residential switchboard check.
What an insurer-provided inspection is actually scoped to do
Insurers commonly offer two different things, and it is worth telling them apart. One is an electrical risk review, often including thermal imaging, used to inform underwriting. The other is a formal AS/NZS 3019 periodic assessment, sometimes still called a periodic verification, which is a recognised safety and condition standard rather than a risk-underwriting exercise.
An inspection commissioned and paid for by your insurer is, understandably, built around their risk exposure. It is there to help them understand and manage the likelihood of a claim, most commonly fire risk from an electrical fault. That is a legitimate and useful purpose, and it is also a narrower purpose than a full, independent safety assessment carried out purely on your behalf as the business owner.
The two overlap significantly. An electrical fault that concerns an insurer's underwriting team is generally also a fault you would want identified and fixed. But scope, and who the report is written for, matters. Exactly what is covered, and how often, varies by insurer, policy, building use, electrical load, and equipment age, so it is worth confirming the specifics with your broker rather than assuming one size fits all.
As an illustration of why this matters: a hypothetical insurer thermal scan might correctly flag a hot busbar connection, since that is squarely within its underwriting-focused scope. It might not extend to checking whether the switchboard's RCDs are outdated or correctly rated, because that sits outside what the insurer's review was designed to assess. Neither report is wrong. They are simply answering different questions.
The alignment of interests worth thinking through
The person carrying out an insurer-commissioned inspection is engaged, and paid, by the insurer. That does not necessarily mean anything is wrong with the inspection. It does mean it is fair to ask whose risk the report is primarily designed to manage, and whether that is sufficient for your own purposes as the business owner.
A few practical questions worth raising with your broker before you rely solely on a free inspection:
- What exactly is this inspection scoped to check, and what is explicitly excluded?
- Who receives the report, and does a copy come to us as the property owner?
- Does the insurer require any remedial work identified in the report to maintain cover?
There is also a genuinely open question worth raising directly with your broker or legal adviser: if an insurer-commissioned inspection misses a defect, and that defect later causes a fire or an insurance claim dispute, where does responsibility for that oversight actually sit? We are not lawyers, and this is not a question we can answer for you. It is, however, worth having answered before you treat a free inspection as your only line of defence, rather than raising it after something has gone wrong.
Why independence is worth paying for
An independent electrical inspection has one client: you. There is no underwriting relationship, no renewal decision, and no other party's risk exposure shaping what gets tested or reported. The inspection, and the recommendations that come out of it, exist solely to tell you the true condition of your electrical installation.
A few concrete benefits worth knowing about:
- Portability. An AS/NZS 3019 periodic assessment is yours. It travels with you if you change insurers or shop your cover around, and is commonly accepted by brokers, auditors, and tenants as a consistent safety record, unlike a free review tied to a specific policy.
- Documented limitations. A proper independent report notes what was and was not tested, which matters for budgeting and for your own record-keeping.
- Prioritised remediation. Findings come with a clear sense of what matters most, not just a pass/fail summary.
What we look at, and why thermal imaging matters
Every AS/NZS 3019 Periodic Assessment we carry out follows Section 4 of the standard: a detailed visual inspection with limited testing. Depending on the installation, that typically includes earth continuity, equipotential bonding, and polarity and correct connections, with RCD and leakage testing carried out where a supply interruption can be tolerated.
Thermal imaging is included as standard alongside this, and it is worth being clear that thermal imaging and a periodic assessment are complementary, not the same thing. The scan uses infrared cameras to detect heat anomalies in the switchboard, busbars, cable terminations, and wiring, indicating overloaded circuits, loose connections, or components beginning to fail. The periodic assessment covers the safety and condition testing itself.
- Switchboard — correct labelling, circuit protection, and a thermal scan for hotspots.
- Wiring and conduits — age and condition of the visible cable network.
- Fittings and fixtures — a representative sample of switches and power points.
- Earthing systems — verification of the property's safety earthing.
What you receive
- AS/NZS 3019 Form 1 and Form 2, documenting the assessment and the test results
- Annotated thermal imaging where anomalies are found
- A prioritised list of any remedial recommendations
- A clear record of what was and was not tested
None of this is a reason to decline a free inspection if one is offered. It is a reason to be clear-eyed about what it covers, and what it does not. For many commercial property owners, the sensible approach is to treat an insurer-provided check as one input, and an independent AS/NZS 3019 periodic assessment as the report that genuinely answers to you, particularly where the building houses significant equipment, multiple tenancies, or operations that would be seriously disrupted by an electrical fault or fire.
If you work with a broker, this is also worth sharing with them directly, so they can confirm exactly what your policy requires and whether an independent periodic assessment satisfies it.
Frequently asked questions
Is there anything wrong with accepting a free electrical inspection from an insurer?
Not inherently. It can be a genuinely useful benefit. The point is understanding what it is scoped to assess, who it is primarily reporting to, and whether that is sufficient on its own for a commercial property with significant exposure.
Who is responsible if an insurer-commissioned inspection misses a fault?
This depends on the specific circumstances, the terms of the inspection, and the policy involved, and it is a legal question best directed to your broker or lawyer rather than answered generally. Insurer-commissioned reviews typically produce a summary suited to underwriting, while a periodic assessment produces a formal Form 1 and Form 2 with test results and documented limitations, which can matter for your own compliance and maintenance records. It is worth asking before you rely solely on a free inspection, not after an incident occurs.
Does an independent inspection replace the need for insurer-required checks?
Not necessarily. Some insurers accept an AS/NZS 3019 periodic assessment in place of their own review; others still require their specific inspection. Confirm this directly with your broker.
What does an independent periodic assessment cost compared to a free insurer inspection?
Costs vary by property size and complexity. See our What Will It Cost page for guidance, or contact us directly for a quote.
How often should commercial properties get an independent electrical check done?
This varies by site risk, equipment age, and prior findings. Many insurers and industry guidance point to intervals of one to three years, with annual checks generally recommended for higher-risk or high-load sites.
