An effective way to prevent electrical accidents in the workplace is to employ safety measures that minimize the risk of electric shock. The correct option from the provided choices is: Using insulated tools and wearing rubber gloves. Here are the reasons why this is the safest method:

• Insulated Tools: These tools are designed to protect users from electric shocks by providing a non-conductive barrier between the user and the electrical source.
• Rubber Gloves: Wearing rubber gloves adds an additional layer of insulation, as rubber does not conduct electricity, which further reduces the risk of electrical shock while handling electrical equipment.

In contrast, the other options presented significantly increase the risk of electrical accidents:

• Working on live wires with bare hands: This is extremely dangerous as it directly exposes an individual to live electrical currents.
• Using water to cool overheated electrical equipment: Water is a conductor of electricity, and using it around electrical equipment can lead to severe electric shocks.
• Ignoring minor electrical faults: Neglecting these can lead to larger, potentially hazardous problems, as faults can escalate into more dangerous situations.

Therefore, using insulated tools and wearing rubber gloves is the recommended approach to ensure safety in environments where electrical hazards are present.