If you work on electrical systems, you need to have electrical contractors insurance. Electricians working at residential locations or commercial job sites have some unique risks that need to be covered. You are typically working with high voltage, active circuits, live wires, and have specialized equipment to run your operation. Electrical business insurance does not need to be complicated on your end! Look to working with an experienced insurance agent to cover your risks, and get back to focusing on what you do best!
What type of coverages do you need to consider?
- Electrician Liability Insurance – This is commonly referred to as commercial general liability for other skilled trades. It will cover your operation for a number of liability issues. Electrician Liability Insurance will cover your business against injuries you cause due to your work. It will provide you with litigation costs and put experts on your side if something bad does happen. This also applies to property damage that is caused by your work.
- Commercial Property Insurance– Covers your buildings, business equipment, business personal property against things like fire, theft, vandalism and tornadoes/wind.
- Business Income Insurance– Covers your business against loss of income if you are unable to operate your business due to loss of a covered location.
- Commercial Auto– Covers vehicles and trailers you own or operate. Covers the liability exposure if you cause an accident and cause an injury or property damage. Also covers the vehicles you own against damages.
- Tools and Equipment– Electricians typically have a wide assortment of specialty tools and equipment. You want to make sure these items are covered on location and off location, and for perils like theft, vandalism, and fire damages.
- Workers Compensation – Coverage for injuries while on the job.
- Electricians Errors and Omissions– Coverage against your work “itself” after it is completed.
What does electrician insurance cost? These insurance plans can be extremely affordable, and no two insurance plans are the same. The cost is determined by the amount of property you need to cover, the amount of employees you have, the amount of vehicles, and other variables that are unique to you.
When considering business insurance for electricians talk to an independent insurance agent who specializes in working with electricians. Hiring an insurance agency who specializes in electrical contractors insurance can save you money, properly protect you, and allow you to do what you do best-be an electrician!
Answers to Frequently Asked Questions
What kind of insurance do electricians need?
The basic insurance coverages that should be considered are a commercial general liability plan, a property insurance plan, a commercial auto plan, a tool and equipment plan, and a commercial umbrella plan. There are so many other endorsements that a licensed insurance agent can offer. It all depends on your individual needs.
What is the average cost of electrician insurance?
This varies. The cheapest you can buy a basic liability insurance plan with $50,000 of tool coverage and a few other basic coverages is around $800 per year, and this would be for a 1-man operation with no vehicle coverage. The more equipment, employees, vehicles, liability limits, and other factors go into the pricing. It is not a one sized fits all answer.
Do electrical contractors need professional indemnity insurance?
In most cases, yes. Errors and Omissions coverage is one we would recommend carrying for an electrician. It can also be a requirement for various subcontractor agreements or contracts.
Do electricians have to carry insurance?
Yes. Can you afford to self-insure a loss if you cause a major claim? What happens if you cause a death due to your work, cause an auto accident, or burn down someone’s property? You need insurance to mitigate your risk.
What is covered under an insurance policy for electricians?
Electrician Insurance Plans should include general liability, commercial auto liability, commercial property, commercial equipment/tools, workers compensation, and a commercial umbrella at a minimum. Other items such as employer’s liability, employee benefits coverage, employment practices liability, business income, extra expense, employee theft, and other items need to be looked at on an individual basis based on individual customer needs.