Electrical contractors and electricians work everywhere from residential homes to large, industrial buildings. While circumstances may change, certain risks remain. What happens if someone is hurt at your location or on a job site? Or what if one of your employees accidentally destroys a client’s property? Electrical Contractor Insurance helps cover those incidents.
Electrical contractor insurance is a combination of several insurance policies designed to protect your business from financial losses caused by the unique risks electricians face, which includes:
Working with high-voltage systems and potentially hazardous materials increases the risk of electrocution, burns, and other injuries to both the electrician and others.
Accidental damage to electrical systems, equipment, or customer property can be costly to repair or replace.
Events like natural disasters or fires could force the business to close temporarily, leading to lost income.
These are just some of the potential risks faced by electrical contractors. Having the right insurance coverage in place can help protect your business from financial ruin in the event of an accident or claim, which is why electrician liability insurance is important to have for electrical contractors.
The specific insurance coverages you need will depend on the size and nature of your business. However, some essential coverages include:
General liability coverage is the foundation of your insurance plan and covers a wide range of accidents and property damage claims. It’s vital for protecting your business if your work causes bodily injury and property damage.
Completed operations liability insurance protects you even after your work is done. Customers might sue if they claim your work was faulty in some way. Bodily injury, property damage, and legal defense costs may be included in your coverage.
Completed operations liability is typically included in a general liability (CGL) policy or a business owner’s policy (BOP). However, you may also choose to purchase a separate, stand-alone policy for additional coverage.
Workers’ Comp Insurance is mandatory in most states and protects your employees if they are injured on the job. It covers medical expenses, lost wages, and rehabilitation costs.
You need insurance that helps protect you while you and your employees travel from job site to job site. Commercial auto insurance protects your business if business-owned vehicles are involved in a car accident that causes bodily harm or property damage. Coverage may vary whether you have one vehicle or a fleet.
For all the tools, inventory, and specialized equipment in your vehicle, inland marine insurance may cover these items if lost, stolen, or damaged while on the road.
In addition to the insurance coverages above, some electricians may need additional coverage and business insurance, such as:
This helps you financially if your business is forced to close temporarily due to a covered event, such as a natural disaster or fire. If you’re not able to open your business, you may suffer from a loss of revenue.
Business interruption insurance provides income replacement and may pay for operating expenses or temporary relocation expenses associated with covered perils.
Hired and non-owned auto insurance covers you if you use a rental vehicle or borrow someone else’s car for business purposes.
This covers damage to your business property, such as your office, tools, and equipment, due to events like fire, theft, or vandalism.
Also known as professional liability insurance, this protects your business if you are accused of professional negligence, such as faulty workmanship or design errors. This can be crucial for protecting against claims of improper installation or electrical system malfunctions.
EPLI protects your business from financial losses and reputational damage due to employee lawsuits alleging discrimination, wrongful termination, harassment, and other employment-related issues such as retaliation, wage and hour violations, etc.
Several factors can affect electrical contractor insurance costs. The cost of your policy may vary depending on your location, the size of your operations, how many people you have on staff, and how much your business makes.
Here are some of the key factors that can influence the cost of premiums:
The more employees you have, the higher the cost of workers’ compensation insurance.
The types and amounts of coverage you choose will impact the premium. Higher coverage limits generally lead to higher costs.
A clean claims history with no previous accidents or lawsuits can lead to lower premiums.
Higher revenue generally implies more work and potentially higher risk, leading to increased premiums.
Different electrical services carry varying levels of risk, which can affect the insurance cost. For example, high-voltage work or specialized services may be more expensive to insure.
States with stricter regulations or higher minimum coverage requirements may have higher insurance costs.
Urban areas with higher population density and potentially more complex projects can lead to higher premiums compared to rural areas.
The value of your business property, tools, and equipment can influence the cost of property insurance.
Choosing a higher deductible can lower your premium, but it also means you’ll pay more out-of-pocket if you need to file a claim.
Different insurance companies may have different pricing structures and risk assessments, leading to variations in quotes.
Dream Assurance specializes in insurance solutions for small businesses, the self-employed electrician, and electrical contractors.. Our team of insurance agents provides access to tailored policies and competitive rates. We work with over 30 carriers to secure the best insurance coverage in commercial insurance.
For personalized guidance that addresses your specific needs and requirements, get in touch with our insurance experts today. Request an instant quote.
With adequate coverage, your business ventures are more than transactions; they are avenues for growth and success. Our team is ready to provide ongoing support to address any concerns about your policy.
9200 Indian Creek Parkway, Suite 100, Overland Park, KS, 66210
✉ Email Us
Our team has the skills, experience, and readiness to help our customers.
We value getting to know our customers and helping them make their insurance dreams a reality.
We love to learn more to help our customers make the insurance process easier.
Experience the Value of
an Independent Agency