Electrical Supply Store Insurance

How to Find the Best Electrical Supply Store Insurance

(You may be shocked to see just how easy it all is)

Electrical Supply Store Insurance

If you operate an electrical supply store, having an insurance policy that will cover you against the many risks that you face is key.  Electrical supply stores are highly susceptible to many risks due to the many different exposures involved with the business’ activities, like employee injuries, on-the-job auto accidents, damage to clients' property, and more. 

An independent insurance agent can make sure you have the proper coverage for your property, products, and yourself. They're local experts who offer unbiased advice and help you compare multiple policies simultaneously, ultimately finding the perfect blend of coverage and cost to leave you with total peace of mind.

Common Risks for Electrical Supply Shops

Insurance policies are designed to protect your electrical supply business against the many risk factors that occur as you conduct business. These policies serve as a buffer against lawsuits and losses which can potentially result in significant financial loss and/or bankruptcy. 

Here are just a few risks and pitfalls you should be protected against while running your business:

  • Damaged business property and equipment
  • Lost profits due to business interruption 
  • Legal claims filed against your electrical supply store for damage
  • Injured workers, staff, customers, and other third parties

There are, however, a few instances where your electrical supply store may not need an insurance policy. These rare situations include:

  • You own the property where your electrical supply store operates
  • You have fewer employees than the state's requirements for workers' compensation regulations, or the business is based in Texas where this program is optional
  • You self-insure

Speaking with an independent insurance agent can give you an accurate assessment of your electrical supply stores potential risks and vulnerabilities. For example, you may be unaware of how often electrical supply stores are involved in fires, or how commonly sold items have been linked to causing cancer for those with prolonged exposure.

What Types of Insurance Are Available for My Electrical Supply Store?

The following are the different types of insurance coverage that can protect your electrical supply store:

Commercial General Liability

General liability insurance will cover your electrical supply store against property damage or physical injury claims. Under this insurance, most policies will provide coverage for:

  • Premises liability: This protects your business from damage or injuries caused to a customer or third party by your employees.
  • Products liability: This protects against faulty and defective products that cause injury or illness to customers and employees.
  • Completed operations: This covers any damage or injuries resulting from electrical services you offered to third parties.

Examples of commercial general liability coverage include:

  • A customer slips and falls on your stairs.
  • A competitor accuses your ad campaigns of slandering their business interests.
  • Products you currently sell have been determined to result in serious injury or illness.

Workers' Compensation Insurance

Workers’ compensation insurance, or workers' comp for short, covers claims resulting from medical and lost wage costs when an employee suffers a work-related injury or illness. In every state in the US except Texas, workers' comp is mandatory for any business to operate. 

When a claim is filed through workers' comp, the workers' comp policy will compensate all of the medical costs and lost income until the employee is fit to work again, up to the policy limits. Workers who file a workers' comp claim also forfeit their ability to sue an employer. This can be an invaluable coverage to have for your electrical supply store, especially if you have installers or independent contractors working on your behalf. 

Examples of workers' comp coverage include:

  • A worker accidentally electrocutes themselves while installing equipment for a client.
  • A worker develops carpal tunnel syndrome and has had a physician recommend surgery to fix the problem.  

Business Property Coverage

Considering that electrical supplies are susceptible to risks due to improper wiring, electrical malfunctions and overheating, having business property coverage ensures that the premises can be repaired or replaced should a covered event occur. This also includes  storms and some other natural disasters. Most rental contracts require this type of coverage to mitigate losses for renters.

Examples of business property coverage include:

  • Your lighting equipment sparks a fire and ruins the roof of your rented space.
  • A windstorm damages your storefront’s windows and cash registers. 

Professional Liability Coverage

Also known as errors and omissions (E&O) insurance, this electrical supply store insurance coverage prevents damage in the event that a third party suffers due to your negligence or improper advice. 

Examples of professional liability coverage include:

  • A repairman accidentally installs a faulty switch.
  • A battery is mismatched, destroying a customer’s sound system.

Commercial Automobile Insurance

If you are using a vehicle for your business, then you need electrical supply store insurance coverage for the car and those who drive it. This means that you’ll be purchasing coverage that includes liability, collision and comprehensive, medical payment coverages, and more. Also, commercial auto insurance covers theft, vandalism, and property damage depending on the type of policy you purchase.

Examples of commercial automobile insurance coverage include:

  • A delivery person collides into a parked car.
  • Your inventory is damaged when your business vehicle is involved in a hit-and-run.

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How Much Does It Cost to Insure an Electrical Supply Store?

The average range of annual premiums to insure an electrical supply store is around $1,200. However, this doesn’t take into account several risk factors related to electrical supply stores. 

Risk Factors for Higher Insurance Premiums

Size of Premises  Smaller, less-trafficked spaces are cheaper to insure.
Condition of the Property Newer properties tend to be built with safety measures installed. Older buildings, however, require retrofits to be brought up to code.
Business Hazards  Electrical supply stores contain hazardous materials and potentially dangerous equipment. This includes batteries, sharp wiring, adhesives, solvents, and more.
Payroll Size  The larger the staff, the more premiums will increase to reimburse injured/ill staff for lost wages.
Claims History  More claims equal higher premiums, as your electrical supply store shows higher potential for filing claims in the future. 
Employment Status of Employees  Full-time employees require more insurance, while independent contractors may be required to be insured depending on state guidelines.
Severity Potential  Depending on the nature of the materials and operation of your electrical supply store, you may be exposed to conditions that are more prone to injure individuals and/or property.

To learn how to minimize these risk factors, speak with an independent insurance agent today. Independent insurance agents are able to assess your situation and offer solutions that can lower premiums and qualify you for discounts from insurers. For example, an independent insurance agent can recommend a comprehensive sprinkler system that pays for itself through reduced insurance premiums. Or they may recommend fencing and security cameras to prevent exposure to internal and external theft.

How to Find the Best Insurance for Your Electrical Supply Store

Insurance policies can be complex, and searching through options can be confusing, time-consuming, and frustrating. An independent insurance agent's role is to simplify the process.

When it comes time to purchase insurance, they’ll break down all the jargon and explain the nitty-gritty so you understand exactly what you're getting.

And should you need to file a claim, you’re not alone. Your agent will be right there to help guide you through every last step and get your business back to where it all was. How great is that?

Why Online Quotes Aren’t Always the Best Way to Shop

Getting your insurance quotes online can be tempting. Sure, it’s fast and easy, but are the quotes you are getting actually accurate? And are you getting quotes for all the different types of coverage your business needs?

Online quotes cannot give you the whole picture. They often omit important coverage, which may result in you being unable to get compensation if something disastrous happens. And they can leave out cost-saving opportunities such as discounts and bundling opportunities that an independent agent can help you take advantage of. 

Instead of getting an online quote, find an independent insurance agent near you, and schedule a one-on-one consultation to discuss your options for the best coverage for your electrical supply store. 


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Our independent agents shop around to find you the best coverage.

Benefits of an Independent Insurance Agent

Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. Find an independent insurance agent in your community here.

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TrustedChoice.com Article | Reviewed by Paul Martin

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