It's probably not shocking that electricians face many hazards on the job, from the risk of potentially electrocuting themselves or others, to the possibility of damaging the property they're working on, to even potentially causing a fire due to an incomplete job. Electrical work is not for the faint of heart and the consequences of being uninsured could be disastrous.
That's why it's so important to know about electrical contractor insurance. Our independent insurance agents are here to eliminate the hassle of searching on your own by walking you through a handpicked selection of top business insurance policies to cover both your business and your employees.
What Is Electrical Contractor Insurance?
Basically, electrical contractor insurance is designed to protect electricians and the company they work for (if not self-employed) from damage due to negligent work and injuries caused/sustained during a day on the job. It can also protect against damage to, or theft of, company property.
Is Electrical Contractor Insurance Mandatory?
In short, it depends on where your business is located. Contracting trades can absolutely make this type of insurance mandatory, and almost without a doubt will do so in major cities and metropolitan areas. Check your local and state laws to find out if it's required where you are.
Also, most states require, at the least, workers' compensation which will cover employees' medical diagnoses, treatments, and income lost if they are unable to work due to on-the-job injuries.
What Are Electrical Contractor Insurance Requirements?
The requirements vary by state. Different states will require that you have a certain amount of trade experience to apply, or that you have at least a required number of employees for specific types of plans.
Why Do I Need Electrical Contractor Insurance?
Well, if you want to protect your business, your employees, and the other people and properties they interact with, this insurance is definitely something you should consider. Electrical contractor insurance will allow you and your business to obtain all the different types of coverage you need in one neat and tidy package.
What Does Electrical Contractor Insurance Cover?
An electrical contractor insurance package protects all the key components of the business and what happens on the job — from your office headquarters, to equipment used, to other people, and your employees working on the job site.
The three main components are:
- Property coverage: Covers your actual office space. There's an option to add coverage for equipment and tools used on the job too.
- General liability: Covers any injuries sustained by third parties on the job site as well as damage to the property by the electrician. It may not pay for actual work performed that may be lost in an incident, however.
- Workers' compensation: If your employees become sick, get injured, or die from a work-related incident, this aspect of the insurance will pay the benefits required in your state.
Optional Add-Ons to Electrical Contractor Insurance
In addition to the main components of electrical contractor insurance coverage, there are some additional types of coverage you may want to consider.
- Installation floater insurance: Covers materials that will become a part of the property if they're lost, damaged, or stolen in transit or before installation.
- Commercial vehicle insurance: Covers damage to company vehicles caused by road accidents, theft, damage, or vandalism.
- Life insurance: Will pay a designated beneficiary in the event of a worker's death on the job, which is a sad, but very real daily risk of electrical work.
How Much Does Electrical Contractor Insurance Cost?
The cost depends on several factors including the size of the business and its location, as well as its gross sales/receipts and payroll. A solo contractor working out in the middle of nowhere in Kansas might only pay a few hundred dollars per year, whereas a giant company in, say, NYC might pay more than a million annually.
It's typically expected, however, to be at least in the low thousands. That's because of the large amount of risk involved in working with electricity itself, and the involvement of other people and property in the process.
What's So Great about an Independent Insurance Agent?
Independent insurance agents have experience in dealing with all kinds of businesses and insurance policies. They excel at matching the most appropriate policy to the business in need. Shopping around for insurance policies can be tricky, confusing, and time-consuming, and an independent insurance agent's role is to simplify the process.
They’re also there to help make sure you get the absolute best deal and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.
Finding and Comparing Electrical Contractor Insurance Quotes
Our agents will review your needs and help you evaluate which electrical contractor insurance policy makes the most sense for you. They'll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They'll hook you up in a comprehensive and affordable way.