Electrical Contractor Insurance

Finding the Best Electrical Contractor Insurance

(Because electricity is crazy and extremely dangerous)

Greg Lewerer | May 21, 2018
picture of an electrical contractor

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. The consequences of being uninsured could be disastrous.

That's why it's so important to know about electrical contractor insurance. Our independent agents are here to eliminate the hassle of searching on your own by walking you through a handpicked selection of top 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 the hazards of a botched job, or injury 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/metropolitan areas. Check in with your local/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 diagnosis, treatment and income lost due to being unable to work.

What are Electrical Contractor Insurance Requirements?

It varies by state - different states will require that you have a certain amount of trade experience to apply, or that you have at least a dictated 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 different types of coverage needed in one neat and tidy package.

What Does Electrical Contractor Insurance Cover?

The 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 jobsite.

The Three Main Components are:

  • Property damage coverage: Covers your actual office space. There's an option to add coverage for equipment/tools used on the job, too.
  • General liability: Covers any injuries sustained by third parties on the jobsite, as well as damage to the property by the electrician - it does not pay for actual work performed that may be lost in an incident.
  • Workers' compensation: If your employee(s) should become sick, injured or die from a work-related incident, this aspect of the insurance will cover the financial ramifications. 

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 tools/equipment in transit between jobs, which could be lost, damaged or stolen.
  • Commercial vehicle insurance: Covers road accidents, theft, damage or vandalism towards company vehicles.
  • 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. So, a solo contractor working out in the middle of nowhere in Kansas might only pay a few hundred per year, whereas a giant company in, say, N.Y.C. might pay more than a million annually. 

It's typically expected, however, to be at least in the low thousands - due to the massive 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 Agent?

Independent 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 agent's role is to simplify the process.

Independent agents are there to 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 supremely wise agents will review your needs and help you evaluate which electrical contractor insurance policy makes the most sense. 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.

Now, who's ready to get their insurance problems solved?