On the job site, a lot may go wrong, regardless of whether you’re hired to design an electrical system for a new structure or solve an electrical issue in an older home. For instance, poor wiring may cause property damage or an injury to one of your staff members while they are on the job. You therefore require electrical contractor insurance.
What is Electrical Contractor Insurance?
Electrical contractor insurance is a policy that includes multiple small business insurance types that protect an electrical company against various issues such as lawsuits, damages, and claim costs. Your choice of coverage depends on the particular requirements of your company.
Electrical contractor insurance is another name for electrician insurance. Consider it a type of insurance for small businesses that you may customize to fit the unique requirements and hazards of your electrician company.
What does Electrician Insurance cover?
Electrical insurance policies include multiple small business insurance types to protect a company from various issues like lawsuits, damages, and claim costs. Your choice of coverage depends on the particular requirements of your company.
Three key coverage types are combined into a policy known as a business owner policy (BOP). Buying a BOP is typically less expensive than buying each type separately. The categories of coverage and their contents are as follows:
#1. Business liability insurance
It includes accidental bodily harm and property damage to other people (but not to your employees). For instance, your liability insurance may cover the cost of medical expenses, court orders, settlements, and legal defense if defective wiring starts a fire that results in both property damage and casualties.
#2. Commercial property insurance
This protects the location of your company and its assets in the event that a situation like a fire damages them. Therefore, all owned and leased equipment, such as computers, office furniture, tools, inventories, supplies, company records, and priceless documents, is covered by commercial property insurance.
#3. Business interruption insurance
If a situation covered by your policy forces you to temporarily close, this coverage replaces lost income. For instance, theft, wind damage, money lost from damaged goods, missed income, and other costs, such as temporarily relocating, are all covered by business interruption insurance. Another name for this coverage is “business income insurance.”
How do I get a quote for electrical business insurance?
Contact the insurance company via mail or phone to get a quick quote. The insurance company will ask you a few standard questions on the workings of your company in order to provide a personalized insurance estimate.
Note that you can modify the package restrictions to suit your needs and proceed with the purchase if you like what you see.
After payment, your insurance will start right away, and you’ll get access to your certificate of insurance. You can also file claims, add more insureds, and pay premiums using the self-service features.
Note that this procedure allows for the purchase of insurance in a couple of minutes.
What are Electrical Contractor Insurance insurance requirements?
#1. Additional Insured Endorsements
You will probably need to add the project owner or your general contractor as an additional insured on your insurance if you are an electrical contractor working on commercial projects or for a general contractor.
This implies that your coverage will defend you and the general contractor in the event that your activities result in a lawsuit for either party.
#2. Waiver of Subrogation Endorsements
Even in cases where there are other parties at fault, your insurance provider will often handle a liability claim. Subrogation is the procedure used if it is eventually found that the claim was caused by another party. At this point, your insurance provider will get paid a portion of the money it expended on settling a claim against the at-fault party or their policy.
For example, if you install a faulty appliance that starts a fire, your insurance company will most likely pay for fire damage resulting from the installation. Afterward, your insurance will attempt to recoup the costs incurred in settling the claim from the manufacturer, who was ultimately responsible for the occurrence due to producing a defective electrical panel.
Even if a listed party was careless in triggering the claim, a waiver of subrogation keeps your insurance company from being able to collect money from that named party.
#3. Additional Liability Limits
The greater the scope of the tasks you work on, the more limitations you must endure. Although the following policies all have a $1 million cap, many projects need between $2 and $20 million.
An excess liability (or umbrella) insurance policy can help with this. You can raise your restrictions as much as necessary to meet the requirements of your project.
Electrical Contractor Insurance Cost
The following are the best business insurance plans for electricians and their average monthly cost:
- General liability insurance: $57 per month
- Business owner’s policy (BOP): $78 per month
- Workers’ compensation: $217 per month
- Commercial auto insurance: $140 per month
- Contractor’s tools and equipment: $41 per month
- Professional liability insurance: $74 per month
- Commercial umbrella insurance: $65 per month
- Surety bonds: $4 per month
Note that this data comes from the average premium price for policies held by electricians who submit quote requests to Insureon.
Best Electrical Contractor Insurance
#1. Insureon
Because they represent several insurance carriers, they provide the greatest coverage for small electrical enterprises. Policies are offered in all 50 states and offer a broad variety of coverage.
Furthermore, BOPs, professional liability, general liability, workers’ compensation, business personal property, commercial auto, builder’s risk, and equipment and tool insurance are a few of the coverage categories that Insureon offers. Additional options include data breach insurance, electronic data liability coverage, and business renter’s insurance.
#2. NEXT
Next is an excellent source for electricians seeking a BOP: insurance. In the event that you require several policies, the organization also provides bundling savings.
Next offers a wide range of standard business insurance policies in addition to BOPs, including coverage for equipment and tools, workers’ compensation, inland marine, cyber liability, professional liability, and workers’ compensation.
Through the next website, you can purchase coverage and obtain a BOP quote. Additionally, you can receive certificates of insurance (COIs), submit claims, and pay your premiums by using the free iOS or Android mobile app. By combining two or more NEXT commercial insurances, you can also save up to 10%.
#3. Hartford
Consider purchasing insurance from The Hartford, which has large revenue and policy limits, if you’re growing your electrical business.
Advantages
- Outstanding financial stability
- High revenue thresholds
- High limits on coverage
Disadvantages:
- Judged by J.D. Power to be below average
- Not able to get insurance online
#4. Farmers
Farmers can be a wonderful option if you’re searching for all-inclusive insurance coverage for your electrical business.
Additionally, BOPs, general liability insurance, workers’ compensation, business personal property insurance, commercial vehicle insurance, builder’s risk insurance, and coverage for tools and equipment are just a few of the insurance products that Farmers offers to electricians.
#5. Nationwide
In some areas, Nationwide provides electricians with a good range of policy alternatives, such as builders’ risk insurance, accounts receivable insurance, general liability insurance, workers’ compensation, business personal property insurance, and equipment and tool insurance.Â
Who Needs Electrician Insurance?
Because working with live wires, active circuits, and specialized equipment presents certain dangers, electrician insurance is required. It benefits electrical contractors that handle jobs like:
- General electrical (including basic repairs or installations)
- Lighting
- High voltage
- Low voltage
- Fiber optic
- Electrical control installation
What does Electrical Contractor Insurance include?
General liability insurance, often known as electrician liability insurance, assists in paying claims made against your company for personal harm or property damage to another person’s possessions. Insurance for commercial property helps safeguard the tools you use as an electrician as well as any buildings you own or rent.
What Insurance do I need as an Electrician?
For electricians, purchasing business insurance is a wise decision. Commercial auto insurance, workers’ compensation, and a business owner’s policy (BOP) could be adequate for small businesses with a small workforce.
What is contractor liability insurance coverage?
Contractors’ professional liability insurance offers protection against errors and mistakes made on the job, as well as other losses during a building project, for both contractors and outside hires, such as architects, designers, and engineers.
What electrical work can be done without a license in Texas?
Texas does not require an electrician’s license for anyone doing electrical work on buildings, structures, or equipment used in agriculture, as specified by Texas Water Code Sec. 11.002.
How to Choose the Best Electrical Contractor Insurance?
You should always do your homework before making a purchase. Seek recommendations, read reviews, and look into complaints before selecting an insurance company.
To ascertain whether an insurance company is the best fit for you:
- Find out if they have prior insurance experience as an electrical contractor.
- Examine the insurance firms affiliated with the provider for stability.
- Compare benefits and prices by shopping around.
An experienced insurance agent will assist you in determining the type of insurance policies and coverage amounts required for electrical contractors in order to safeguard your business.
Is Electrical Contractor Insurance mandatory?
A general liability insurance coverage for electrical contractors ought to be carried by every electrician. This is a general rule that applies whether you work for a major firm or alone. This insurance covers injuries or property damage to third parties other than employees.
Do I need Electrical Contractor Insurance?
In order to protect yourself, it is crucial to have insurance for electrical contractors, whether it be for bodily harm or property damage sustained while working.
Pressure Washing Insurance: Coverage, Cost & Best Options
Self-employed Business Insurance: Cost, Types & Coverage
Subcontractors Insurance: Types & Why You Need One
References:
