Electrical work is a dangerous trade and can cause accidents and property damage even when you work carefully. Carrying electricians insurance is a way to shield your business and its assets from potential lawsuits. We’ve evaluated the best business insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
Also known as electricians liability insurance, this type of insurance can help cover claims of bodily injury or property damage that may happen as a result of your business’s actions. It will also cover other common risks associated with electrical work.
Who needs electrician insurance?
Any person or business working in the electrical field should consider electrician insurance. Being one of the more dangerous trades, risks of electrocution and electrical fires are higher than usual. Electricians insurance protects the individual or business from the financial burden that lawsuits can bring due to injuries or property damage that may occur.
What insurance do electricians need?
Depending on which region or state you are working in, electricians insurance may or may not be mandatory by local government law. In metropolitan cities, it is almost always required in order to operate at all. Here are a few of the typical types of insurances that electricians should have in order to protect themselves and whoever happens to be affected by unfortunate events.
General liability insurance
To protect your business on the job, a general liability policy can help pay for any third-party claims that arise. Usually, they will fall under the following categories:
Bodily injury: Someone is injured at the job due to you or your employees’ negligence and they decide to file a claim. For example, a client is walking through looking at your work with you and gets electrocuted by touching a live wire that someone forgot to cover or disconnect. The bodily injury component would cover it.
Advertising: Protects against claims that ideas were stolen, slander, invasion of privacy, copyright infringement, and libel. For example, You run an ad campaign that says your work is guaranteed safe, unlike your competitor (Company X). Company X then files a claim for slander due to lost business from your ad campaign. The advertising insurance component would cover it.
Property damage: Something happens (like materials falling on a car or an electrical fire) due to negligence by you or your employees. For example, you are working on the second story of a house running electrical wires. The spool rolls off of the second story and crashes through the client’s windshield. The property damage component would cover it.
Professional indemnity insurance
Sometimes a job is just to give a professional opinion and advise on electrical components of a project without actually doing the work. This insurance protects you from backlash if the advice given is problematic and causes bodily injury or property damage.
Workers compensation insurance
Required in almost every state, this type of insurance is for businesses with multiple employees. It typically covers lost wages and medical fees for injuries and/or illnesses that occur in the workplace.
Commercial auto insurance:
This type of insurance provides coverage for accidents that occur while on the job. They cover medical costs and property damage, along with any other financial loss relating to vandalism, theft, or weather damage.
Light vehicles: Sedans, small trucks, vans, SUVs, and other smaller vehicles.
Heavy vehicles: Equipment trucks, dump trucks, etc.
Trailers: Utility trailers, container trailers, etc.
Contractors tools insurance
If tools are damaged, stolen, or lost, this insurance helps cover the costs necessary to repair or replace them.
Professional liability insurance
Also known as errors and omissions insurance, it helps protect electricians in the event that their work causes bodily injury, property damage, or if a client deems it unsatisfactory.
What are the limits of electrician insurance?
The standard limit for electricians insurance is $1M per occurrence and $2M in aggregate limit. The tier-up in limits for a policy is usually around $2M per occurrence and $4M in aggregate limit.
How much does electrician insurance cost?
There are several factors that affect the cost of business insurance premiums. Factors that can impact your insurance are:
Years of experience: Generally, the more years an electrician is in business, the lower the premium will be in this category. More experience statistically means less claims.
Size of the company: Larger companies with more employees carry a higher risk of a claim being filed than a smaller one.
Policy limits: With higher per occurrence and aggregate limits usually comes an increased insurance premium.
Policy deductibles: If a deductible is smaller, the premium is usually higher due to the payout being larger for the insurance company.
Location: Depending on where the project is, the cost for this category will fluctuate up or down. A location that is statistically lower in theft will have a lower premium than one with a high crime rate.
Electrician insurance can cost between $700-$1200 annually (depending on the above variables).
How to choose the best electrician insurance
Each electrician has a unique situation and way of doing business. The best way to choose a policy is to assess your company’s needs and see what the best options are. Here are some questions you can ask yourself when talking to different providers about your options:
Are they responsive to your questions and concerns? Do they answer in a timely manner?
Do they cover all the normal items in the standard electricians insurance policies? Does this coverage match what you need for your business?
Are they knowledgeable on their products and laws pertaining to insurance? Are you satisfied with their answers? Do they address your concerns?
Are they able to be flexible with the products that are offered? Do they tailor the products to fit your needs?
