Insurance for Electricians
We understand the unique risks you face as an electrical contractor. Ensure you’re protected with customized coverages, expert services, and safety resources from Insurance Strategies.
Standard Coverages for Your Business:
Business Liability. Covers legal liability associated with your business’ operations, including bodily harm to other people or damage to their property
Commercial Automobile. This covers your cars, vans, and trucks you use for business purposes, such as transporting materials to a job site. Your personal car insurance policy won’t cover business uses of a vehicle, so commercial auto insurance is usually a necessity.
Here are some examples of business use:
• Your vehicle is solely used for your electrician business
• You conduct a business service in your vehicle
• You haul electrical equipment and tools in your vehicle
• The vehicle is owned by your company
• Your employees drive your vehicle
• You transport goods or people in your car for work purposes
Workers’ Compensation. In most states, you’re required to have workers compensation insurance, even if you have just one employee. Workers comp insurance covers medical care, lost wages and disability benefits if your employees get injured or ill while performing job-related duties.
Umbrella. This adds an extra layer of protection above your business liability insurance policy limits. For example, if you get sued for $1.3 million but only have $500,000 in business liability coverage, commercial umbrella insurance may cover the $800,000 shortfall.
Key Coverages for Electricians
In addition to the standard policy coverages, here are important coverages to consider as an electrician:
Contractor’s Equipment. Provides protection for owned, leased, rented, or loaned equipment used to get the job done on the job site, in storage, or while in transit. This covers your tools and equipment if they’re lost, stolen or damaged. For example, someone steals your tools from a work site. This coverage may have certain limits.
Equipment Breakdown Insurance. This covers the cost to repair or replace your equipment if it unexpectedly breaks down. It also covers the time and labor to repair and replace your equipment. It doesn’t protect against normal wear and tear of equipment.
Employees’ Tools. Provides protection against loss or damage for tools owned by your employees
Installation Floater. This covers valuable equipment and materials—like copper wiring, electrical boxes and galvanized pipes—while they’re awaiting installation, in transit or being installed at the job site.
Contractor’s Errors and Omissions. If a client accuses you of not doing the job properly, this covers you whether the claim is true or not. For example, a client claims you did a poor job of wiring their home, errors and omissions insurance covers legal costs, court judgments and settlements. This coverage is also known as professional liability insurance.
Ways to Save on Electricians Insurance
Here are strategies to save on your electricians insurance:
- Shop around. Not all insurers price their policies the same. The best way to save is to compare quotes from multiple small business insurance companies.
- Bundle business insurance. Buying a BOP that includes business liability insurance, commercial property insurance and business interruption insurance is usually a good way to save.
- Join a trade or industry association. You may be able to save on your workers comp rate by getting a group rate. For instance, you may be eligible for a discounted rate if you join a trade association with at least 300 members with others that share the same risks as your business.
- Implement a safety program. You may be eligible for savings if you implement a safety program. Make sure you document all training sessions and that your insurer knows about the program.
- Classify workers correctly. Have detailed, accurate job descriptions for your employees and make sure they do not perform duties outside of their classification. This can help you save on workers comp insurance. An insurance agent who is familiar with workers comp can help you select the right classifications.
- Increase your commercial car insurance deductible. The insurance deductible is the amount deducted from an insurance claims check. Generally, the higher your deductible, the less you’ll pay for insurance. That’s because your insurer will pay less if you have to make a claim. Make sure you can cover a higher deductible amount.
- Pay your annual premium up front. You can often get a discount if you pay your annual premium up front rather than monthly.