Insurance for Electricians and Electrical Contractors
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What Insurance Do Electricians and Electrical Contractors Need?
Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused somebody financial loss. PLI covers your legal defense costs, damages and settlements.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
A Fiduciary Bond (or Surety Bond) protects a fiduciary - someone who is granted power over another person’s interests or assets via a will or contract - from being sued for alleged fraud, embezzlement, or dishonest acts.
Frequently Asked Questions
Why do Electricians or Electrical Contractors need insurance?
One wrong installation could lead your business to bankruptcy, should it cause financial or physical harm to your customer and they sue you. Monthly payments for your insurance are better than the need for huge amounts of cash over a short period of time to pay for court costs and legal fees.
What risks do Electrical Contractors face?
Having an electrical contractor business is not without its risks, which include:
- Malfunction of a product supplied to the customer, which can cause destruction of their property. If the customer sues, you’ll be responsible for paying for any court costs, legal fees and settlements related to the claim.
- Illness or injury to employees on the job, in which case you’ll be responsible for medical and rehabilitation costs as well as lost wages.
- Warehouse flooding resulting in the destruction of electronic parts. Restocking inventory will come out of your own pocket.
These are just a few of the many risks that electrical contractors can face.
How much does Electrician Insurance cost?
There are several factors that determine the cost of insurance. Most of the time insurance carriers will need to know the type of business you own, the number of employees you have and the coverage you need. Some can also ask for additional information.
To get the cost of your insurance policy, apply for a free and no-obligation quote online or simply give our customer service agents a call.