As an electrician, you know working on electrical systems can be dangerous — and even the most careful electrician can make a mistake on the job. Comprehensive electrician insurance can help you protect yourself and your business against loss, lawsuits, employee injuries and more.
If you work as an electrician, you should have some form of insurance to safeguard your livelihood. Not sure where to begin? Our guide to the multiple types of electrician’s insurance, what you can expect to pay and a few of our favorite providers will help you find the coverage that you need.
General Liability Insurance for Electrical Contractors
Because being an electrician can be a risky occupation, it's important to make sure you're covered if you're a self-employed electrician or an electrical contractor. In addition to electrician liability insurance, you may want to consider the following types of coverage:
- Commercial property insurance
- Workers' compensation
- Commercial or non-owner's car insurance
- Business income insurance
If you're ready to find coverage, compare quotes from the providers below to get started. Or, keep reading to find out more.
Types of Electrician Insurance
There are multiple types of business insurance that electricians might need to protect themselves and their work. Let’s take a look at a few of the most common types of insurance you might need working in the electrical repair and installation industry.
General Liability Insurance
General liability insurance is the most basic type of insurance you’ll need to protect your business. Most general liability insurance includes 2 distinct areas of protection:
- Bodily injury or property damage. This protection compensates anyone who you injure or whose property you damage while working. For example, if you injure a client and that client sues you for the cost of his medical bills, your general liability insurance will help you cover court costs and any court-awarded damages.
- Advertising injuries. If you are charged with libel, slander or copyright infringement by a competing electrical repair or installation company, your general liability insurance will help you fight against the claim.
General liability insurance does not compensate you for damage to your own reputation, your own medical injuries or damage to your own property. This type of coverage will only help you pay off court-ordered damages to other parties and represent yourself in court.
Commercial Property Insurance
Commercial property insurance compensates you for damage done to your office, equipment or the commercial space from which you conduct your business. For example, if 1 of your voltage meters is stolen or damaged while working, your commercial property insurance will help you pay for a new one.
As a general rule, commercial property insurance protects you against damage from fires, vandalism, theft, lightning and more. Most commercial property insurance policies exclude coverage for natural disasters (like flooding or earthquakes) and normal wear-and-tear. You may be able to extend your coverage to include additional perils unique to your area.
Business Owner’s Policy (BOP)
A business owner’s policy (BOP) bundles together your general liability insurance and your commercial property insurance coverages. This can often provide a more convenient and affordable way to get the insurance protections that you need.
Workers’ Compensation Insurance
Workers’ compensation insurance is a unique type of protection that compensates your employees in the event that they are injured on the job. In most states, you must have some form of worker’s compensation insurance if you have at least 1 employee on payroll.
Some of the benefits your workers’ compensation insurance might offer may include:
- Missed wages. If your employees are injured to the point where they can’t work, worker’s compensation will help cover their pay while they recover.
- Medical expenses. If your employee needs medical care after an accident at work, your worker’s compensation may help cover a portion of medical bills not covered by health insurance.
- Vocational rehabilitation. This coverage will help provide ongoing care to your employee if he or she is not able to return to their previous role.
- Death benefits. If your employee passes away while performing his or her duties, your worker’s compensation will help cover things like funeral expenses on behalf of the employee’s family.
Your workers’ compensation insurance only extends to employees you hire. It does not compensate you for your own medical bills or lost wages as the business owner.
Additionally, your worker’s compensation insurance won’t compensate your employees if they’re injured in a preventable manner, such as:
- Injuries or illness stemming from a fight your employee started
- Instances of gross negligence on behalf of the employer or employee
- Injuries that occur when the employee is under the influence of drugs or alcohol
Business Income Insurance
This type of coverage may protect you from financial loss if covered property damage prevents you from operating and making normal income.
Cost of Electrician Insurance
The price or premium you’ll pay for your electrician’s insurance will vary depending on a number of factors, including:
- Years of experience. The more experience you have working as an electrician, the less likely you are to make a costly mistake while working. Electricians with more years of experience in their trade pay less for insurance when compared to newcomers.
- Policy limits. Your insurance will only compensate you up to your coverage limits. For example, if you purchase a general liability insurance policy with limitations up to $1 million, you cannot claim more than $1 million worth of benefits from your insurance provider. If you choose a policy with higher limits, you’ll pay more for coverage.
- Equipment value. If you have more expensive equipment, you’ll pay more for your commercial property insurance. This is because your insurance provider will need to pay more in the event of a claim.
- The number of employees your business has. The more workers you employ, the more likely you are to file a worker’s compensation claim. If you have worker’s compensation insurance, you’ll pay more per month as your business grows.
For a general estimate of what you can expect to pay for your coverage, you can consider the table below.
You may be able to save money by combining your general liability insurance and your commercial property insurance together with a BOP.
Try Simply Business
Simply Business offers a comprehensive suite of business insurance that specializes in making it easy to insure your business.
Whether you’re looking for construction workers' insurance or insurance for your startup, Simply Business helps you find the right coverage at the right price.
Tell Simply Business a little bit about your business and you'll get almost-instantaneous affordable quotes from top insurance providers. You can look into workers’ comp insurance, business owner’s plans, liability insurance, commercial auto and more that will cover everyone on your team, and you can get covered in accordance with state law without overspending.
Building your business is hard enough. Let Simply Business make it easier. Get a quote from Simply Business today.
How Electrician Insurance Works
Electrician insurance isn’t a singular type of insurance policy. Instead it’s a combination of policies that electricians may need to use over the course of their business.
The most common insurance protections that electricians purchase include general liability insurance and commercial property insurance. You may also be legally required to purchase workers’ compensation insurance if you have 1 or more employees who you hire on a full-time or part-time basis.
You can typically save money on your general liability insurance and commercial property insurance by combining both policies together in a single BOP. This affords you the convenience of paying a single premium for your coverage and allows you to access a discount on both policies.
Don't Get Shocked by Financial Losses
The right combination of insurance can help protect your business against damage, lawsuits on-the-job hazards and more. But coverage doesn’t need to be expensive or time-consuming.
Start by comparing a few quotes from competing electrician insurance providers to get a better understanding of what you can expect to pay for your policy. Our list of recommended providers can help you find the right policy today.
Frequently Asked Questions
Why do electricians need insurance?
Because working with electricity can be dangerous, it’s best practice to cover yourself, your business and any worker you’ve employed. This will prevent you from suffering from financial loss in the event you, your worker or your equipment is harmed while on the job.
What are electricians liable for?
If a court finds an electrical contractor or electrician responsible for personal injury or property damage, they or the company they work for may liable for costs and expenses associated with the damage. This can include medical expenses as well as repair and replacement costs.