NYC Insurance Blog

What Insurance Does an Electrical Contractor Need?

Electrical contractors deal with unique risks and insurance requirements when offering their services. As a professional electrician, you must adhere to licensing and customer requirements and protect yourself against lawsuits and financial losses. However, coverage types can vary depending on factors like the specific needs of your electrical business.

Electricians encounter numerous potential exposures at job sites. Here are some of the risk’s electricians are exposed to:

• Injuries – their employees or other people might get injured at the job site.
• Property damage can occur during or after the completion of the project.
• Equipment breakdown or theft could cause delays or heavy financial losses if the equipment were not insured.
• Auto accidents – vehicles used by electricians are prone to accidents that can result in bodily injury, property damage, or even death.

What Insurance Coverage do Electrical Contractors Need?

Whether you are an employed subcontractor, electrical subcontractor, or run a small electrical business, consider purchasing the following policies: 
Get a Free Quote Today on Business Insurance for your Electrical Contracting Company.

General Liability Insurance

This policy is crucial if you work for clients on-site or customers visit you at your workplace (premise). Accidents can happen at any given time, and without general liability insurance, you can suffer a heavy financial loss if you are at fault. A client can trip over your tools and get hurt, or you accidentally knock over the TV or damage property at the client’s house. General liability insurance protects your business from:

• Property damage
• Personal injury, including libel or slander
• Injury to other people (besides you and your employees)

Therefore, your mind can be at ease knowing that the policy will cover repair/replacement costs, medical expenses, legal fees, and compensation, if any. 

Worker’s Compensation

In most states, this policy is mandatory even if you have one employee. Therefore, check the state’s requirements to determine whether it is a requirement or not to avoid repercussions in the future. Workers’ comp protects you from costs related to the workplace. For example, if one of the employees is injured at work and needs medical attention or time off to recover, the policy covers lost wages and medical bills. Furthermore, if the worker goes to court, the policy covers the legal fees regardless of who was at fault. Give us a call today to get a quote on General Liability and Worker's Comp Insurance.

Equipment Insurance

Business personal property insurance is an important policy to protect your tools if they get lost, stolen, or damaged. Imagine losing your equipment, and you cannot replace them on time! You can lose a client, incur hefty replacement costs, and waste time. Instead of taking the risk, invest in equipment insurance.

Cyber Insurance

Cyber insurance is necessary if you own a website, send emails or transfer money online. While advanced technology is making service delivery easier, there are associated risks. You can suffer significant financial losses from cyber events. Consider purchasing cyber insurance to protect your business and clients from cyber-attacks. Besides financial protection, cyber insurance provides technical support to help you deal with an attack and resume normal business operations in no time.

Commercial Auto Insurance

Contractors rely on vans or trucks to transport ferry employees, equipment, and materials to the job site. Commercial auto insurance covers any liability arising from you or your employee using the vehicle to perform business-related activities. The policy addresses all automotive risks in your business, such as being hit by an uninsured car or at-fault accidents. Therefore, the policy covers medical expenses and property damage.

Remember, personal car insurance cannot provide coverage if you use the car for business purposes. It is crucial to purchase a commercial auto policy if:

• Your employees drive your vehicle
• You transport people, tools, or equipment using the vehicle
• Your company owns the vehicle
• The vehicle is solely used for business purposes only
• You conduct business services in your vehicle 

The electrician insurance costs depend on several factors, for example, the number of employees, location, insurance coverage needs, and prior claims history. Protecting yourself, your business, and your employees should be a priority as a business owner. Do not hurry to purchase an insurance policy without gathering all the necessary information. The above-mentioned policies are crucial, and most electrical contractors have invested in them. However, remember there are other types of policies you can purchase to get more financial coverage.Give us a Call Today to Get a Quote

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