If you are a new electrical contractor, you may wonder what electrician insurance is and how it applies to you. Understandably, the risks for people who work as electricians are higher than for those who work a traditional desk job. According to Electrical Contractor magazine, 586 electrical workers died of electrocution over ten years. Therefore, it makes sense to understand exactly what types of electrician insurance coverage you need to work safely. In this article, we’ll cover electrical contractors insurance, why you need it, and how much it could cost you.

What is Electrical Contractors Insurance? 

As mentioned above, working on electrical systems for homes and businesses can be dangerous. Electrical contractors and self-employed electricians deal with risky actions such as:

  • Active circuits
  • Live wires
  • Specialised equipment

Not only is there a risk for electrocution, but defective wiring can cause fires and damage the property an electrician is working on or the tools and equipment they are using. Electrician insurance is essential for electrical contractors to run their business without worrying about any of the above bankrupting them or their business. Some states also require electrical contractors to have specific business insurance to work.

Electrical contractor insurance isn’t just for electricians. According to the North American Industry Classification System (NAICS), many types of contractors fall under the “electrical work” scope. This includes cable contractors, alarm system contractors, airport runway lighting contractors, and solar panel installation contractors, among many others.

Generally, electrical contractors insurance should include the following policies:

  • Commercial property insurance – Helps protect your rented or owned building and the equipment you use as an electrician. This includes things like batteries, wire strippers, amp meters, power tools, and other tools and supplies.
  • General liability – Helps cover claims that your electrician business caused property damage or bodily injury to someone else.
  • Business income insurance – This helps you cover some of the lost income if you can’t operate your electrician business because of covered property damage
  • Workers Compensation – This will help cover any costs for work-related injuries or illnesses your workers receive while working for you. 

What is its Cost? 

Now that you understand what electrician insurance is, you likely want to know how much electrical insurance will cost. While the cost of your electrician insurance will likely depend on several factors, it is essential to consider the investment this type of insurance is. Legal expenses for litigation can cost your business anywhere from $3,000 to $150,000, along with other damages to your business and its reputation. Many insurance companies will bundle different insurance policies to lower your overall premium. However, you can expect to pay anywhere from $500 to $1,500 annually for our electrician insurance. If you are an electrical contractor, you must explore your options with an experienced and knowledgeable insurance services provider.

At Dunham Insurance Services, no matter what type of insurance coverage you need, we take the extra time to ensure that you completely understand your coverage and that it fits your needs perfectly. Our objective is always to reduce our clients’ insurance costs by providing quality business, home, auto/marine, commercial and personal umbrella policies. Contact us today to discuss your electrical insurance coverage needs.