Electrical contractor insurance is vital to any electrical contractor’s business plan. It provides financial protection and peace of mind, ensuring that your business and your employees are covered in an accident or mishap.

Whether you are a small business owner or a large commercial electrical contractor, having the right insurance coverage is essential. In this article, we will cover the basics of electrical contractor insurance, including what coverage is available and how to choose the right provider.

General Liability

General liability insurance is the foundation of any electrical contractor’s insurance policy. This policy covers any bodily injury or property damage that may occur as a result of your work. The coverage typically includes legal fees, medical expenses, and other costs associated with an accident or injury.

Workers’ Compensation

Workers’ compensation insurance is a must for any business that employs workers. This coverage provides financial protection in the event of an on-the-job injury, illness, or death. It covers medical expenses, lost wages, and other costs associated with a workplace injury or illness.

Commercial Auto

Commercial auto insurance is a type of liability insurance that covers vehicles used for business purposes. It covers any property damage or bodily injury caused by an accident involving a business vehicle.

Electrical Contractor License Bond

A license bond is a guarantee for electricians that they will work to the highest standard and comply with their state’s licensing requirements. It is like a form of security, purchased from an insurance provider, that ensures their work is done properly and in line with any applicable regulations. If the electrician fails to uphold their obligations, the bond can be used to cover any losses or damages that may arise.

Common Insurance Requirements For Electricians

Additional Insured Endorsements

Suppose you are a tradesperson who works with electrical systems in commercial settings. In that case, the person or business who owns the project will likely require you to include them as an extra insured party on your insurance policy. If a lawsuit results from your actions, your insurance coverage will protect you and the general contractor or property owner.

Waiver Of Subrogation Endorsements

If you are an electrician, a waiver of subrogation endorsement can offer valuable protection against potential lawsuits. This endorsement prevents your insurance company from seeking compensation from the other party should you become liable for damages.

Additional Liability Limits

Depending on the type of electrical work you do, you may need to purchase additional liability limits to ensure that you are adequately covered. If you are working in a commercial setting, you may need to purchase a commercial liability policy with higher limits than a residential one. It is important to speak to an insurance agent to determine the most appropriate coverage for your business.

The Bottomline

In conclusion, electrical contractor insurance is an important consideration for any electrical contractor. It provides coverage for damages caused to property, workers’ compensation, and legal liabilities. Knowing what is covered under the policy and what is not is the first step to getting the best coverage. With the right insurance policy in place, electrical contractors can have peace of mind that their business is protected from any unexpected financial losses.

Pascal Burke Insurance Brokerage Inc. offers cheap general liability insurance for contractors. We specialize in an array of policies that cover not only general cases but specialty contractors. Get started now.