If you are an electrical contractor and you believe the chance of you needing insurance in the future is slim, it’s time to do some rethinking. You might be an expert in your field but that doesn’t eliminate the risk 100%. Even a tiny mishap and things can explode – literally.
Not many fully understand just how expensive legal claims can be, and when your reputation as a professional is at stake, just getting sued can cost you even more. But what kind of insurance do commercial electrical contractors in Cheyenne, Wyoming need? Here, we share a quick guide with you:
What Types of Insurance Does an Electrician Need?
Whether you’re a one-man electrical business or you run a team of pro electricians in your small business, you are going to find these policies essential:
General Liability Insurance for Electrical Contractors
Whether customers visit you in your place of business or you work on-site for your clients, you are going to need general liability insurance. Why? It’s simply because, no matter how careful one is, accidents can still happen.
Just think about it. What if your client fails to notice your toolbox on the floor and trips over it? What if they require hospitalization because of it? Or what if one of your electricians talks about a client negatively and that client sues you?
In such cases, you’re going to need money to cover the costs and the damages, should the case go to court and you come out at fault. Having general liability insurance can protect you from the expenses of claims for:
- Injury to others
- Property damage
- Personal injury (also covers libel or slander)
Additionally, general liability insurance can cover medical bills, replacement costs, compensation, and legal fees, whether or not there are grounds for the case.
Professional Liability Insurance for Electricians
If you charge clients for your services, you need professional liability insurance (also called errors and omissions). This type of insurance protects your business from costs associated with claims for faulty workmanship, which are not covered by general liability policies.
For instance, you just installed a new lighting system for a commercial building. After a few months, you get a complaint that the lights aren’t working as they should and even after a few attempts, the client is still not satisfied and decides to file a lawsuit. Now you’re looking at expensive legal fees, compensation, and court costs. Even if there are zero grounds for a claim, you can still be sued, and if that happens, you’re going to be grateful you have professional liability insurance.
Workers’ Compensation Insurance
This is a requirement in most states. It doesn’t matter if you’re employing only one person – as long as you have an employee, you’ll have to check your state’s requirements to ensure you comply. Otherwise, you can be facing severe penalties.
Whether or not it’s required by your state, it’s a good policy to have as it protects you from the possible expenses of workplace injuries. If an employee of yours gets injured, it could hurt you as a small business owner. If one of your employees requires medical treatment, workers’ compensation insurance will cover all your expenses, no matter who’s at fault for the accident.
Other Nice to Have Types of Insurance
Apart from the essentials, there are other types of insurance electrical contractors should consider getting:
- Equipment insurance
- Cyber insurance
- Business personal property insurance
It is essential for commercial electrical contractors in Cheyenne, Wyoming to get the right insurance in order to protect themselves from liability and financial loss. Insurance is important for any business, and electrical contractors are no exception. Proper insurance can protect electrical contractors from expensive liabilities, such as damage to property or injury to workers. It can also provide financial assistance in the event of a lawsuit or financial loss due to unforeseen circumstances. Insurance for electrical contractors should be tailored to meet their specific needs and should be regularly reviewed and updated to ensure adequate coverage.
Pascal Burke Insurance Brokerage Inc. offers various insurance products suited for commercial electrical contractors in Cheyenne, Wyoming. Contact our team today to learn more about our insurance products!