Working as an electrical contractor
is a satisfying job but it is also a dangerous occupation. You are dealing with
live wires, costly equipment and at times on a customer’s property. A single
error, or an accident that you have no control over, might result in expensive
damages or litigations. That’s why having general liability insurance for
electrical contractors isn’t just an option, it’s a necessity.
We will discuss all the electrical
contractors should learn about liability insurance, what it is, why it is
needed, how much it costs and how to get the appropriate policy in this guide.
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The reasons why Electrical
Contractors should be insured with General Liability insurance.
You already know the dangers of the
job, here, and you are an electrician, or you happen to own an electrical
contracting business:
• Damage
of property (cutting into walls, destroying equipment, breaking wiring) by
accident.
• Client, tenant or bystander injuries.
• Fire
hazards that occur during a repair or installation.
• Negligence
or errors sued.
In the absence of the general
liability insurance, you would be liable to pay the legal suits or medical
expenses or even repair expenses out of pocket. The cost may very well run in
the thousands--or even millions-of dollars.
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What General Liability Insurance
Covers among Electrical Contractors?
When you buy general liability
insurance for electrical contractors, here’s what’s typically included:
• Bodily
Injury Coverage - In case a person is injured on your place of work (a client
falls into your equipment) insurance covers the hospital bills and court
expenses.
• Property
Damage Coverage -In case you inadvertently damage the property of a client in
the course of his/her work, the policy will reimburse the repair or replacement.
Legal Defense Costs- This is used to
cover the attorney fees, court session cost, and settlement, in case someone
sues your business.
• Personal and Advertisement Injury
- Covers lawsuits on slander, libel or copyright infringement in your business
advertisement.
🧻Electricians
may also be covered under some companies as add-ons, i.e. tools and equipment, worker’s
compensation or even errors and omissions (E&O) insurance.
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Real-Life Example
Suppose you are putting in new
wiring in an office building in New Jersey. In the course of the work a little
electrical fire appears and destroys the property of the client. You would have
to pay the repairs yourself and may even face a lawsuit without insurance. In
the case of general liability, the insurance company will provide compensation
to cover the damages and legal defense.
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Who Needs This Coverage?
It is not only large electrical
companies which are under general liability insurance. It’s equally important
for:
• Independent
electricians
Subcontractors of bigger
construction companies.
• Repair
and maintenance of electrical suppliers.
In essence, whenever you deal with
clients or their assets you ought to be covered in terms of liability.
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How Much Does General Liability
Insurance for Electrical Contractors Cost?
Insurance is dependent on a number
of factors:
• Business
size- A contractor working alone is likely to pay less compared to a firm
employing a number of employees.
• Location
-States such as California or New York might have the most premiums because the
regulations are stiffer.
Services provided- High voltage or
industrial electrical work is not as safe as residential work.
• Coverage
limits- Limits with higher cover are more expensive but offer a better
coverage.
Electrical contractors can pay
between $600 to 1200 annually on average as general liability insurance. There
is a possibility of higher costs by the high-risk contractors.
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Advantages of Liability Insurance to
Electrical Contractors.
1. Financial
Protection - Preclude litigation or loss out of pocket.
2. Client
Trust- The majority of clients would want to employ insured contractors. Others
can even demand to be shown insurance.
3. Legal
Compliance- Liability insurance is required in certain states to licensed
contractors.
4. Peace
of mind- Just concentrate on what you are doing without being afraid of
accidents that could happen.
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How to Get the Right Policy?
Getting general liability insurance
for electrical contractors is simple if you follow these steps:
1. Evaluate
your risks -Residential or industrial work will have an influence on your
policy.
2. Ask
different quotes- Compare insurers until you come up with the best cover and
price.
3. Check
client prerequisites - There are coverage minimums which are needed in certain
projects.
4. Add
insurance - Add workers comp, tools coverage or commercial auto.
5. Get
a Certificate of Insurance (COI) - It shows that you are insured and is
commonly needed before you can get to work.
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The Top-rated Insurance Companies in
Electrical Contracting.
Contractors are covered by some
insurers that are more than popular:
• The
Hartford -Tailored small business coverage.
• Nationwide-
Good as a contractor and tradespeople.
• Hiscox-
Economical solutions to individual electricians.
• Next Insurance-
Contractor-friendly, easy online application.
• Progressive
Commercial -Provides liability and business auto insurance.
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Final Thoughts
Electrical jobs are also dangerous
and a single error is enough to cost someone a fortune. That’s why having
general liability insurance for electrical contractors is so important. It
shields you off law suits, property damage claims and other unforeseen
accidents, which would otherwise close your business.
On a comparatively low price, you
receive peace of mind, customer confidence and securing your living. Liability
insurance is one of the most intelligent investments you can make whether you
are as an independent electrician or a bigger contracting business.
Don’t wait then--compare quotes now
and see you are covered.
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