Electricians Insurance: Everything You Need to Know
Being an electrician is a lucrative job as people depend on them to keep their lights and power on in their homes. But this is not an easy job. Electricians spend their days installing and repairing all kinds of electrical devices in various environments, including buildings, residential homes, shops, and offices.
Electricians need the right coverage that will help them in case of an accident. Here’s everything you need to know about electricians’ insurance.
What Type of Insurance Do Electricians Need?
Whether you are a self-employed contractor or you run a small business, there are several types of insurance for electricians you may need:
General Liability Insurance
General liability insurance is a great option for electricians because it covers them in many situations, from a client breaking an arm after tripping over the toolbox to one of your workers accidentally damaging the client’s property.
Professional Liability Insurance
Professional liability insurance protects the business from legal claims that the general liability policy doesn’t cover. For example, suppose an unsatisfied client decides to sue you after hiring another company to correct your mistakes. In that case, professional liability insurance will cover legal fees, court costs, and compensations if you are found at fault.
Workers’ Compensation Insurance
This type of policy is a requirement in most states. Even if you only have one employee, you could be fined if you don’t have workers’ comp insurance in place. However, even if your state doesn’t require this policy, it is recommended to have it as it protects business owners from the costs of workplace injuries.
Any electrician who owns electrical tools and types of equipment should think about protecting them with equipment insurance. Many tools get lost, stolen, or damaged, so it’s a good idea to cover them instead of buying new tools.
It may come as a surprise to some, but more and more electricians need cyber insurance these days. If you own a website or you transfer money online, you should think about buying this policy because cybercriminals are getting smarter and more present everywhere.
Should an Electrician be Insured?
Electricians should definitely think about some type of coverage because of the nature of their job. Generally, liability insurance for electricians is considered a minimum they should have.
Do Self-Employed Electricians Need Insurance?
Yes, self-employed electricians need insurance as well. Electrician insurance is very important for any type of electrician as it could protect their livelihood in case of an accident.
Is Electricians Insurance Required?
Electricians’ insurance requirements vary from state to state. For example, in California, electricians must obtain a license, and before they apply, they must hold at least four years of experience at a journeyman level to bid on any projects worth $500 or more. Despite different regulations, most states require workers’ compensation insurance.
How Much Does Electricians Insurance Cost?
Typically, the median price of a general liability policy is $540 per year, while the median price of workers’ comp insurance is under $3,275 per year, depending on the state. Furthermore, commercial auto insurance’s median cost per year is around \$1,700, and \$1,060 for professional liability insurance.
The cost of these policies depends on a few factors, including:
- The size of the business
- Gross income
- Number of employees
What Insurance Covers Electricians?
There are several types of policies that cover claims your business caused property damages or bodily injuries to someone else. These policies include general liability insurance, professional liability insurance, workers’ comp insurance, and equipment insurance.
Do Electrical Contractors Need Professional Indemnity Insurance?
Although not legally required, professional indemnity insurance is important to consider because it is designed to protect you and your business in case you are subjected to claims of poor workmanship.
Read also: Contractors Insurance
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