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Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for electricians.


This article will discuss the primary insurance coverage for electricians, general liability insurance, as well as additional policies that are appropriate for this industry.

Electricians’ General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.

Common Situations That An Electrician’s General Liability Insurance May Cover

Example 1: You inadvertently start a fire while doing repairs, and it quickly spreads across a client’s living room, destroying furniture and equipment worth thousands of dollars. General liability insurance would most likely cover part of the losses or settlement made by your company.

Example 2: During a repair, a customer’s unsupervised youngster comes into contact with a live wire and sustains serious injuries. If you are determined to be accountable, your company will most likely be compensated for part of the resultant losses or any settlement negotiated between you and the consumer.

Example 3: While fixing some wiring in a customer’s home, you decide to take a lunch break. You inadvertently drop a dark chocolate bar on the floor after eating. The client’s dog sneaks in and consumes the whole thing, getting very sick as a result. If found accountable, your company would most likely have some coverage under a general liability insurance policy for damages incurred or an out-of-court settlement.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

The typical electrician in the United States pays between $500 and $1,500 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Electricians

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all electricians should have are as follows:

Insurance for Professional Liability

If your services are judged poor, your company may be faced with a lawsuit asserting professional negligence. Instead of paying damages out of your company’s revenues, a professional liability coverage might cover a significant portion of whatever you wind up needing to pay.

Insurance for Commercial Property

To complete the work, your electrical company will undoubtedly need the use of costly professional equipment, tools, and gear. You cannot afford to lose these valuables to an unforeseeable event such as a fire or severe weather. Purchase a commercial property coverage to safeguard your company’s assets, such as equipment, tools, machinery, cars, and any owned real estate.

Coverage Options for Some Electricians

In addition to the insurance listed above, your electricians may need other forms of coverage based on particular parts of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Commercial Vehicles

If you drive a car mainly for business purposes, you’ll need to get commercial auto insurance to be protected in the event of an accident on the road.

Insurance for Workers’ Compensation

Most states require you to obtain workers’ compensation insurance if you recruit any part-time or full-time employees. This covers the expenses of injuries sustained by an employee while on the job.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

Look into LLC Insurance if your company is an LLC.