Electrical Contractors Insurance Maryland Policy Information
Electrical Contractors Insurance Maryland. Electrians make the connections that allow electricity to flow and power homes and businesses. From lights to computers and from appliances to televisions, people rely on the services that you provide to make their lives easier and more convenient.
Electrical contractors install, service, maintain and repair electrical wiring, conduits and fixtures both inside and outside of residential and commercial buildings. Inside contractors install electrical wiring used for powering machinery, equipment, and lighting systems. Outside contractors install overhead power lines and underground electrical cables.
Most states require electrical contractors to be licensed. The contractor may provide 24 hour emergency service.
While the services you provide are invaluable, what happens if an accident occurs or if you damage someone's property? You could be held liable for medical expenses, the repair or replacement of damaged property, and even legal action. Electrical contractors insurance Maryland can protect you from severe financial strain and devastation.
Electrical contractors insurance Maryland protects your business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Why Electrician Insurance Is Important
As an MD electrical contractor, your trade is extremely important; however, it's also extremely hazardous. Faulty wires or improper connections can spark fires and cause electrocution. Climbing ladders and working in tight spaces could result in severe injuries. The tools and equipment that you work with are expensive and could be destroyed or stolen. The property that you operate your business out of could be damaged.
Given the inherent risks that are associated with your business, insurance coverage is absolutely vital; in fact, electrical contractors are legally required to carry certain types of policies. Having the right electrical contractors insurance Maryland policies will protect you from financial losses and ensures that you are compliant with the law.
What Type of Insurance Do Electrical Contractors Need?
As an electrician, there are several types of electrical contractors insurance Maryland policies that can protect you, your business, your employees, and your clients. Some of the most important coverages electrical contractors should carry include:
General liability insurance. If a third party sustains an injury or their property is damaged as a result of the services that you provide, professional liability coverage will protect you from the costs that are associated with medical bills and repairing or replacing the damaged property. If a client files a lawsuit against you, this type of policy will help pay for legal defense fees. For instance, if a faulty connection damages appliances, your CGL would help to pay for those damages.
Errors and omissions. This type of policy offers protection for any negligence claims that are filed against you, as well as for claims stating that you failed to perform a service you promised. Errors and omissions insurance provides coverage for negligence (whether true or alleged), legal defense fees, and damages that occur after you completed your service.
Commercial property. If your business out of a physical location, it's a wise idea to carry commercial property insurance. This policy will protect the building your business is located in, as well as the contents within it. If an act of vandalism is committed or your building or property are damaged in a storm, this coverage will help pay for any necessary repairs or replacements.
Workers compensation. If you employ a staff, workers compensation insurance is a must; in fact, in most states it's a legal requirement. This type of coverage will pay for any injuries or illnesses your employees may sustain while they are on the job. For instance, if a worker is connecting wires and is electrocuted, workers comp will help cover the cost of medical care and lost wages. If an employee perishes as a result of an accident, this policy will also pay out death benefits to his or her dependents.
Contractors' equipment coverage. You use expensive tools while you're on the job, and if those tools are damaged, the cost of replacing them can be extensive. Contractors' equipment coverage will protect the tools and equipment you use on job sites.
These are just some of the different types of insurance policies that electricians are required to carry or should seriously consider investing.
How Much Does Electrical Contractors Insurance Maryland Cost?
The cost of coverage depends varies and depends on a variety of factors. The type of business insurance policy, the size of your business, and your work history are just some of the factors that will affect the cost of insurance. However, regardless of how much coverage costs, insurance for electricians is one of the most important investments you can make for your business.
MD Electrical Contractor's Risks & Exposures
Premises liability exposures at the contractor's office are generally limited due to lack of public access. Outdoor storage of materials may create vandalism and attractive nuisance hazards.
Off-site exposures are extensive. Electrical voltage must be turned off at the job site to reduce the risk of electrical burns or electrocution to others entering the area, and turned back on after work stops, all while minimizing any disruption of electrical service to other homes or businesses in the vicinity. Electrical work can be invasive and require work throughout a home or business, resulting in a high potential for property damage.
The area of operation should be restricted by barriers and proper signage to protect the public from slips and falls over tools, power cords, building materials, and scrap. If there is work at heights, falling tools or supplies may cause bodily injury or property damage if dropped from ladders and scaffolding. During construction, other contractors typically depend on electricity for lighting and power to perform their work.
In existing structures, the contractor must take care to control the electrical flow as new lines are installed alongside existing ones. Power fluctuations may damage sensitive equipment. Exterior electrical contractors must notify other utilities to prevent down time to their customers and must prevent surges to their own customers.
Contractors laying underground cables should verify the absence of other utility lines prior to digging to avoid cutting into gas, water or communications cables. Underground laying of cables involves trenching which requires physical barriers to prevent others from falling into open areas.
Completed operations liability exposures can be severe due to improper wiring or grounding. Both power failures and power surges resulting from the contractor's negligence may result in significant bodily injury or property damage. Work for medical facilities, large manufacturers, and alarm system installation can present the potential for catastrophic loss. Warranties, guarantees, and maintenance agreements, in which the contractor promises to keep a system in operation, should be reviewed.
Environmental liability exposures may exist if the electrical contractor is responsible for the disposal of old capacitors and other heavy-duty electrical equipment as these may contain PCB's. Disposal procedures must adhere to all EPA and other regulatory standards. Proper written procedures and documentation of both the transportation and disposal process is important.
Workers compensation exposures vary based on the size and nature of the job. Electrical burns are common; electrocution can occur from the use of high-voltage lines. Injuries can occur from working with hand tools, slipping or falling, back injuries such as hernias, strains and sprains from lifting or pulling cable, and the carelessness of employees of other contractors. Minor injuries may be frequent even when the severity exposure is controlled.
Failure to enforce basic safety procedures, such as power shutoff prior to commencing certain operations, may indicate a morale hazard. Employees must be carefully selected, trained and supervised. When work is done on ladders and scaffolds, employees can be injured from falling, being struck by falling objects, or adverse weather conditions. Laying underground cable may be near power and gas lines. Trench collapse can result in workers being suffocated or buried underground.
Property exposures at the contractor's premises are generally limited to an office and storage for supplies, tools and vehicles. Electrical wiring is not combustible but the insulating sheathing produces a black oily smoke when burnt and can be difficult to extinguish once started. Proper storage with good aisle space is important for preventing fires.
Inland marine exposures include accounts receivable if the contractor offers credit to customers, computers, contractors' equipment and tools, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. Equipment consists mainly of hand tools and ladders unless there is line construction or machinery installation. Line construction may involve the use of cherry pickers and similar equipment for overhead lines, or trenchers and other digging equipment for laying underground cable.
Some may be rented from or loaned to others. Goods in transit can be damaged by collision or overturn. Copper cable and wiring have high resale value and can be target theft items during transit or while located at job sites. Other hazards to tools and equipment and to materials awaiting installation include vandalism and fire.
Crime exposure is primarily from employee dishonesty. Background checks, including criminal history, should be performed on all employees providing services to customers or handling money. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly.
Commercial auto exposure is generally limited to transporting workers, equipment and electrical cables and supplies to and from job sites. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location. Vehicles may have special modifications or built-in equipment such as lifts and hoists. Large cables may be awkward and require special handling and tie-down procedures.
Insurance For Electricians
Business insurance can save you from severe losses that could cause severe financial strain and potentially shut down your business. To learn more about electrical contractors insurance Maryland, speak to a reputable insurance agency that has experience with servicing professionals in your field.
Maryland Economic Data And Business Insurance Regulations
Business owners that have their sights set on Maryland should to take a number of factors into consideration before the set up shop; namely, they need to determine if the state offers favorable for business owners in general, as well as their specific industry. After all, it doesn't matter how top-notch the products and services a business offers may be, if the location isn't favorable for the industry - and businesses, in general - the operation is going to have a hard time thriving.
Below, we examine key factors that indicate whether or not Maryland is favorable for business owners. We also look at some of the must-have types of commercial insurance coverage that are required in the state.
Economic Trends For Maryland Business Owners
A state's unemployment rate is key indicator of whether or not the climate is favorable for business operations. As of May, 2019, the unemployment rate in the Old Line State was 3.8 percent; 0.2 percent higher than the national average. In October of 2022, the rate hit a record low of 3.7 percent, so in less than a year, the unemployment rate has increased by .01 percent; a marginal increase. However, there have been gains in recent years; in 2010, the rate was 7.8 percent; that's a 4.0 percent increase in less than a decade.
The best place to start a business in Maryland is in Baltimore, the state's largest city. Suburbs of the city also offer promising conditions for business owners, such as Ellicott City, Columbia, Fulton, Lutherville, and Elkridge.
The state of Maryland offers a friendly culture for business of all shapes and sizes; but, the industries that are see the most success in the Old Line State include:
- BioHealth and Life Sciences
- Advanced manufacturing
- Information technology
- Aerospace and defense
- Financial services
- Energy (specifically green energy)
- Hospitality and tourism
Commercial Insurance Regulations In MD
The Maryland Insurance Administration regulates insurance in Maryland. Commercial insurance is designed to protect business owners from potential perils; it also protects anyone that interacts with a business, including consumers, vendors, and employees. Having the right type of coverage is not only crucial to avoid serious financial devastation in the even that a catastrophe does occur, but certain types of insurance are mandated, meaning business owners must carry specific forms of coverage.
In the state of Maryland, business owners are required to carry workers' compensation insurance, which offers coverage for on-the-job accidents and illnesses that employees sustain, is also required. Other forms of insurance coverage that business owners may need to invest in depend on the specific industry; for example, companies that distribute or sell alcohol will need liquor liability insurance, and businesses that utilize vehicles for business-related operations should carry commercial auto insurance to protect their drivers and other motorists on the road.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Tank Cleaners
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
A contractor that wants to begin or stay in business, liability coverage must be obtained for the premises or operations, off-site locations and products/completed operations exposures. These coverages may be included as a part of a businessowners policy (BOP) or purchased in a commercial general liability (CGL) policy. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to obtain a particular job.
Physical damage coverage for tools, supplies and equipment, both on and off the contractor's premises, is a concern. Liability exposures at the premises of the contractor, and at the premises of the contractor's customer, must be properly addressed along with completed operations. Business insurance is very important as is workers compensation insurance protection for employees.
Contractors may work under a general contractor as a subcontractor in larger construction projects - like a new commercial site or residential subdivision. They can work on smaller projects directly with a home owner, usually specializing in renovations or remodels.
In business insurance speak, often called 'artisan contractors' or 'casual contractors', they are involved in many aspects of construction and contracting work – and include various trades and skills. Carpenters, painters, plumbers, electricians, roofers, tree trimmers, landscaping are just a few examples. They may do roofing, fencing, drywall, tile work and many other trades that involve skilled work with tools at the customer's premises.
An artisan contractor performs a single trade or job, and each has its own specialized liability needs with its own exposures to risk and accidents. Contractors liability insurance can offer coverage for bodily injury, property damage, advertising injury and medical payments.
Most artisan contractors should have commercial general liability at the very least, but many need broader coverages - like an umbrella to increase their limits of liability, inland marine policy to protect their tools, workers compensation if they have employees, and even commercial auto if they use vehicles for business purposes.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.
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Also find MD local small businesses by General Liability Class Code and learn about Maryland small business insurance requirements for general liability, business property, commercial auto & workers compensation including MD business insurance costs. Call us (443) 407-0500.