Buy Electrical Contractors Insurance

Electrical contractors insurance is a type of insurance that is specifically designed for businesses that provide electrical services, such as installation, repair, and maintenance of electrical systems.

This type of insurance typically includes coverage for property damage, liability, and workers' compensation. It may also include coverage for equipment breakdowns, business interruption, and loss of income.

The purpose of electrical contractors insurance is to protect the business and its owners from financial losses that may result from accidents or other incidents that occur while working on electrical systems.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for electrical contracting businesses ranges from $47 to $69 per month based on location, size, payroll, sales and experience.

Electricians need insurance for a variety of reasons. Firstly, insurance protects electricians from financial liability in the event of an accident or injury on the job. If an electrician is working on a project and accidentally causes damage to a customer's property, the electrician could be held financially responsible for the damages. Insurance can help cover the cost of repairs or replacements, protecting the electrician's personal assets.

Secondly, insurance can protect electricians from legal liability. If a customer is injured as a result of an electrician's work, the electrician may be sued for damages. Insurance can help cover the cost of legal fees and any settlement or judgment that may be awarded.

Finally, insurance can protect electricians from loss of income due to an unexpected event, such as an injury or illness that prevents them from working. This type of electrical contractors insurance can help them pay their bills and support their families while they are unable to work.

Overall, insurance is an important protection for electricians, helping to safeguard their financial and legal well-being in the event of an accident or other unexpected event.

As an electrician, there are several types of electrical contractors insurance 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. Overall, it is important for electrical contractors to have a comprehensive insurance plan in place to protect their business and employees against potential liabilities and risks.

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.

Electrical contractors may be sued for various reasons, including:

• Property damage - Electrical contractors may be held liable for damage caused to the property they are working on. For example, a contractor may accidentally damage a wall or ceiling while installing wiring or electrical fixtures.
• Personal injury - Electrical contractors may be sued if a person is injured on the job site. For example, if a worker falls from a ladder while installing lighting fixtures, the contractor may be held responsible for the worker's injuries.
• Electrical shock - Electrical contractors may be sued if someone suffers an electrical shock due to faulty wiring or installation. This can result in serious injuries or even death.
• Code violations - Electrical contractors may be sued for code violations that cause harm or injury. For example, if a contractor fails to install a ground fault circuit interrupter (GFCI) in a bathroom, and someone is electrocuted, the contractor may be held liable.

Insurance can protect electrical contractors from lawsuits by providing coverage for legal fees and damages. Here are some examples:

General liability insurance - This insurance can protect contractors from property damage and personal injury claims. For example, if an electrical contractor accidentally damages a customer's property while working, general liability insurance can help pay for the damages.

Professional liability insurance - This insurance can protect contractors from claims of professional negligence or errors and omissions. For example, if a contractor fails to properly install wiring and it causes a fire, professional liability insurance can help pay for damages.

Workers' compensation insurance - This insurance can protect contractors from claims of personal injury by workers on the job site. For example, if a worker is injured while working on an electrical project, workers' compensation insurance can help pay for medical expenses and lost wages.

Equipment insurance - This insurance can protect contractors from damage or loss of equipment on the job site. For example, if an electrical contractor's equipment is stolen or damaged, equipment insurance can help pay for repairs or replacement.

In summary, insurance can help protect electrical contractors from lawsuits by providing coverage for legal fees and damages resulting from property damage, personal injury, electrical shock, code violations, and other liabilities.