Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
Whether you’re hired to design an electrical system for a new building or fix an electrical problem in an old house, a lot can go wrong on the job site. For example, faulty wiring could result in property damage, or one of your employees might get hurt while performing their duties. That’s why you need electrician insurance.
Electrician insurance is also called electrical contractor insurance. Think of it as a form of small business insurance that you can tailor to meet the specific risks and needs for your electrician business.
Featured Partner Offers
Complaint level
Extremely low
A.M. Best financial strength rating
A- (Excellent)
Compare Quotes
Compare quotes from participating carriers via Simplybusiness.com
A.M. Best financial strength rating
A (Excellent)
Compare Quotes
Compare quotes from participating carriers via Simplybusiness.com
A.M. Best financial strength rating
A++ (Superior)
Compare Quotes
Compare quotes from participating carriers via Simplybusiness.com
Who Needs Electrician Insurance?
An electrician’s work typically includes unique risks like live wires, active circuits and specialized equipment, which means electrician insurance is a necessity. It’s good for electrical contractors who perform tasks, such as:
- General electrical (including basic repairs or installations)
- Lighting
- High voltage
- Low voltage
- Fiber optic
- Electrical controls installation
What Does Electrician Insurance Cover?
Electrician insurance is a policy that contains several types of small business insurance that cover a business from a range of problems, including the cost of claims, damages and lawsuits. The coverage types you select vary depending on the specific needs of your business.
You can bundle three essential coverage types into what’s called a business owners policy (BOP). It’s usually cheaper to buy a BOP rather than purchasing each type separately. Here are the coverage types and what they cover:
Business liability insurance
General liability insurance is the foundation of your business insurance plan. It covers property damage and bodily injuries accidentally caused to others (not including your employees). For example, if faulty wiring sparks a fire causing both property damage and injuries, your liability insurance could pay for medical bills, court judgments, settlements and legal defense.
Commercial property insurance
This covers the physical location of your business and business equipment if they’re damaged due to a problem covered by your policy, such as a fire. Commercial property insurance covers both owned and leased equipment, including computers, office furniture, tools, inventory, supplies, business records and valuable papers.
Business interruption insurance
This coverage replaces lost income if you have to shut down temporarily due to a problem covered by your policy. For example, business interruption insurance covers problems like theft, wind damage, money lost due to damaged merchandise, lost earnings and additional expenses, such as temporarily moving to a new location. This coverage is also called “business income insurance.”
Other Small Business Insurance Types
You can …….
Source: https://www.forbes.com/advisor/business-insurance/electrician-insurance/