Electricity is an important component in our lives and in this digital world, it is practically a basic need. As important as electricity can be, it can also be dangerous.
As an electrician, you will be exposed to different dangerous situations on the job each day. You are constantly dealing with active circuits, live wires, and specialized equipment while doing electrical work.
You also can be asked to do electrical work during extreme weather conditions to ensure that people will have power. There is also the risk of causing property damage or accidents to others while doing your job.
All of these situations can result in an extreme financial loss that can leave you bankrupt. Are you ready for those risks?
One way to protect your business and yourself as an electrician is to get an electrician insurance policy. People do not think much about it but getting insurance for business actually helps a lot when you need it the most.
Some people think you are just spending money monthly for something that you do not use when it comes to business insurance. But the reality is, accidents can happen anytime! The point of having your insurance is to be ready when these incidents happen to you.
In the end, the cost of your insurance is nothing compared to what you will be paying if you find yourself in an accident, caught in a lawsuit, or having your office and tools vandalized.
Do electricians need insurance?
When you get electrician insurance, you protect yourself, your career, and your business from the risk of going through a financial downfall.
Electrician insurance is a type of business insurance designed to protect you from work-related accidents and lawsuits. If you make a mistake on the job that results in physical harm, your client’s financial loss, or property damage, you can get sued.
As we all know, lawsuits can be costly – even if the court grants the case in your favor. Accidents also mean getting medical attention and this can also be very expensive. Damage on your tools and office will also cost you a lot of money.
If you shell out these payments from your own pocket, it can drain out your life savings! With insurance cover, you will be able to have a safety blanket over your finances because the policy can help cover these payments. In the end, you will be able to protect your business and your personal assets.
Getting electrician insurance is not just about protecting yourself. Insurance protects your clients as well. Having the right coverage means you will be able to pay them for damages in case you mess up on the job. In fact, some clients will ask for proof not only of your license but also that you carry insurance before they hire you. This is their way of making them feel more secure about you.
Getting insurance is also about complying with state laws. Some types of insurance are required such as professional liability coverage and workers’ compensation. The insurance requirements will vary depending on what state you are in so make sure to check your local state laws.
What type of insurance does an electrician need?
There are a lot of options for electricians when it comes to coverage that will be useful for their business and career. Each type of insurance covers different circumstances.
This is why most electricians get more coverage as add-ons to their chosen policy or get two or more separate policies.
Here is a list of the available options that most insurance carriers can offer to electricians:
This is probably the most basic and most common type of insurance electricians carry. A general liability insurance policy covers most of the common incidents that an electrician can face on the job such as accidents on the job whether it happens to you, your client, or an employee. General liability coverage can also handle property damage.
Most electricians go with a general liability insurance and then get other types of coverage as add-ons to their policy. Check with the insurance agency if this is possible for you.
This type of business insurance will cover liability for your professional services. It is most useful when you commit an error on the job and your client sues you for it.
Some people think that professional liability and general liability are the same things but they are actually two different types of coverage.
While professional liability will cover incidents that stemmed out from your services as an electrician, general liability insurance will cover general issues such as accidents on the job or in your office.
Let us say you did a wiring job in a house and then the house had an electrical fire caused by faulty wiring. You could be held responsible for that fire and get sued by your client.
A professional liability insurance can cover the cost of your attorney fees, court fees, and even settlements. It can cover up to the amount agreed upon in your chosen policy.
Most states would require you to carry professional liability insurance in order to get a license.
If you have your own office, you should consider getting commercial property insurance too. This type of business insurance coverage will cover your property and the items inside it such as your tools and furniture in case of a loss due to theft, vandalism, fire, and natural disasters.
An electrician carries around a lot of power tools that can be targeted by thieves since they are expensive. These tools can also be expensive to repair or replace.
If you have tool insurance, you get coverage when something happens to your tools so that you can repair or fix them easily. This type of business insurance coverage will include theft and damage from vehicle collision or fire.
Electricians are exposed to a wide variety of health and safety concerns on the job so health insurance is crucial. You can get a separate medical insurance plan or try to get a specialized electrician insurance business plan that also gives you health coverage.
This type of business insurance is required in most states for all business owners. A workers’ compensation insurance will cover the medical bills, rehabilitation, and lost wages of your employees if ever they get injured while doing their job. This type of business policy helps business owners tend to the needs of their employees.
Electrical contractors work anywhere and they do house calls so vehicles are needed to go from one place to the next. Whether you have a dedicated business car for the job or you are using your own personal car, commercial auto coverage is something you should consider getting
This does not only cover car accidents but also when you cause property damage to your car while on the job. This policy also covers car theft.
Take note that your personal auto insurance may not cover damages that have been done when you are using your car for work. A commercial auto insurance can do the job for you.
How much does electrician insurance cost?
There is no general answer to this question since insurance policies these days are personalized to fit each person’s needs. The total of your premium will depend on different factors so what another electrician is paying may be higher or lower than what you will be asked to pay.
For accurate pricing, you have to get a quote from an insurance provider. When you do so, get a couple of quotes from different insurance providers so you can compare the policies.
To give you an idea, here is a list of the factors that most electrical contractors insurance companies look into when it comes to determining the cost of your insurance:
Where you are operating as an electrician will measure on the total cost of your premium. If you live in a small town, you can pay less for your premium. But if you live in a busy city, you can pay a higher price for your insurance. If there is a high crime rate in your business location, you may also be asked to pay a higher insurance since the risks are greater in your area.
High-risk jobs and activities will affect the cost of your insurance policy and raise the price. Electrical contractors will definitely be given higher premiums compared to teachers because they are more exposed to danger.
The services that you offer as an electrician will also matter. These days, electricians are no longer limited to installing power points or wiring up houses. They also do solar installations and installing other electrical units such as air conditioning, security systems, and water heaters. You would want to specify these services that you cover so that you get proper coverage.
Experience and credentials
If you have been in the business for a long time, carry a license or certification, and have a good record, your insurance cost will be lower compared to if you were just starting out. Insurance companies will also check your claims history to determine how risky your electrical business is.
Number of employees
The number of employees you have working for you will also affect the total cost of your electrical contractors insurance. This is also a basis of how big your electrical business is. Generally, the more employees you have, the higher the insurance will cost.
The type of policy you are getting will affect the total cost of your premium. The more coverage you ask for, the more expensive it will get.
Tips on applying for an electrician insurance policy
Picking out the best electrical contractors insurance policy can be an overwhelming task. You will need different types of insurance coverage and may be getting more than one policy to make sure you are properly covered.
So where should you start? Here are some tips that you should keep in mind when shopping for the right policy.
Get as many quotes as possible from insurance providers
When you begin exploring your options for electrician insurance, you should get multiple quotes from insurance providers working in your area. This helps you compare policies easier and lets you see which one has the most value.
All you have to do is go on the website of the insurance agency and fill up a form to get a quote. It is very easy and simple you can be done in minutes.
If you do not have the time, you can also hire an insurance agent who works with multiple insurance carriers to provide you with possible options.
Understand the electrical contractor insurance coverage
Now that you have all the quotes, it is important that you understand the coverage being offered. Do not just study what is included but also take note of the things that are not included in the contractor insurance policy. Focusing on the specifics will avoid any surprises later on when you file a claim.
Read insurance agency reviews
When you have your top 3 picks, start doing your research on the insurance company and read reviews. When reading reviews, focus on customer service. Are they easy to reach? Do they respond well? You can even test how effective they are by calling them up and asking a few questions about the policy you plan to get.
An insurance company with responsive and knowledgeable customer support is very important. You do not want to have a hard time filing your claim or getting a response from them when you badly need it.
Remember, no matter how good you are at your job or how many precautionary measures you implement, an unfortunate incident can still happen. It’s a fact of life – some things can still go wrong despite our best efforts.
Do not wait for an incident to take place before you start to think seriously about protecting yourself and your assets. Given the possible risks and dangers associated with your job, insurance coverage is vital.