The Types of Insurance an Electrician Should Consider
The electrician’s trade is exponentially growing. With the emergence of smart technology, electricians need to stay up to date with the latest. Homeowners and some businesses often want to renovate and convert older buildings into new cutting-edge facilities and the electrical work needed to do this can be dangerous. This can hold you, as an electrician liable for a lot of unexpected events that happen in the process.
Investing in the right insurance can protect your company from financial ruin. Through basic coverage, like electricians liability insurance you’re able to have a basic level of protection.
We’ve mapped out the three types of insurances and what they typically cover:
1. Electrical Contractor General Liability Insurance
Often this insurance is required by state law, there are too many things that can go wrong on a job site and having general liability insurance is a standard contractor insurance. Electrical Contractor General Liability Insurance can offer protection for injuries, accidents, and some other very limited circumstances. Having electrical liability insurance can be crucial in allowing your business to survive an unexpected setback. If you don’t have this insurance, it could potentially bankrupt you.
Insurance policies can vary, so it’s important to talk to your insurance company about the particular general liability insurance you need.
General Liability Insurance Typically Covers:
- Third-party bodily injury or property damage. A third party is someone who is neither you or your worker. They can be your customer or a passer-by. If a third-party gets injured while you’re performing on the jobsite or at your office, claims arising from the incident can be covered.
- Completed Products Claims. General Liability Insurance protects you if a completed project caused harm to the homeowner or customer after you’ve completed a project.
- Advertising mistakes.
- Damage to premises rented to you.
There are some exclusions for General Liability Insurance as well.
2. Workers Compensation Insurance
Workers compensation for your company is important in protecting you from potential costly expenses when an employee gets hurt while doing the job. It can cover medical costs, and loss of wages due to disability or during a recovery period.
If you have employees but don’t have workers compensation insurance, you run the risk of needing to defend yourself in a lawsuit. Lawyer fees can be astronomical and are often too expensive for small business owners to pay out of pocket. What could be devastating is if they win the lawsuit, you’re responsible for paying that as well. It could very well cripple a healthy business, so workers compensation is a must when operating as an electrician.
Investing in workers compensation insurance can also attract good employees. Workers are incentivized when they know they are protected under this insurance. Employees are hired exclusively by a company, either part time or full time. Independent contractors do not count as employees.
Workers compensation insurance is complex and each state has different laws. Some require all employers to have, while others don’t. Some workers compensation covers certain injuries while others don’t. Learn more about workers compensation laws for your specific state here.
Workers compensation insurance typically covers…
- All injuries to an employee that are work-related. They must be work-related injuries.
- Injuries of prolonged exposure to chemicals on the job.
3. Commercial Auto Insurance Coverage
Electricians don’t always use big cars and trucks to haul their supplies to and from a jobsite. But that doesn’t mean you don’t need commercial auto coverage. If you did the work of obtaining general liability and workers compensation insurance, but not commercial auto coverage, the first two may not matter. Commercial auto insurance is needed to cover the costs of all your businesses vehicles and the drivers who use them.
Yes, there is a difference between personal auto insurance and commercial.Whether your business has one car or a whole fleet of trucks, you need to have commercial auto insurance to protect yourself from liability that is not covered by your personal auto insurance.
Any vehicle that is used for income producing activities are not covered under your regular personal auto insurance. So even if you’re driving your personal vehicle to the jobsite, you should have commercial auto insurance. Plain and simple.
Commercial auto insurance typically covers…
- Liability, collision, comprehensive and personal injury protection
- Bodily injury liability
- Property damage liability
- All of the workers who drive your commercial vehicles
Insurance policies can vary. We suggest talking with an expert broker to learn more about a particular coverage. If you’re looking to compare rates, affordable electrician insurance rates.
Prices for insurance can vary for electrical contractors. Even if your state doesn’t require these types of insurance, it’s strongly urged that you obtain them so you’re protected if and when mistakes happen.