Electrical engineers play a significant role in any construction project. The client will usually come up with the proposal and leave you to do the heavy lifting. You must determine feasibility, account for various factors, and develop solutions for any arising issues.
If anything goes south while implementing the project, your client will hold you liable for any safety issues, delays, and financial losses they incur. Taking out electrical engineer insurance protects your firm from such perils. It affords you the ease of mind to kickstart your business’s growth.
Dig in as we discuss the intricacies of tailored insurance for electrical engineers, how much it costs, the best companies, and more.
is must-have coverage for electrical engineering firms. It should be your first option when considering insurance coverage for your business. The policy protects your business finances if you or your employees harm a third party. It'll cover any financial liability if you or your employees cause bodily injuries or property damage while at work.
General liability insurance for electrical engineers covers:
Bodily injuries - A contractor working on the same project may trip over your cables and fall down a flight of stairs, sustaining life-threatening injuries. They may sue your firm for damages and settlement. Your liability cover will meet the costs relating to this incident.
Property damage - If an overloaded circuit catches fire, it may set the whole building ablaze. If your firm is found liable for the damage, your client might sue to get compensation. Your policy will cover the legal cost and compensate the property owner up to your coverage limits.
Reputational and advertising injury - Sometimes, your efforts to grow your business may cause a rival to incur a financial loss. Your liability policy will cover your business if you're found liable for libel, copyright infringement, slander, or invasion of privacy.
While helpful, general liability insurance protects your business against financial losses relating to third-party claims. You need additional coverage to fully protect your business from all the potential hazards in your line of work. In particular, one that’s very essential is professional liability insurance.
Professional liability insurance, also called errors and omissions (E&O) coverage, covers you against damages and lawsuits. The policy protects your business against violation of good faith, violation of fair dealing, negligence, misrepresentation, and other acts considered errors and omissions. Given the complex nature of your work, one slight mistake could lead your clients to incur huge losses. They could sue you in a court of law to recover damages. Electrical engineers' professional indemnity insurance covers any compensation or damages award and your legal fees.
There are two types of professional liability insurance - claims made and occurrence. An occurrence professional liability insurance provides coverage regardless of when a covered incident happened. On the other hand, claims-made professional liability insurance only provides coverage to covered incidents that happened while it’s active.
The solar contractor that will hire you will surely have solar installation insurance with professional liability coverage. And so, request them to name you as an additional insured. By doing so, if the solar contractor commits negligence or mistakes and you’re pulled into the mess, their professional liability insurance extends to you.
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Worker's compensation insurance coverage is mandatory for electrical engineering firms in all US states except Texas. The policy protects your firm from expensive liabilities that result from workplace injuries and illnesses. The policy covers an employee's bill and provides employee benefits. Refer to the table below to see what’s covered by workers' compensation insurance.
Employee Treatment/Medical Procedure
|Electrical shocks, burns, fires, explosions, and chemical exposure are the top hazards your electrical engineering firm’s employees face. When they become injured or sick because of any of these and need medical attention, workers' compensation insurance gets into the scene. It will pay for surgeries, therapies, and other medical treatment/procedures required
|Your electrical engineering firm’s employees will need to stay at the hospital upon sustaining a work-related injury or disease. Hospital bills are never cheap. Workers compensation insurance sees to it that your employee enjoys adequate hospital care by shouldering the bills
|The employee of your electrical engineering firm will need medicines to recover from a work-related injury or disease. Workers' compensation will also take care of this. In practice, it will provide money your firm’s employee can use to buy the needed medicines
|Work-related accidents such as electrocution and falling from a height result in injuries that impair bodily functions. This calls for rehab. It’s also the job of workers’ compensation insurance to cover therapist fees, rehab equipment, and other related costs
Lost Income Compensation
|When an employee can’t come to work due to a work-related injury or disease, your electrical engineering firm must cover lost wages. Covering lost wages is very costly if you use business funds. But there’s no problem if you have workers' compensation insurance. Workers' compensation insurance provides a weekly allowance equal to 67% of the weekly wage to cover lost income.
|Your electrical engineering firm’s employee will die due to a work-related injury or disease. If this happens, workers' compensation insurance will help by providing death benefits. Death benefits include but are not limited to funeral payments and financial aid to the deceased’s family
You don’t need workers' compensation insurance if you’re working alone. However, know that specific states in the US require independent professionals to get workers’ compensation insurance for themselves. With that said, check with your state workers comp department or labor department.
The sanctions for not getting workers' compensation insurance for your electrical engineering firm vary from state to state. Here are some examples:
Washington - Workers compensation insurance is required as soon as you have one or more part-time and full-time employees. The penalty for not getting it is $500 or twice the amount you would’ve paid in premiums.
California - Your electrical engineering firm must purchase workers' compensation insurance even if there’s only one employee. Failure to get covered is a misdemeanor, punishable by a $10,000 fine, one-year imprisonment in county jail, or both
Massachusetts - You're required to get workers' compensation insurance for yourself and your employees. An exception applies if your electrical engineering firm is an LLC, LLP, or an unincorporated sole proprietorship. Not getting workers' compensation insurance is punishable by $100 starting from the day state authorities send a notice and will accumulate until the coverage is purchased and fines are paid
Electrical engineers maintain offices and other storage spaces to keep their expensive tools, equipment, confidential documents, and other assets. Such premises are prime targets for thieves and vandals looking for a quick payday. Commercial property insurance protects your business against such perils. The policy primarily covers:
|If your electrical engineering firm’s office or storage burns in a fire or is wrecked by extreme weather, commercial property insurance will kick in to recover losses. The amount of money you’ll receive will be equal to the actual cash value or replacement cost of the destroyed property
|Theft, fire, vandalism, extreme weather, and other covered perils will damage the windows, roofing, gutters, siding, or other structures of your electrical engineering firm’s office or storage. In such a situation, commercial property insurance will recover losses based on the actual cash value or replacement cost of the damaged structures
Commercial property insurance has additional inclusions - stocks and contents coverage and business equipment and tools coverage.
|Stocks and Contents Coverage
|Business Equipment and Tools Coverage
|Stocks and contents coverage will help to recover losses if the items inside your electrical engineering firm’s storage or warehouse become damaged or lost due to fire, theft, vandalism, extreme weather, and other covered perils
|Business equipment and tools coverage will reimburse what you spent or provide replacements if voltmeters, voltage testers, function generators, and other electrical engineering equipment or tools got destroyed or damaged within the premises of your firm
Commercial property insurance doesn’t cover mudslides, floods, and earthquakes. But note that you can get mudslide insurance, flood insurance, and earthquake insurance as stand-alone policies or riders to commercial property insurance.
A business owner's policy is a bundled insurance product of different electrical engineers' most useful insurance coverages. It combines general liability, worker's compensation, business property, and other policies into a single affordable insurance package. Insurers offer BOP policies at a discounted rate, which can help you save money while getting comprehensive coverage.
Electrical engineers and their employees must travel to a client's site to discharge their duties. That calls for them to maintain a fleet of work vehicles to facilitate travel. The commercial auto insurance coverage covers your business against perils associated with the use of a commercial vehicle.
Auto Liability Coverage
|Your electrical engineering firm’s vehicle will cause an accident and injure third parties or damage properties. As provided by law, it’s your job to take care of the resulting costs. Commercial auto insurance has auto liability coverage. This covers the medical expenses of persons your commercial vehicle injured. It also reimburses the owners of damaged properties. Last but not least, auto liability coverage takes care of attorney fees, administrative costs, compensatory payments, and other legal costs if an aggrieved party decides to take legal action
Physical Damage Coverage
|Commercial auto insurance has physical damage coverage which will mitigate the cost of vehicle parts repair or replacement. Physical damage coverage has two types - collision and comprehensive. When your electrical engineering firm’s commercial vehicle becomes damaged due to fire, theft, vandalism, and other covered perils comprehensive physical damage coverage will be the one to cover parts repair or replacement. On the other hand, collision physical damage coverage will take care of costs if your business’s commercial vehicle crashed into an object or another vehicle and incurred damage
Rental Reimbursement Coverage
|Rental reimbursement coverage becomes useful if repairing the commercial vehicle of your electrical engineering takes long. What this does is recoup what you spent on vehicle rental
MedPay/Personal Injury Protection
|MedPay/personal injury protection will protect your commercial vehicle’s driver and passengers during a vehicular accident. MedPay covers funeral and medical expenses if the driver and passengers sustain injuries after the commercial vehicle causes or gets involved in an accident. Personal injury protection does the same but provides additional coverage for lost income, after hospital visits, and more
Your electrical engineering firm will benefit more from commercial fleet insurance than commercial auto insurance. Commercial fleet insurance allows you to insure multiple commercial vehicles at a cheaper price. This means that it's more efficient than insuring your business’s vehicles with separate commercial auto insurance policies.
Given the breadth and scope of electrical engineering projects, you need much more than the ones we discussed above. These additional policies cover your engineering firm against specific perils that will incur substantial financial losses.
Cybercriminals are increasingly targeting small and medium businesses because they make softer targets. Your engineering firm may fall victim to various cyberattacks, including ransomware, virus, hacking, data breaches, etc. Such incidents may lead to denial of service or expose sensitive client information. Cyber liability insurance for electrical engineers covers your business against the resultant fallout. It'll cover the cost of:
Informing your clients about the breach
The resultant lawsuits and settlements
Safeguarding your business reputation
Damages related to the data breach
All cyberattack related damages
Business equipment and tools coverage in commercial property insurance only helps if electrical engineering equipment and tools become damaged within the premises of your firm. That said, you need another insurance to cover loss or damage of equipment and tools on the project site. Get equipment and tools insurance.
Equipment and tools insurance will provide reimbursements or replacements if your electrical engineering firm’s equipment becomes lost or damaged on-site due to fire, theft, vandalism, and other covered perils. Note that normal wear and tear is excluded.
Employer’s liability insurance provides protection when an employee sues your electrical engineering firm for negligence after experiencing a work-related injury or disease. This insurance covers attorney fees, payments the court awards, administrative costs, and other legal expenses. Before getting employer’s liability insurance, ask the workers comp department of your state whether or not employees are prohibited from suing for negligence if employers are covered by workers compensation insurance.
Employers’ practices liability insurance protects you if an employee files a claim for workplace discrimination, sexual harassment, wrongful termination, and other violations of employee rights. The coverage of this insurance includes attorney fees, payments awarded by the court to the aggrieved party, administrative costs, and other legal expenses.
Business interruption insurance will mitigate losses if your electrical engineering firm needs to stop operations to renovate, relocate, or allow an economic crisis to pass. This helps by providing the money you can use to pay for operational costs such as employee wages, water bills, electrical bills, loans, and more.
Most electrical engineering firms spend $38 a month or $456 annually on $1 million general liability insurance. Professional liability insurance will likely set you back $150 a month or $1,800 annually. The actual cost of your electrical engineer insurance policy depends on various factors, including:
Type of coverage
Your business income
Area of specialization
An engineering firm's ideal commercial liability insurance policy features a coverage limit of $1 million per occurrence and a $2 million aggregate.
You can secure the best risk coverage at an affordable rate by shopping around. We simplify the experience when shopping for electrical engineering insurance quotes for the top insurers in the country. Click the "Get Quotes" button on this page to get the best deals on insurance coverage.
|Cost per Month
|Cost per Year
|Electrical engineers looking to purchase insurance online
|Electrical engineers who require multiple insurance coverage to run their businesses
|Startups, large and small engineering firms looking for specialized insurance coverage
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Having the right insurance coverage is of utmost importance to electrical engineering firms. It provides the leverage you need to undertake new projects by bolstering your competitive edge. Here are some of the best insurance carriers for electrical engineers. Read the reviews below to know their pros, cons, and monthly rate for a $1 million general liability coverage.
Provides online quotes from top-rated insurance providers
Intuitive, user-friendly dashboard
Live chat with skilled online agents
It's not an insurance company
CoverWallet is a New York-based online insurance brokerage platform. The platform simplifies your ability to purchase comprehensive insurance coverage for your engineering firm. You can easily compare quotes from top insurers in the country and create the personalized coverage you need to safeguard your business and remain competitive. CoverWallet lets you pick the coverage you need, pay the premiums, and download the certificate of insurance in minutes. You can also file your claim through the platform.
Best for: Electrical engineers looking to purchase insurance online
Average cost: $35 per month
Our rating: 10/10
Cost-saving bundled services
No policy cancellation fee
Offers free online quotes
Offers services 24/7
Operates exclusively online
Since its founding in 2015, Next Insurance has been a popular choice for small and medium businesses. The insurance company specializes in offering bundled insurance coverage at discounted rates. Thanks to innovative technology, Next insurance carries some of the lowest insurance rates. The company operates exclusively online, cutting out brokers and intermediaries.
Best for: Electrical engineers who require multiple insurance coverage to run their businesses
Average cost: $41 per month
Our rating: 8/10
Has a diverse range of insurance products
Provides bundled insurance policies at a lower cost
Insures businesses declined by standard insurers
Some covers can't be purchased online
Charges higher premiums
Chubb is the largest publicly traded property and casualty insurance company. It's highly regarded for its exceptional customer service and claims settlements. While the insurer offers different personal and business insurance coverage, the cost of the premiums is above average. However, you can save money by purchasing bundled insurance coverage at a discounted rate. Chubb is the ideal choice if you have trouble getting insurance coverage.
Best for: Startups, large and small engineering firms looking for specialized insurance coverage
Average cost: $45 per month
Our rating: 9.5/10
Electrical engineering projects are high-stakes games where your clients stake their financial wellbeing. Taking out adequate insurance coverage ensures that you don't betray their trust while protecting your cash flow and business reputation. The right coverage allows you to push the engineering limits without endangering your business or your clients' investments. We can help you save money on electrical engineering coverage by allowing you to compare quotes from top-rated insurance carriers.
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!