Electrician Insurance & Electrical Company Insurance for Contractors

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Working as an electrician or an electrical contractor isn’t a walk in the park. Accidents can happen and this will result in injuries or property damage not only to customers but to you and employees too.

And so, consider getting electrician insurance, also called electrical contractor insurance. Read this guide that discusses how this insurance works and how much it costs. We suggest you finish reading because we’ve included a review that helps you find the best electrical contractors insurance company. 

Also read:

Electrical Contractors Insurance

Electrical contractors insurance is a tailored coverage that caters to the risks unique to your line of work as a:

  • Commercial electrical contractor

  • Residential electrical contractor

  • Maintenance electrical contractor

Don’t think that electrical contractor insurance is a policy that functions on its own. In truth, this insurance product is made out of different business insurance policies such as liability insurance, business property insurance, and more.

Electrician Liability Insurance

Electrician liability insurance, also called electrical contractors liability insurance, pertains to general liability policy that provides protection against personal injury claims or property damage claims. However, note that professional liability and public liability insurance policy can be considered liability insurance for electricians too. The following sections explain how these policies work.

General Liability Insurance for Electricians

As said earlier, general liability insurance provides protection when you cause personal injuries or property damage. But note that this type of electrical contractor liability insurance only applies if such are caused unintentionally. Here are some situations where you’ll find general liability insurance useful:

  • You were working on the wiring situated in the interior wall of a client’s house. While checking on you, the client touched a live wire and sustained burns

  • Employees were fixing the poorly installed wiring on a commercial building. For some reason, one of the wires suddenly flashed, caused a fire, and damaged the building’s ceiling

So how does this policy work? General liability insurance functions to:

  • Pay or reimburse the medical expenses of third parties who sustained injuries due to the electrical service you provided

  • Refund the value of the property that sustained damage or got destroyed due to the electrical service you provided

The insurance money you’ll get from general liability insurance is $1 million-$2 million. This is the standard policy limit set by most insurance companies.

However, note that you’ll find carriers selling a custom general liability insurance for electricians that provides $300,000 - $500,000 minimum coverage. Aside from this, you can also choose to add optional policies such as:

  • Products and completed operations coverage-If a client files a personal injury claim or property damage claim days, weeks, or months after you completed an electrical service, you can use products and completed operations coverage to cover administrative costs, settlements ordered by the court, attorney fees, and other legal expenses

  • Advertising injury coverage-Advertising injury coverage will cover costs if you’re sued for slander, libel, copyright infringement, and other types of advertising or reputational harm

  • Rented premises liability coverage-Rented premises liability coverage is an add-on to general liability insurance that will refund the owner if the commercial space you’re renting as an electrical contractor is destroyed or damaged by a fire

General liability insurance only covers personal injuries or property damage claims filed by third parties. Third parties, as used in the terms of the policy, pertain to clients, visitors, vendors, and other entities who don't have any direct relationship with your business. That said, general liability insurance doesn’t provide coverage if employees, shareholders, co-owners, and contractors file a personal injury claim or property damage claim.

Many opt to go for general liability insurance because it can be customized as an electrical service business grows. But what if you’re just starting out and only need the most basic coverage? General liability insurance is still recommended. However, if you want an alternative electrical company insurance, then go for a public liability policy.

Public Liability Insurance for Electrical Contractors

Public liability insurance covers personal injury claims and property damage claims filed against you by customers, visitors, and other third parties.

This is cheaper than general liability insurance but not because it doesn’t give a lot of coverage. Just like general liability, public liability insurance also gives $1 million-$2 million insurance money.

So what’s the reason why public liability insurance is less costly? This type of insurance is more affordable because it can’t be added with optional policies. While this is good budget-wise, there’s also a drawback since public liability insurance will be obsolete once you pick your pace as an electrical contractor.

Electrical Contractors Errors and Omissions Insurance

Your clients won’t only sue for personal injuries or property damage. Any economic losses or financial losses they sustain due to the issues with the service you provided are also a cause. Consider the following situations:

  • An employee installed wires hastily. As a result, a short circuit happened and a fire originated in a client’s building. The building sustained minor damage that was costly nonetheless. And so, the client in question decided to sue your company for negligence to recoup repair expenses

  • An engineer asked you to design the wiring for a building. However, the design you provided conflicted with the building’s plan. And so, the engineer had to spend money to reverse the damage done. He decided to sue and accused that your advice was erroneous

The policy that provides help in the above situations is errors and omissions insurance. Also called professional liability insurance or electrical contractor E&O insurance, this business insurance for electricians covers attorney fees, administrative costs, settlements and other legal expenses if a client sues you for committing or allegedly committing any of the following:

  • Negligence

  • Misrepresentation

  • Breach of confidentiality

  • Missed deadlines

  • Violation of good faith

  • Violation of fair dealing

  • Inaccurate advice

Errors and omissions insurance for electrical contractors is sold as a claims-made policy or occurrence policy.

Occurrence professional liability insurance provides coverage when you decide to file a claim on the time a covered peril happened or long after a covered peril occurred. What’s important is that the incident took place while the terms of occurrence professional liability insurance are active. Here are some examples for you to understand:

  • A client sued you for negligence on August 8. You decide to report the incident to the insurance company on the same date. Occurrence professional liability insurance provides coverage in this case

  • A client sued you for inaccurate advice on Friday. You only reported the incident to the insurance company 1 week later. Since it’s an occurrence policy, professional liability insurance still provides coverage

As compared to its occurrence counterpart, claims-made professional liability insurance is less trustworthy. It’s because it only provides coverage if you file a claim on the time a covered peril happened. Here’s an example:

  • A client accused you of committing misrepresentation on July 10. If you file a claim for the insurance on the same day, then coverage applies. However, if you decide to use the insurance days, weeks, or months later, then it’s highly possible for your claim to be rejected

The errors and omissions insurance for electrical contractors has a $1 million-$2 million policy limit. But you can also find insurance companies underwriting an electrical contractor's errors and omissions insurance having a $3 million-$5 million limit.

Umbrella Liability Insurance for Electrical Contractors

You can exhaust the limits of your professional liability insurance or general liability insurance. It’s also possible for a highly expensive claim to be filed, which both policies can’t fully cover.

Note that when both insurance have run out or can’t fully cover a claim, you’ll have to pay for the excess yourself.

Insurance companies sell umbrella liability insurance, which provides help if your general liability or professional liability insurance can’t fully cover the cost of a claim filed by someone against your business.

Umbrella liability insurance is an endorsement to the general liability or professional liability insurance of electrical contractors. It extends or supplements the limits of both policies.

For example, if a third party demands $2 million for his injuries and your general liability insurance only has $1 million, umbrella liability insurance will cover the excess so that you can fully settle the claim without using personal funds.

Umbrella liability insurance provides coverage in increments of $1 million. That said, the insurance money you can get from the policy can amount to $1 million, $2 million, $3 million, and so on.

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Commercial Property Insurance for Electrical Contractors

As an electrical contractor, you certainly use a small office or a large commercial facility. You must realize that your office or commercial facility can get destroyed or damaged and losses will be incurred. 

Give yourself the chance to recover by purchasing commercial property insurance. Commercial property insurance functions to:

  • Refund the value of the damaged structures of your office or commercial facility 

  • Refund the value of the entire office or commercial facility if ever it is burned to the ground or turned into rubble

Insurance companies allow you to use commercial property insurance when any of the following cause the damage or destruction of your office or commercial facility:

  • Fire

  • Vandalism

  • Theft

  • Malicious mischief

  • Sinkhole collapse

  • Sprinkler leakage

  • Civil commotion

  • Riot

  • Impact

  • Aircraft

  • Volcanic action

Understand that commercial property insurance doesn’t provide absolute protection. This electrical business insurance can’t help you recover losses if your office or commercial facility is damaged or destroyed by:

  • Mudslides

  • Floods

  • Earthquakes 

You can add additional coverage to your commercial property insurance. By doing so, your office or commercial facility isn’t the only property covered but also the objects inside. Such add-ons are:

  • Stocks and contents coverage-By adding stocks and contents coverage to commercial property insurance, you can recoup financial losses if the interior installations, furniture, computers, CCTV cameras, blueprints, records, and other valuables in your office or commercial facility are destroyed by the perils above 

  • Business equipment and tools coverage-Business equipment and tools coverage will recoup losses if the aforementioned perils destroy or damage PPEs, drills, hammers, ladders, and other equipment used for electrical work 

Commercial property insurance for electrical contractors is available as a replacement cost policy or actual cash value policy. 

Replacement cost commercial property insurance refunds losses based on the original market value of the covered property. For example, if your building is worth $1 million, commercial property insurance provides money equal to this. 

Actual cash value commercial property insurance recovers your losses based on the covered property’s depreciated market value. So if your building is worth $1 million and it depreciated by 10%, commercial property insurance only gives you $100,000. 

You get to decide the limits of commercial property insurance. The minimum coverage you can get from it is $10,000-$25,000. If there’s a lot of commercial property to cover, you can decide for the policy to give $50,000 or more. 

Workers Compensation Insurance for Electrical Contractors 

Electrical work is very dangerous. 7,400 electricians suffer a non-fatal work-related injury. The incident rate is 122.2 per 100,000 individuals. 

Common injuries in electrical work are burns, fall injuries, stress injuries, cuts, bruises, and even death. These are caused by accidents such as:

  • Flash

  • Falling from a height

  • Contact with live wires 

Having workers' compensation insurance is smart if you hire part-time or full-time workers as an electrical contractor. It covers the expenses if an employee experiences an accident and sustains injuries. Particularly, workers' compensation insurance takes care of:

  • Medical expenses-If an accident happens at work and an employee is injured, workers compensation insurance pays for ambulance fees, emergency room fees, and other related medical expenses

  • Hospitalization-Workers compensation insurance will provide the funds your employee can use to cover hospital bills if he or she needs to be admitted to the hospital after sustaining a fracture, burn, head trauma, or any other severe work-related injury

  • Medication-The funds of workers' compensation insurance can be used to buy the prescription medicines your employee needs to fully heal from a work-related injury

  • Rehabilitation-Workers compensation insurance pays for rehab expenses such as therapist fees and equipment if an employee is temporarily or permanently impaired after experiencing a work-related accident 

  • Lost income compensation-Some work-related injuries like burns or fractures will force your employee to stop working.  In this situation, workers' compensation insurance will cover your employee’s lost wages. He or she will receive a weekly allowance equal to two-thirds or 67% of the average weekly wage. 

  • Death benefits-You can use workers' compensation insurance to cover funeral expenses and provide an allowance to dependents if your employee dies due to a work-related accident 

You must understand that workers' compensation insurance doesn’t have a set limit. The amount of insurance money your employee can get from this depends on the workers' comp law of the state where your business is located. 

It’s easy to estimate the premiums of your workers' comp. All you have to do is figure out the average payroll of each employee, divide those by $100, then multiply the quotient by the rate of the insurance company’s workers' compensation insurance. 

Electrical Contractor Commercial Auto Insurance 

As an electrical contractor, it’s certain that you own a commercial vehicle for transporting equipment, meeting clients, and going to project sites. 

Carriers underwrite commercial auto insurance. Purchase this so you don't incur losses when something happens to the commercial vehicle of your business.

Commercial auto insurance doesn’t function on its own. Rather, in its terms are the following coverages:

  • Auto liability coverage-Auto liability coverage provides help if you caused an accident while driving the commercial vehicle to go to a project site. It will cover the medical treatment of third parties who got injured by the accident. Auto liability coverage will also refund the value of damaged properties. You can also use this coverage in commercial property insurance to cover attorney fees, administrative costs, and other legal expenses 

  • Physical damage coverage-This covers repair and replacement expenses if your commercial vehicle sustained damage. Carriers offer physical damage coverage as a collision policy or comprehensive policy. If you get it as a comprehensive policy, physical damage coverage only covers repair or replacement costs when your commercial vehicle sustained damage due to theft, fire, vandalism, and other covered perils. If bought as a collision policy, physical damage coverage will cover repair or replacement expenses when your commercial vehicle crashed and got damaged

  • Uninsured/underinsured motorist coverage-Uninsured/underinsured motorist coverage helps when your commercial vehicle gets involved in an accident caused by a driver who isn’t insured or doesn’t have insurance.

  • Personal injury protection-Personal injury protection covers the medical treatment, funeral, lost income compensation, rehabilitation, and after hospital visits of the driver or passenger of your commercial vehicle who got injured in a car accident

  • Medical payments coverage-Medical payments coverage only covers the medical treatment or funeral of the driver or passengers of your commercial vehicle who sustained injuries because of a car accident 

  • Hired/non-owned auto liability insurance-Hired/non-owned auto liability insurance will cover settlements, administrative costs, and other legal expenses if a commercial vehicle you hired or borrowed caused an accident and injured third parties or destroyed their property

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Electrician Insurance Cost 

So how much is electrician insurance? Expect to pay  $35 per month or $420 per year for a $1 million general liability insurance policy. 

But note that electrician insurance cost isn’t the same for all customers. The figure we provided is just an estimate.  And so, it’s possible for your actual rate to be more expensive or cheaper. 

Insurance companies determine electrical contractor insurance cost based on different factors. Namely, these are:

  • Location

  • Payroll

  • Business history

  • Claims history

  • Business experience

  • Number of employees

Of course, your choice of carrier also determines the premiums of your electrical insurance cover. After all, the insurance company you decide to work with can have cheap or expensive rates. Here’s a table that gives you an idea of the rates of  the best insurance companies:

Cost per MonthCost per YearBest for
CoverWallet$18$216Electrical contractor insurance online quotes comparison
CommercialInsurance.Net$20$240Comparing electrician insurance quotes over the phone
Thimble$23$276Short-term coverage for electricians
NEXT$29$348General liability insurance for electricians that also functions as a professional liability insurance policy
Hiscox$37.50$450Electrician insurance with worldwide coverage
State Farm$46$552Installation floater for electricians

Always compare quotes to understand how much your premiums will cost. By comparing quotes, you get to see which insurance company sells the best electrician insurance at the most reasonable rate. Start comparing the quotes of insurance companies online by clicking the “Get Quotes” button on this page. 

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Best Electrician Insurance Companies 

Read the reviews below to know the pros, cons, and the average $1 million general liability insurance rate of the best carriers.

CoverWallet Electrician Insurance


  • Unlimited certificates of insurance

  • You can name a landlord or a client as an additional insured to your general liability policy

  • Purchase your insurance online

  • Manage your insurance online 


  • CoverWallet can’t provide a quote if your business profile is poor 

CoverWallet’s electrician insurance is available in four forms. First and foremost, you can get it as an insurance plan that only provides a general liability policy with products and completed operations coverage.

This company’s second variety of electrician insurance offers the protection of general liability and professional liability policy. The third option is an insurance plan that bundles general liability, professional liability, and workers' compensation insurance. 

If you go for the final option, what you’ll get is a custom plan where you’re free to add commercial auto insurance, business interruption insurance, and other products CoverWallet sells on behalf of its partners. 

We must mention that CoverWallet has an online quotes comparison platform you can use to see the offers and rates of companies providing tailored coverage for electrical contractors. With this, CoverWallet is a perfect fit if you’re searching for carriers underwriting a tailored journeyman electrician insurance plan.  

Best for: Electrical contractor insurance online quotes comparison

Average cost: $18 per month

Our rating: 10/10

CommercialInsurance.Net Electrician Insurance 


  • Hooks you up with other companies if it can’t provide coverage

  • A representative will help you compare quotes by the phone 


  • Doesn’t issue an online quote 

CommercialInsurance.Net sells general liability, business hazard, commercial property, commercial auto, and other business insurance products for electricians. Note that this carrier can also hook you up with its partners. The only way to get a quote from this company is by calling. But note that this is advantageous since you can thoroughly check the bad points and the good points of your policy before getting covered. 

Call CommercialInsurance.Net now and compare quotes over the phone. 

Best for: Comparing electrician insurance quotes over the phone 

Average cost: $20 per month

Our rating: 10/10

Thimble Electrician Insurance


  • ACORD 25 certificate of insurance

  • Cancel your insurance and get a refund

  • Underwrites short-term coverage for electricians 


  • Doesn’t sell commercial auto insurance for electricians 

Thimble sells an annual electrical insurance offering commercial property and general liability policies. You can also go for a short-term coverage in the form of an hourly, daily, or monthly general liability insurance for electricians. 

The strongest trait of Thimble is that its general liability insurance for electricians has zero deductibles. And so, you’ll get full coverage from the policy. 

Best for: Short-term coverage for electricians

Average cost: $23 per month 

Our rating: 9/10

NEXT Electrician Insurance


  • NEXT offers a digital certificate insurance you can get from its website or app

  • Quickly file a claim online

  • Professional liability insurance is an add-on to general liability insurance


  • Customers used to traditional insurance processes might find NEXT overwhelming 

NEXT offers specialized coverage for independent electricians and those who run their own electrical service companies. If you’re looking for self-employed electrician insurance, NEXT is a good fit because its general liability and commercial property insurance start at the lowest possible limits. In other words, you will avoid paying for too much coverage with NEXT. 

Note that your professional liability insurance from NEXT is already included in the language of its general liability insurance. Other business insurance you can purchase from this company are workers' compensation and commercial auto insurance. 

Best for: General liability insurance for electricians that also functions as a professional liability insurance policy

Average cost: $29 per month 

Our rating: 8/10

Hiscox Electrician Insurance


  • Worldwide coverage

  • In-house team of insurance adjusters


  • Doesn’t sell commercial auto and workers compensation insurance for electricians 

Hiscox sells general liability, professional liability,  and cyber liability insurance for electricians. This company has a dedicated claims center where you can file and track your claim quickly. Hiscox has an in-house team that processes your claim. You should also know that your electrician business insurance policies from Hiscox provide worldwide coverage. This means you’re covered when working in the US and abroad. 

Best for: Electrician insurance with worldwide coverage

Average cost: $37.50 per month 

Our rating: 7/10

State Farm Electrician Insurance


  • Fast to process claims

  • Your electrician insurance can provide coverage for the properties of others in your care 

  • Sells a specialized installation floater 


  • No online quotes 

State Farm sells commercial property, general liability, and mobile equipment insurance for electricians. The company also sells an installation floater that covers electrical materials (e.g. cables and circuit breakers) you’re installing or transporting. While State Farm doesn’t provide online quotes, it  hooks you with a local agent who will help craft a comprehensive protection plan for your electrician business. 

Best for: Installation floater for electricians

Average cost: $46 per month

Our rating: 7/10

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