Working as an electrician or an electrical contractor isn’t a walk in the park. You might get hired for a home improvement project and lose money instead of earning it after getting sued by the contractor or homeowner. Employees might get injured while working. Tools and equipment might get lost or damaged. Get electrician insurance to protect yourself. Read this guide to know how this can help, how much premiums cost, and where to get the best coverage.
There are many instances where electricians have been held liable for the injuries or property damage of third parties. Here are some examples:
A small electrical contractor in Oklahoma faced liability after a man died in Bricktown Canal due to electrocution
An electrician in Perth faced a claim and got fined $2,000 after homeowners received electrical shocks caused by a defective wiring
An owner sued an electrician after his sushi restaurant got damaged in a fire caused by an overloaded circuit board
A general liability policy, also referred to as electrical contractor liability insurance, covers claims for bodily injuries or property damage. This provides $1 million-$2 million you can use to cover these costs:
Medical treatment of the claimant
Reimbursement for the damaged property of the claimant
You get electrician liability insurance as a broad-form policy. And so, it can also do these things aside from taking care of claims for bodily injuries or property damage:
Grant $1 million coverage for libel, slander, and copyright infringement claims
Grant $300,000 coverage if a commercial space you’re renting is damaged by fire
Grant $1 million-$2 million coverage for your liability over products and completed operations
General liability insurance for electrical contractors is available as a short-term policy, and can be used as a self-employed electrician insurance. With this policy, you can choose to get coverage for bodily injuries, property damage, and other covered perils for only hours, weeks, days, or months. Short-term general liability insurance gives $1 million-$2 million coverage for each claim.
Aside from bodily injuries or property damage, there are also cases where electrical contractors committed wrongful acts, misdeed, or oversights while working. Here are some examples:
A client filed a claim against a Los Angeles electrical contractor who left without finishing the project after receiving 90% of his payment
A Niagara Falls electrical contractor was fined $537,500 for faulty electrical wiring that resulted in the death of a client
You can add an errors and omissions policy to a specialized electrician and electrical contractors insurance package. Errors and omissions insurance, which you can also find in solar contractor insurance bundles, provides $1 million-$5 million you can use to cover settlements, defense costs, and fines or penalties if a claim is filed for:
Breach of contract
Faulty electrical wiring and use of defective materials
Failure to deliver services
Failure to meet deadlines
Similar to a paving contractor, handyman, gas engineer, CCTV installer, fire alarm installer, tiling contractor, or any other contractor, you can’t work without tools and equipment. Electrical tools and equipment aren’t cheap as they might cost $5,000 or more.
Get tools and equipment insurance to cover drills, plier sets, and other tools and equipment for electrical work. This electrical insurance cover grants protection when your implements get lost or damaged due to:
Tools and equipment insurance is available as a stand-alone policy that grants $10,000-$25,000 you can use to replace rented and owned electrical tools and equipment. You can increase the coverage up to $100,000 at an additional cost.
Similar to electrical engineers, you can also get tools and equipment insurance as a floater to a general liability policy. However, coverage is very minimal, and you only get $2,500-$5,000.
You use a commercial vehicle to go to project sites and haul equipment for electrical work. Because of this, you might need commercial auto insurance.
Commercial auto insurance grants protection while you’re using a vehicle for business purposes. This business insurance for electricians will :
Provide $25,000 minimum coverage for the medical treatment of third parties who got involved in an accident you caused
Provide $15,000 minimum coverage for properties you damaged in a vehicular accident
Cover the repair or replacement of parts as well as labor costs if your vehicle gets damaged due to collision, fire, theft, vandalism, and other covered perils
Provide $30-$90 reimbursement for vehicle rental expenses and public transportation costs while your car is being repaired
Provide $25,000 coverage for your medical treatment and $50,000 for your property damage if you get involved in an accident that an uninsured/underinsured driver caused
You can add a commercial property policy to electrical company insurance if you own, rent, or lease a dedicated commercial building, a condo, or a commercial space.
Commercial property insurance allows you to recover reconstruction or building repair costs. This electrical business insurance will reimburse losses if your condo, building, or commercial space gets damaged or destroyed by:
The limits of commercial property insurance vary. But to give you actual figures, the commercial property insurance for small-time electrical contractors grants $15,000-$500,000 replacement cost coverage.
By the way, commercial property insurance also covers the electrical tools and equipment that get lost or damaged while on the premises of your building, condo, or commercial space.
Commercial property insurance doesn’t cover properties in transit. This is why it’s a good idea to get inland marine insurance as an electrical contractor. Inland marine insurance will reimburse your losses when:
Electrical tools and equipment get damaged or destroyed after you get involved in a car accident
Materials for electrical work get lost or damaged due to the negligence of the shipping carrier
Materials and equipment for an electrical project got lost during transit due to theft, vandalism, malicious mischief, or mysterious disappearance
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Electrical work is perilous. There are many incidents where electricians experienced an accident and sustained injuries or even died. Here are some examples:
An electrician,who was working at a construction site in Adelaide,died after falling into an electrical pit
An electrician working for a Colorado power company got shocked and sustained heavy injuries while working on a power line
A 40-year old electrician died after getting electrocuted while installing a lighting for a Mexican restaurant in Melbourne
Consider getting workers' compensation insurance to cover costs if you or an employee gets injured at work. Workers' compensation insurance covers the following costs:
Surgeries, EMT service fees, and other expenses for medical treatment
Hospital bills such as room, food, nursing, etc.
Rehabilitation and retraining
Funeral expenses and allowance to dependents
The worker's compensation insurance for electrical contractors comes with employment practices liability insurance. Employment practices liability insurance takes care of settlements, defense costs, and awards if an employee sues you after experiencing a workplace accident.
Employer’s liability insurance provides a minimum $100,000 for each employee injury by accident, $500,000 for each employee injury by disease, and $500,000 for all claims filed by employees.
Employment practices liability insurance provides $300,000-$1 million you can use to pay settlements, defense costs, and court judgments if an employee sues you for failing to promote, wrongful termination, discrimination, sexual harassment, negligent supervision, and retaliation. Most EPLI policies cover claim from:
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 the 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 the electrical contractor insurance cost based on different factors. Namely, these are:
Number of employees
Of course, your choice of carrier also determines the electrician insurance cost. 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 Month||Cost per Year||Best for|
|NEXT||$15||$180||Best overall; Fastest general liability insurance for electrical contractors|
|CoverWallet||$18||$216||Electrical contractor insurance online quotes comparison|
|Tivly||$20||$240||Comparing electrician insurance quotes over the phone|
|Thimble||$23||$276||Short-term coverage for electricians|
|Hiscox||$37.50||$450||Electrician insurance with worldwide coverage|
|State Farm||$46||$552||Installation floater for electricians|
Always compare quotes to understand how much your premiums will cost. By comparing quotes, you get to see which electrical contractors insurance company provides coverage at a reasonable price. Start comparing quotes online by clicking the “Get Quotes” button on this page.
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Read the reviews below to know the pros, cons, and the average $1 million general liability insurance rate of the best carriers.
Get an online proof of insurance and send as a text message, email, or social media post
Fastest general liability insurance for electrical contractors
Great customer service and reputation
Issues an online proof of insurance instantly
Outstanding value for money
Bundle two or more insurance policies and get a 10% discount
Couldn’t find any
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 policies 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: Best overall; Fastest general liability insurance for electrical contractors
Average cost: $15 per month
Our rating: 10/10
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
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
Tivly 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 Tivly 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
ACORD 25 certificates 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.
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
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
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 business.
Best for: Installation floater for electricians
Average cost: $46 per month
Our rating: 7/10
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!