Insurance for electrical contractors. Since if you make a mistake or create an accident within your work environment, sparks can go off. It reduces the risk.

Legal disputes can be expensive, and when your reputation is at stake, it could cost you a customer or two. What kind of insurance for your business is required, and what does it cover? That is a great guide.

What Types of Insurance Get Required for Electricians?

No matter if you have an electrically-based business of a modest size or are self-employed or a sub-contractor for electrical work, specific policies are crucial:

  • General liability insurance
  • Insurance for professional liability
  • Workers’ Compensation Insurance

Also, there are other good to have

  • Insurance for equipment
  • Cyber insurance

Electricians Get Covered Under General Liability Insurance

You require general liability insurance if the answer is yes to any of the above questions. No matter how cautious you’re, accidents will happen.

What happens if a customer trips over your toolbox, fractures an arm, and requires hospitalization? Are you rewiring the customer’s home when you slip and knock over an expensive lamp, causing it to pieces? Or was one of your workers heard making a snarky comment about a customer that gets later reported to them, and they filed a lawsuit?

You’ll need to find the money to pay for the expenses. That includes paying for damages if the case gets taken to trial and you get located in the wrong.

But not if General Liability Insurance covers you for Electrical Contractors. This insurance protects your business from the expense of claims related to the following:

  • Injuries to another
  • Damage to the property of another
  • Personal injuries

It could cover medical expenses, repair or replacement costs, legal fees, and compensation even when there are no justifications for filing the case.

Specifically for Professional Liability Insurance for Electricians

Do you charge customers for the electrical services you provide?

You’ll require professional coverage for liability (or the occurrence of errors or omissions, as it’s also referred to). Your general liability insurance doesn’t cover legal actions. It shields your company from the costs of defective work-related claims.

Imagine you’re appointed to install a brand new lighting system at an office space. After a few months, the client complains that the lights aren’t functioning correctly. After several attempts at fixing the issue, she’s not satisfied. She says your staff should have put in the switches correctly and utilized substandard parts. Then, she hires a different firm to rectify the error and sues the company claiming your work was to blame.

After a few attempts to resolve the problem, you’re out of pocket. A lawsuit could cost you more legal costs, court, and compensation when you’re found guilty.

Suppose a customer claims that they made a mistake or that your work was not up to par. In that case, the professional liability insurance policy can cover your legal costs and compensate you even if there are no grounds to support the claim. You could get sued regardless of whether you committed an error in the first place, which is an excellent tool to have.

Workers Compensation Insurance

In all states, having workers’ compensation insurance is required by law. Even if you only have one employee, you should check your state’s requirements because the fines could be overly severe.

When you are at work, accidents can be commonplace. It’s an excellent policy to have. It helps you avoid the expense of workplace injuries that could be extremely difficult for a small business owner.

Suppose any employee is injured and requires medical attention and time off for recovery. In that case, workers’ compensation insurance will pay for medical bills and loss of earnings. In addition, should the matter go to court, regardless of the other party’s fault, will it safeguard you from the expenses associated with an action?

We’ve now provided the insurance you’ll need, but are there any other items you’d like to have?

Insurance for Equipment

Do you own electrical equipment and tools? Do you carry your tools on job sites and then use them on-site? Is the answer yes?

While you’re trying to come up with the funds to replace them, how do you do your job? Consider protecting your personal belongings with business insurance. Let’s face it; your equipment will likely be stolen, lost, or damaged in the field. You could even lose a customer in the time.

Personal property insurance for businesses protects your mobile equipment from theft, loss, or damage, including laptops and mobiles. It covers everything that moves within your office at home too. From your desk chair to potted plants.Handy huh? You can add it to your general liability insurance policy to get extra piece of mind.

Cyber Insurance

Do you transfer money online, perhaps to suppliers? Use email? Have an online presence?

Given that there are knowledgeable cybercriminals, you should purchase cyber insurance if you answered yes to any of them.

Money transfer and email fraud are on the rise. It’s no longer just an issue of hackers holding your site to ransom. If you’re a small company with less capital for robust security measures, it’s easy to be a victim.

Cyber insurance provides more than the financial backing to help you recover from an attack. You’ll be back to normal and up and running again quickly. You’ll also have all-hours technical assistance to handle it.

Insurance Costs for Electrical Contractors

The cost you have to pay for insurance differs between businesses. It gets based on factors such as:

  • The size and scope of the company
  • Where you’re based
  • The limit you decide to set

However, some ways can cut costs. Suppose you pay a higher deductible (the amount you’ll be contributing in the event of an insurance claim). In that case, your insurance premium will be less. Make sure that you pay the amount should it be required.

For how much protection you’ll require, it gets recommended to estimate it over. Consider the worst-case scenario, and then choose an amount you can afford.

Quotes for Business Insurance on Electrical Appliances

Do you need help determining the type of insurance you’ll need? There’s more information about electricians’ insurance on the internet on our site. Or call Commercial Insurance Ottawa at (613) 454-5640 or mail us at We’ll guide you through your options and quickly find the right insurance coverage for your business.