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Electrical contractors insurance. What is electrical contractors insurance?

Introduction to electrical contractors insurance

Electrical contractors play a key role in our infrastructure, ensuring that homes and businesses have the necessary energy that they need to function.

Some people who are drawn to the electrician profession opt to work with an existing business, while others decide to set off on their own as electrical contractors.

Whichever role you consider taking or have, understanding the operating costs of running an electrical contracting business is essential.

In this article, we will examine insurance for electrical contractors. Electrical contractors insurance neutralizes and mitigates the financial burdens potential risks pose to a business.

Whether you’re working on a major construction project or a minor one, insurance for electrical contractors protects businesses like yours so you can focus on doing your job.

Legal claims are expensive to deal with and with your reputation at stake, claims can cost you your future clients. So what is electrical contractors insurance and what does it cover?

To help you find out, in our article we will examine the following topics:

  • What is electrical contractors insurance?
  • What types of insurance do electricians need?
  1. General liability insurance.
  2. Commercial auto.
  3. Professional liability insurance (E&O).
  4. Workers’ compensation insurance.
  5. Equipment insurance.
  6. Cyber insurance.
  7. Business Owners Policy (BOP).
  • Public liability insurance for electrical contractors.
  • Why electrician liability insurance is important?
  • Professional indemnity insurance for electrical contractors.
  • Workers’ compensation insurance for electrical contractors.
  • Equipment insurance for electrical contractors.
  • What professionals require electrical contractors insurance.
  • Bottom line.
  • Electrical contractors insurance cost.
  • Electrical contractors insurance quotes.
  1. Contractors insurance USA.
  2. Contractors insurance UK.
  3. Contractors insurance Cyprus.

What is electrical contractors insurance

To understand what electrical contractors insurance is, let’s first look at contractors insurance.

Contractors insurance is an umbrella term that encompasses various business insurance coverages required from a contractor.

In this case, and specifically suited to the trade, electrical contractors insurance is coverage that protects electricians, contracted labor and contractual businesses.

In short, electrical contractor insurance protects against potentially devastating financial losses caused by common risks related to the trade.

The right insurance coverage ensures protection for your business and your employees, so it’s essential to understand the types of insurance electricians need.

What types of insurance do electricians need?

Whether you run your own electrical business, you’re a self-employed contractor, or an electrical sub-contractor, some essential insurance policies are listed below.

General liability insurance

For lawsuits or other financial liabilities resulting from at-fault accidents such as a fire.

Commercial auto

If a business vehicle is used to transport the tradesperson, equipment and other tools.

Professional liability insurance (E&O)

Protects against faulty workmanship claims and those not covered by general liability.

Workers’ compensation insurance (if you have employees)

To protect employees who become ill or injured while on the job and the resulting financial loss.

Other policies which are good to have are listed below:

  • Equipment insurance
  • Cyber insurance
  • Business Owners Policy (BOP)

Public liability insurance for electrical contractors

Public liability insurance coverage protects your business from the public and against third-party claims.

This coverage will protect you if someone gets injured by accident, or if their property is damaged as a result of your electrical business activities.

So, whether you’re working from your own business premises, on the move or off-site, public liability insurance has you covered.

What’s covered by public liability insurance?

Life is unpredictable, and that’s why public liability insurance covers a wide range of possible circumstances that might result in a claim. Not every claim will be covered, so it’s always best to check the small print.

Why electrician liability insurance is important

Let’s consider a scenario as an example. If someone makes a claim against you for an injury they sustained on your business premises, or for damage caused to their home by your business, public electrician liability insurance covers the expenses for their compensation.

Public liability insurance for electrical contractors will also help cover the cost of any legal fees as a result of the case mentioned above.

Suppose your client’s property gets seriously damaged or broken beyond repair due to an accident caused by your business activity. In that case, public liability insurance may cover the cost of repairing or replacing the property.

Professional indemnity insurance for electrical contractors

Professional indemnity insurance and professional liability insurance are standard insurance policies for business’ who charge clients for their electrical services.

Professional liability insurance also goes by the name errors and omissions, that’s E&O for short. The names are sometimes used interchangeably, but may have dissimilar coverages.

Whatever name it goes by, this coverage protects your business from faulty workmanship claims and the resulting expenses that may arise.

Professional indemnity insurance is a separate coverage from a general liability policy as general liability doesn’t cover these kinds of legal claims.

Let’s look at an example to explain what E&O coverage can do for you.

Let’s say you were hired to install new lighting systems in a client’s home. A few weeks later, the client complains the lights aren’t working properly.

After contacting you to fix the problem and your attempts to do so, the client’s still not happy. He claims your crew failed to do your job correctly and used faulty components. He then hires another firm to correct the mistake and sues you, saying your work was at fault.

After several attempts to fix the faulty lights, you’re already out of pocket and now you’re facing a lawsuit. If you’re found at fault, you’re looking at legal fees, court costs, and compensation expenses.

A professional liability insurance policy can cover your legal costs and compensation.

Even if there are no grounds for the claim that your work was faulty, it’s a beneficial insurance policy to have, even if you don’t end up getting sued.

Workers’ compensation insurance for electrical contractors

Workers’ compensation insurance, or workers’ comp insurance for short, is a requirement in most locations, even if you only have one employee.

Penalties for not having this protection in place for your many or few employees can be severe, so it’s always best to check your specific requirements.

It’s a beneficial policy to have also, as it protects you from workplace injuries and accidents that are a daily hazard in your line of work.

With these risks come the financial risks too, lawsuits arising from workplace injuries can be painful for any business owner.

If one of your employees is injured at work and needs medical treatment, plus some time off to recover, workers’ compensation insurance can cover medical bills and lost earnings.

Another benefit is, no matter who’s at fault, workers’ comp insurance will protect you from the costs involved in a lawsuit if the case goes to court.

Equipment insurance for electrical contractors

If you own electrical tools and equipment you use on-site, you should protect them with business personal property insurance.

For tradespeople, it’s unfortunate that tools go missing, get stolen or even damaged while working. If that happens and while you’re in the process of replacing them, you will face financial losses because you can’t work without your tools.

That’s where equipment insurance for electrical contractors, or business personal property insurance comes in handy. This insurance coverage protects your equipment from loss, theft, or damage – not only tools but mobiles and laptops too.

You can include this additional coverage to your general liability policy for extra peace of mind.

What professionals require electrical contractors insurance

Whether you’re working with low voltage or high voltage, industrial or institutional, inside wiring or traffic signalization, we know that electrical contractors offer a varied range of services.

Your insurance for electrical contractors policy should reflect that. In addition to the above, What professionals require electrical contractors insurance?

Contractors who perform the following electrical jobs will require electrical contractors insurance:

  • Lighting services.
  • General electrical.
  • Low voltage.
  • High voltage.
  • Fiber optic.
  • Electrical controls installation.

Bottom line

Electrical contractors insurance is vital for protecting your business from the financial strains of unexpected issues.

Hazardous events are part and parcel of the trade, therefore, it’s important to take the necessary steps to ensure the risks of running your business are taken care of.

With the right insurance coverage you will have the peace of mind to continue working confidently to focus on your tasks at hand.

If you’re considering insurance for electrical contractors coverage, it’s worthwhile to understand what affects policy costs to better understand your options.

Electrical contractors insurance cost

The price you’ll pay for electrical contractors insurance and customized policy packages varies across insurance providers.

However, overall, your insurance policy value and cost depend on factors such as:

  • The size of your firm.
  • Where you’re based.
  • The limits you choose.

Further to the above factors, there are some ways you can save money.

For example, your premium will be lower if you choose to pay a bigger deductible, i.e. the amount you contribute if there’s a claim. Just be sure you can reasonably afford that amount.

As for how much cover you’ll need, it’s always best to overestimate and consider the expenses for the worst-case scenario, then pick an affordable figure according to your budget.

If you need any advice about the above, you’re welcome to contact us for a simple quotation.

Pitsas Insurances has successfully worked with big construction companies for the past three decades. High quality and specialized services make up part of what we offer.

Electrical contractors insurance quotes

When considering what types of electrical insurance for contractors are needed for your business, it’s worth your time to receive various quotes to know your options.

The process will be easy and hassle-free with the following businesses. All will provide you with simple quotations while offering you a high quality service.

Electrical Contractors Insurance USA

For companies registered in USA you can receive quotation from Insurance Bee.

Electrical Contractors Insurance UK

For companies registered in UK you can receive quotation from AXA.

Electrical Contractors Insurance Cyprus

For companies registered in Cyprus you can receive quotation from Pitsas Insurances by completing the quotation.

With our straightforward quote process, it’s easier than it seems to get a quote online.

You’ll need to provide some details about your business, and it’s as simple as that. You’ll have a quote customized around your insurance needs.

Our team of insurance experts can work with your financial budget to help you secure customized electrical contractors insurance, auto insurance and more.

 

Pitsas Insurances

Paphos, Cyprus

01.11.2022


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