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What Type of Insurance Do Electricians Need?

To legally work in the state, an electrician must be licensed and regularly take continuing education courses as specified in the program rules. An Electrical Contractor, Electrical Sign Contractor, and Residential Appliance Installer Contractor License require general liability coverage of at least $300,000 per occurrence, combined for property damage and bodily injury, $300,000 aggregate for products and completed operations, and $600,000 aggregate. The aggregate limit is the total amount the policy will pay for damage and bodily injury. What we usually offer is $1,000,000 each occurrence and $2,000,000 aggregate as it is the standard limit of insurance and this is the limit that will be required when you work for a General Contractor.

General Liability Insurance Coverage:

The GL policy for electricians covers the business liability to third parties for negligence and errors in providing services that result in loss caused by occurrences during the policy period. An occurrence means an accident, including continuous or repeated exposure to substantially the same general harmful conditions that begin during the policy period. It also includes by an error by the business that is unintentional harm or damage.

Coverage A: Bodily Insurance and Property Damage Liability

The insurance company will pay for the damaged the electrician is legally obligated to pay because of bodily injury or property damage to which the coverage applies. The insurance company has the right to defend the electrician against any lawsuit seeking those damages for covered cause of losses. The insurance company usually investigates any filed claim against the electrician and his business so the insurance company has the discretion to settle claims before it goes further to a more expensive lawsuit.

For the loss to be covered, the bodily injury or property damage should have taken place in the coverage territory during the policy period and the insured has no prior knowledge of the claim before starting the policy. The damages because of bodily injury include damages claimed by any person or organization against the electrician for care, loss of services or death resulting at any time from the bodily injury.

Coverage B: Personal and Advertising Injury Liability

The insurance company will pay for those sums the electrician becomes legally obligated to pay because of personal and advertising injury. It usually includes lawsuit or claims related to invasion of privacy, copyright infringement, libel, and slander. Common exclusions under this coverage are intentional violation of the third party's rights, criminal acts, breach of contract, and wrong description of prices.

Coverage C: Medical Payments

The insurance company will pay for medical expenses for bodily injury caused by an accident on the electrician’s business premises including the jobsite of the electrician. The accident should have taken place in the covered territory and during the policy period. The medical expenses should have been incurred and reported within one year of the date of the accident and the injured person submits to examination at the expense of the insurance company by their chosen physician if required. The limit will pay for first aid administered at the time of the accident, necessary medical, surgical, X-ray and dental services. It will also pay for prosthetic devices and necessary ambulance, hospital, professional nursing and funeral services.

How Much Does Electrician Insurance Cost?

The cost of a commercial general liability policy can range from $500.00 on the low end for a sole proprietor with no employees in a low-risk industry or location to over $30,000.00 for multi-million-dollar coverage for a new construction builder in certain areas. The general liability insurance cost for an electrician depends on the size of the business, the number of employees, amount of subcontracting cost, type of projects the electrician usually deals with and history of claims for the past three years. An owner operated electrical business should not exceed one thousand dollars a year in premium.

We put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (832) 843-2888. You can also request a free quote by clicking the one below.


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