Electrical Contractors Insurance Cost and Coverage 2021
By Space Coast Daily // April 28, 2021
Reportedly, the 5-year survival rate for construction businesses is 36.4%. In the construction industry, the probability that a start-up company will last longer than 5 years is 36.4%.
To prosper in this field, an owner needs to have a good grip on projects management, a strategy in place for avoidable risks, and modern marketing and sales approach.
If you are an electrician or electrical contractor, then you should be well aware of the risks that come along with your professional services. In this article we will go over some of the many reasons why every electrical contractor needs insurance even more this 2021 in order to run their business smoothly, without fear of any legal and reputational repercussions down the line.
Insurance is not only essential but also required in running a business and protecting your assets in the event that something goes terribly wrong. It is equally as important for small businesses and contractors to prepare for consequences if they were no longer able to work due to work-related illness or injury. Having a contingency plan in place will give security and peace of mind not only for you but also your company and employees.
What dangers do electrical contractors have to deal with?
Electricians and Electrical Contractors are exposed to a lot of hazards on the job. From electrical wires that pose a risk of electric shock, to contact with electricity or live power lines, these professionals need insurance more than just anyone else. Running an electrical contractor business comes with a number of challenges, including:
Electronic parts getting destroyed as a result of floods. You’ll have to pay for restocking inventory out of your own pocket if you don’t have a Business Owner’s Policy.
Employees’ illness or accident due to a work-related incident, for which you will be held liable for treatment and recovery expenses as well as missed wages if you don’t have a Workers Compensation Insurance.
Failure of a service provided to the client, leading to the damage of their personal property. You’ll be liable for all court expenses, legal fees, and settlements related to the claim if the customer sues if you do not have a general liability policy.
What is Electrician’s General Liability Insurance?
Electricians Insurance is a package of policies intended to be the company’s comprehensive protection policy. However, the topmost important policy of them all is the liability insurance. This policy covers bodily injury and property damages to third parties. The following is a list of commonly covered claims:
Damage to property
Electricians often work with other people’s property, and if we accidentally cut a hole in the wrong place or break something that isn’t ours, it can be very costly. A general liability insurance coverage should help cover repair bills like these, so you don’t have to worry about them yourself.
Advertising injury arise when a third-party claims that something about your company’s advertising caused them harm. This includes dignitary injuries such as defamation, libel, and invasion of privacy, and etc. They may accuse you of copyright infringement or patent infringement, or they may believe you have besmirched their name or brand in some way. General liability insurance for electricians protects you from issues like this by covering legal costs, settlements, and judgments as appropriate.
Bodily injury is when physical harm comes to someone. If they say they were injured as a result of your business or were actually harmed, you will be held liable for any medical expenses that occur. If you are sued by another person, there may be additional fines and fees that you’re required to pay. Electrician liability insurance can pay for everything from emergency medical care to follow up and associated treatments.
General liability coverage for electricians may be beneficial in the event of an accident. When someone says they were hurt on your premises, at your workplace, or as a result of something you did, it can help you pay for medical expenses and escape a lawsuit and more costly settlements. General liability insurance will protect them and help you prevent more serious issues.
According to Contractorsliablity.com, below is an estimated average cost of an electrician’s liability insurance per state per insurance provider.
Electrician General Liability Rates for $1 Million/$2 Million Policy
There’s no such thing as too much protection when it comes to being an electrician and offering your services. General liability insurance is required by law in the vast majority of states, and it might be better to think of it as an investment rather than an expense.