Working with electrical systems exposes electrical contractors to personal injury risks due to exposure to live wires and active circuits. Electrocution is a leading cause of fatalities and injuries in the construction sector, especially among electricians. Additionally, electrical contractors often work on specialized equipment worth over a million dollars. Electrical contracting businesses are therefore obliged to get electrical contractor insurance that adequately protects their operations and employees.
Here is a detailed primer on electrical contractor insurance.
Coverage Options Available Under Electrical Contractor Insurance
In many states, contractors are required to carry electricians’ liability insurance before they undertake any electrical work. However, even when not legally required, conducting any kind of electrical work without liability coverage is dangerous as potential accidents and resulting liabilities can financially devastate your business.
The coverage options provided by electrical contractor insurance vary for different insurers. Nonetheless, some common coverage options include:
- General Liability Insurance – It covers third-party bodily injury and property damage resulting from the contractor’s electrical work. For instance, if you knock down your client’s expensive vase while installing a sub-panel, this liability coverage will kick in and cover the damage.
- Workers Compensation – If an employee gets injured on the job, workers comp covers medical expenses, therapy, and the injured employee’s lost wages. It can also cover death benefits if the injuries are fatal.
- Professional Liability Insurance – It covers the legal costs resulting from claims associated with your professional services. If a customer’s expensive appliance gets damaged due to your faulty wiring services, they can sue you. In such instances, this coverage will kick in and cover your legal fees and any associated settlements or judgment.
- Commercial Auto Insurance – Covers vehicles owned by your business or personal vehicles used for commercial purposes, including those used to transport equipment, materials, and employees.
While you may not need commercial auto insurance, depending on the nature of your operations, the other three policies- general liability, workers comp, and professional liability- are vital for protecting your business and its employees.
Contractor Umbrella Insurance for Extended Coverage
While the above stated policies typically cover fees and damages up to $1 million, electrical contractors often handle specialized equipment worth millions of dollars and are paid significant amounts in professional fees. Besides, work-related accidents can lead to long-term disabilities, and the associated medical costs can exceed a million dollars, even for small contracts.
Contractor umbrella insurance provides liability coverage over and above your underlying insurance policies, including workers’ compensation, professional liability, and general liability. It extends your liability coverage limit to over a million dollars and thus ensures your business has adequate liability protection.
What Is Comprehensive Insurance?
Comprehensive insurance combines electrical insurance with umbrella insurance. Electrical contractor insurance protects your business and your employees, and it’s required in most cases before you undertake electrical work. An umbrella policy extends the liability coverage limit of an electrical contractor insurance policy.
How Artisan Insurance Solutions Can Help
Electrical contractors face numerous unique risk exposures. They handle costly equipment and are susceptible to severe bodily injuries. At Artisan Insurance Solutions, we can help you get affordable and customized electrical contractor insurance coverage. Contact us today to learn more!