Growing an electrical business requires all knowledgeable hands-on deck, and it can be a daunting task to reach a profitable point. The hard work needed to succeed is enough to need a solid form of protection for your efforts, and going at this task uninsured can provide many harsh surprises. Insurance protects your workforce, along with other incidents that could rapidly set you back. 

Dealing with live power provides many unique hurdles, and the live parts along with the task at hand have seen many business owners encountering accidents and injury. Property damage can happen unexpectedly, and result in massive disagreements and lost time. Here are some of the elements that you will want covered under a policy while running an electrical business:

  • Accidental Injuries
  • Property damage
  • Workplace compensation
  • Company transport and equipment
  • Unintentional faults in construction or performance
  • Attorney fees

Why is a Range of Coverages so Crucial?

The grade of risks you’ll encounter in electrical work is quite evident. You can suffer damage to your crew, equipment, as well as your clients in a very bad situation. Even the most cautious business operators run into hazards that are difficult to control. After expanding your business, you may discover that your current coverage doesn’t prepare you for every incident. There’s a potential for environmentally unsafe situations, along with things that can take place while being dispatched quickly for emergencies. Here are some of the various electrical contractor’s insurance policies available:

  • Commercial general liability coverage
  • Worker’s compensation
  • Commercial auto
  • Business owner’s policy
  • Surety bonds
  • Umbrella insurance policy
  • Equipment & inland marine coverage

Commercial General Liability Insurance:

This type of coverage is for accidental injuries and property damage that could take place. General Liability is required in many locations to obtain a license, or when beginning a standard commercial lease job. A form of “gateway coverage” is a necessity that is a solid foundation for a safe day on the job.

Workers Compensation Insurance:

This type of policy will cover the urgent medical bills and payroll costs of anyone injured while working for your contracting company. Many states mandate this type of coverage for any electrical business, which is an excellent form of protection against lawsuits. In 2020 the U.S. Bureau of Labor found that there were 7,800 nonfatal work injuries for electrical contractors. While performing this kind of work, workers are prone to ergonomic injuries caused by very repetitive motions. 

Commercial Auto Insurance:

Working for a construction or electrical service company often sees employees traveling in company vehicles. If your employee happens to be at fault after a collision, it could turn out to be a very expensive mistake. This type of coverage will cover medical expenses after an unfortunate 3rd-party injury, and issues with theft or vandalism. 

Commercial Property Insurance:

This is a very crucial form of coverage that protects your physical place of business. This will cover you and your building if there is a random but very serious event such as fire or vandalism. Goods such as amp meters, screwdrivers, wire strippers, power tools, and batteries can go missing. Earthquakes and floods may not be covered by commercial property insurance. 

Business Owner’s Policy (BOP):

This type of policy effectively bundles commercial general liability insurance to cover personal injury or damage caused during the performance of a contracted job. It also bundles commercial property insurance which will cover the repairs and any losses of equipment at your place of business. A business owner’s policy is generally much more affordable than individual policies, and it provides a flexible option for coverage during your company’s preliminary growth phase.

Umbrella Liability Insurance:

If you undergo a civil suit judgment or any others that exceed the amount of your electrical contractor liability policy, an umbrella liability insurance policy assures that you aren’t in the red to cover additional costs. Umbrella liability insurance also provides extra coverage for commercial auto liability insurance, along with employers’ liability insurance. 

Surety Bonds:

Surety bonds aren’t quite the same as a policy for your electrical company, which provides insurance that a job meets professional standards. This is often a necessity for contractors seeking a license or permit and must be presented to your local municipality. Instead of a functioning policy, a surety bond provides a solid guarantee that the job will be done right, and that your client will be reimbursed for anything incomplete. 

What is Not Covered by Electrical Contractor Insurance?

Electrical contractor insurance covers many incidents that an electrical business will encounter. Here are some of the typical exclusions that will not be covered with your policy:

  • Earthquakes
  • Floods
  • War
  • Fallout from radiation
  • Government seizures

Choosing the Best Electric Insurance Policy and Provider:

You may be just searching for the basics and a minimum form of coverage or creating a plan for the future of steady or rapid growth. Just as it is with any financial commitment, it’s best to do research before you make the final decision. Here are some comprehensive steps to take while figuring out if an insurance provider is ideal for you:

  • Find out to what degree they are experienced with contractors’ insurance.
  • Do some investigating to see what the financial health of your provider is.  
  • Shop around to compare the grade of benefits and pricing.

Are you an electrical contractor in St. Charles looking for comprehensive insurance coverage that protects your business and assets? Our team at Alexander Insurance can make sure that you are not leaving your valuable business in a vulnerable and weakened state. As our city continues to grow exponentially, the need for development has exploded, and many individuals have chosen a career in electrician work. Don’t be “shocked” by unforeseen events and meet up with us to find adequate coverage for your business today!