“The Safe-Keeping for Breakers + Fuses”: What to Know About Electrician Business Insurance

Being in business as an electrician poses some unique risks, and making sure that you are properly covered with insurance is required by law. The types of coverage an electrician needs vary for each unique situation. Some electricians may store all their business equipment in a vehicle that they leave parked overnight, and some may have their own commercial property where their items are a bit more secure. Some electricians choose to work completely alone, and some may have a crew of 10 employees or more.
Having the proper insurance policy is vital for electricians, as dealing with this unique type of service poses many risks. When things are going smoothly, electricians are the life blood of every job site and remodel, but you don’t want to be caught unprepared with insufficient coverage if anything goes wrong. Here are some of the basics that will point you in the right direction regarding different types of coverage in how they can benefit your electrician business.

Why Should Electricians be Insured?
Liability insurance is the basic layer of business insurance that electricians need to be in business. Professional liability insurance offers protection if you caused damage to your property or bodily injury while on the job. If boxes are wired incorrectly, they could cause damage to any home electronics, while that same error in a residence could injure a customer. For an electrician to secure their license, they must obtain liability insurance coverage at the minimum. Any customer who has done their research and is ready to entertain bids will look for business liability insurance as a must when seeking their preferred electrician.

What Does Business Electrician Insurance Cover?
Business insurance coverage can happen to be very broad, or very specific regarding the different services provided. The type of coverage varies by the type of policy, and electrician duties can pose many unique challenges that general contracting does not. Here are the specifics about each type of insurance policy that you’re required to carry for this type of work:

Business General Liability Insurance
This is the most basic business insurance protection type that is required by law. General liability coverage will protect the electrician who caused property damage or bodily harm to a client during an instant of professional negligence. In this type of work even the most seasoned professional must make judgments very quickly, in the workplace conditions vary from month to month. This type of policy will also cover medical payments that fall under the claim of any injured customer.

Commercial Property Insurance:
This is the type of coverage that would be required for an electrician who stores equipment at a rented space, it would also include his furniture along with other office fixtures. This type of coverage is required in Missouri if the electrician keeps any other business tools on personal property such as a garage or Quonset Hut behind a residence. A standard homeowners policy usually won’t cover commercial property, but in some instances, there are extra riders available to expand the original policy to provide coverage.

Business Interruption Insurance:
Business interruption insurance is a type of policy often compiled with an electrician’s general liability coverage. This type of disruption can be caused by a tornado or a flood that makes it impossible to continue operating due to damage. This is a very important type of coverage as it will cover any interruption in sales or revenue caused by theft. It is crucial to be able to protect your business, your assets, and above all, lost wages that become impossible to pay out. This coverage can often exist as part of a bundle with general liability insurance.

Workers Compensation Insurance:
Worker’s compensation insurance is required for a business that has one or more employees other than yourself. This form of protection covers medical bills that would be accrued by said employees. They can protect your business from lawsuits, keep you compliant with state regulations, and cover employee illnesses and unforeseen workplace illnesses. It is important to note that these benefits are not available if your employee gets ill or injured outside of work, or for anyone who is under the influence when the accident occurs.

Commercial Auto Insurance:
Any successful electrician needs a vehicle for dispatch and service, and commercial auto insurance is needed even if the vehicle is also for personal use. If you happen to endure a car accident involving a personal vehicle that has work equipment inside of it, the personal policy will fail to cover damages to this property. When the schedule gets hectic and you become in a hurry, any electrician or contractor should not let an employee who is not listed on the policy drive a vehicle at all, even if it’s just a quick errand.

Other Types of Insurance Coverage for Electricians:
General liability insurance is the most common entry point for an electrical contractor to begin with. There are many other very useful add-ons that we can help you bundle at a discounted rate with, often in conjunction with a business owners policy as well.
Equipment Breakdown Insurance: Some business owners think that this type of insurance policy could include breakdowns that occur due to normal aging and wear and tear of your equipment. While it won’t protect you in those instances, it will provide coverage to repair or replace equipment that suddenly breaks down, and just as importantly cover income lost during this period.

Hired and Non-Owned Auto Insurance: If your business vehicle happens to be in the shop for repairs, it can be kind of difficult to situate a personally owned vehicle or client’s car to keep up with your workload. To make sure that you stay on top of a very busy and booked-up schedule, this type of coverage will provide you with a temporary rental.

Contractor’s Tool and Equipment Insurance: This is very useful for the days and months when you’re working on the job site and need to leave equipment there as the project progresses. It could be bulldozers, solar equipment, mounting tools, hand-held meters, or many other types of goods. This will protect you against any damage or effect, which has sadly been on the rise startlingly during the last decade.

Installation Floater: This type of coverage will protect the various types of equipment an electrician needs to complete their work period. It can include coverage for copper wires, electric boxes, conduits, and all the accessories that are needed to complete a fully-fledged electrical job.

Errors and Omissions Insurance: Some business owners think that errors and omissions insurance is the most important for professionals such as real estate agents, architects, and accountants. An electrician can still be prone to lawsuits if someone claims that your work is faulty, property is damaged, and any medical expenses are incurred. This type of coverage will also provide legal defense and other legal costs that you undergo because of a client or entity being unsatisfied with the finished product or work in progress in any way.

Surety Bond: Any contractor must be bonded insured before they can officially obtain a business license and start the journey of retaining satisfied clients. While not mandatory in all states, small business owners should consider getting a surety bond that acts as a solid guarantee that they will perform the work that they have promised.
Here at the Alexander Insurance Agency of Saint Charles, we understand that starting your electrical business was a goal that likely required years of hard work and determination. We can assist you with the best options for all types of coverage, and tell you from personal experience which plans will help you most in the long run. There’s nothing more satisfying than knowing you are protected and that your livelihood is intact, with many more happy years at the helm of your circuit-breaking brainchild!


Navigating Through Uncertain Events With Business Income Insurance 

When you have committed to running your own business, you’re responsible for your own financial health in many more ways than an employee. If your business does have employees, you as the owner will likely be responsible for other workers’ financial health if a variety of events were to ever happen during operation. Due to this responsibility, it is imperative to choose the right kind of insurance to protect your business. 

Must-Have Coverage for Business Owners

From a bustling restaurant to a busy accounting practice, it’s crucial to make sure that you have business interruption insurance. Also known as contingent business interruption insurance or business income insurance, it will provide protection if your company can’t stay open due to the events of a covered loss. Fire is covered, with a payout for equipment and damaged structure being the motive for obtaining it. Since you can’t have your doors open while rebuilding, it is impossible to earn income during that interval. 

This type of coverage assists with losses that result from the interruption of normal operations. Here are some of the incidents that are thankfully covered:

  • The income you lose if you are forced to close.
  • Employee payroll for those not able to work if your business is temporarily shut down.
  • Lease and mortgage payments that can’t be paid due to interrupted income.
  • Building restoration if you must change locations entirely. 
  • Costs to re-train employees on regulatory procedures if operations are suspended or interrupted. 

The Crystal Ball’s Absence: The Need for Business Interruption Insurance 

Some months provide more natural disasters than others. There are plenty of AI entities that are working hard on predicting the future, but for now, it is complicated to know if a game-changing event is on the horizon. It is hard work building a successful business from scratch, and even harder to get through challenges such as natural disasters once they occur. 

If a tree falls on your roof, insurance will cover your lost income while you are undergoing vital restoration. You will also be covered for a government-mandated road closure or other civil authority element that will temporarily shut down your company. The restoration period of interruption coverage is the length of time that the ability to generate income is lost. There is usually a 48 to 72-hour waiting period before your policy kicks in to handle the income coverage.

How Much Does Business Interruption Insurance Cost?

Here are some of the deciding factors that influence how much your coverage will cost:

  • What type of industry you serve
  • How many employees you have
  • The amount of desired coverage 

Costs can vary depending on what city you are in, and the various risks of covered loss or sudden peril. If you live in an area that is prone to wildfires, the cost for this type of coverage can increase. Areas prone to natural disasters such as hurricanes will see you paying much more than predominantly landlocked states such as Missouri. 

Items Excluded From Business Interruption Insurance:

Here are some of the things that this type of coverage won’t assist with:

  • Broken items impacted during the covered incident.
  • Flood or earthquake damage, which requires a separate policy.
  • Undocumented income that is not listed on your official record of finances
  • Utilities, since they are frequently not on after a covered event occurs. 
  • Communicable diseases that could disrupt daily operations.

If the unexpected occurs, you can rely on us at Alexander Insurance to assure that you have what you need to operate!


The Fine Points of A Less Lengthy Commitment: 6 Month Car Insurance

Once you have a shiny new (or pre-owned) car, one of the essential steps to getting on the road safely is selecting the right type of car insurance. Many drivers we talk to are not always aware that you can choose a policy that needs to be renewed annually or semi-annually, and there are different elements to consider with either type. You’ll feel confident knowing you are fully-covered for the challenges of everyday driving, and that a live agent will be on the line courtesy of us here at Alexander Insurance to assist you if needed. 

6th Month Car Insurance 101:

As you are shopping in person or online for the ideal car insurance policy, insurance companies will give you a quote for a six-month period. One of the reasons that this is beneficial for the provider is that after a six-month period there is a chance to re-evaluate your risk level, any incidents that occurred during the time period, and determine if the policy needs any adjustment at all. 

During this process, your provider also will look at the all-important statistics in your zip code to determine if your set rates are enough to kick in and aid with a claim’s payout. Lower claims may result in you benefiting from a lower rate when you renew, or a rebate if you are an existing policyholder. A six-month car insurance policy allows you as the driver some flexibility, but may result in your rates changing a bit more often. 

When you receive the quote for a six-month car insurance policy, some of the typical factors such as your age, gender, driving record, insurance history, location and vehicle type and type of coverage you are looking for all are deciding factors. When the six months is almost up, your provider will contact you with a renewal offer that could be more or less than your original policy depending on these variables. 

Decision Domain: Evaluating Pros and Cons

Before you pack your day or weekend bag, find the perfect tunes for the ride, and hit the ignition, making sure that you have the ideal coverage for your needs will give you the confidence to get behind the wheel and assault your hectic to-do list. Here are a few of the pros and cons to keep in mind when you are getting ready to make the choice on a policy that is ideal for your driving habits and lifestyle

Pros of a 6-Month Auto Policy:

  • The Flexible Option: Since these types of policies are renewed more often, they tend to offer some much-appreciated breathing room. If you have a past ticket that has finally fallen off your record, you will see savings almost immediately.
  • Navigating Your Needs List: if you expect the items you need from a driver’s policy to be changing frequently, you will enjoy the chance to look at things every six months and closely examine various changes that could benefit you and save you money.
  • The Appeal of Greener Grass: If you choose an auto insurance policy with just this 6-month term, you can switch companies a bit easier if you are unsatisfied. The 6-month policy allows you to not be situated for the entire year if issues arise that cause you to be on the hunt once again for better coverage. 

Cons of a 6-Month Auto Policy:

  • Potential For Sudden Increase: the purchase of a 12-month policy allows you to lock in the rate for that duration, but you could face a rate increase sooner with the 6-month option. The good news is that if you don’t get any tickets you could forge ahead with the same favorable rate.
  • Absent-Minded Syndrome: With a policy spanning a bit shorter of a time period, you could be more likely to accidentally forget when you have a renewal date or miss a payment. No need to worry! At Alexander Insurance we’ll contact you to give you a virtual sticky note when life gets demanding.
  • The Discount Shuffle: if you lose the potential to retain a discount after your policy renews, a 6-month policy means that you could miss out a bit sooner. Locking in rates is always advantageous, but if you are working a temporary job or just don’t know how long you’ll stick around, 6-month rates can be very ideal. 

Here at Alexander Insurance Agency of St Charles, we are constantly doing in-depth research to assure that your coverage fits your needs perfectly. After you make the choice to have us as your insurance experts, we guarantee prompt service, longstanding satisfaction, and options to go above and beyond your expectations! 


Viable Protection in Light of Variants: Options For Business Interruption Insurance

As various types of business are seeing drastic improvements this summer compared to last, there has been much cause for celebration. It always feels great to look at monthly reports, see things ticking upward, and sense true stability during a long-awaited resurgence. As various entities take a look back at the year behind us, there are many questions about the potential for protection against loss if they find themselves unable to operate in the future.

While you are taking a close look at different types of Business Interruption Insurance, important questions should be asked about the coverage of financial loss if you find yourself in a situation where it is not possible to keep the doors open and checkouts humming. This ultimately depends on what the terms of the policy are, and how they are interpreted by the courts. Business Interruption Insurance is now widely considered a routine practice, as the future could remain uncertain.

What Exactly Can You Count on Being Covered?

This very unique type of insurance policy can help a business remain afloat if it is forced to temporarily cease operating. They provide income replacement that you can apply to day-to-day operating expenses and overhead costs until the time comes to begin operating again. Currently, around 40% of business owners hold some form of this coverage. Typical candidates for this type of policy are usually businesses that average around 100 employees or less, and about $5 million in annual revenue. 

What an owner finding themselves under sudden duress can expect to see covered is property, liability, and business income. You will benefit from coverage that results in losses from damage to your business property, as well as personal liability claims against you if you temporarily are shut down. During these days of rising uncertainty, you can expect to be covered from damage caused by riots, vandalism, or civil unrest, with some policies not providing this benefit. 

When a Pandemic Comes Into Play:

Last year when the entire world unexpectedly dealt with the arrival of the COVID-19 virus, more than half of businesses were not expected to be able to bounce back and open their doors again. It’s important to note that your business interruption insurance will only cover the past year’s losses (caused by the virus) if your policy specifically lists coverage for pandemics.

Now is the time to set up a detailed review of your policy holdings with Alexander Insurance. We can also provide information about whether or not your state has legislation that will retroactively apply coverage for the period during which your business was affected, even if it was a government-mandated shutdown. Here is where the food and hospitality industries are particularly vulnerable and could suffer at a moment’s notice. If you are covered, the next step involves providing details about the extent of your losses, along with documents that clearly provide a snapshot of how much you lost due to being shut down. 

Bring in The Experts For The Final Word:

If you have not already done so, now could be an opportune time to consider Business Interruption Insurance. All of us at Alexander Insurance Agency of St. Charles can keep you updated frequently on legislative changes, and review your current policies to see if you will be prepared if recovery from the pandemic takes a few steps back. When it comes to profit loss decisions, it can affect your ability to triumphantly open your doors once again, and that’s why we are here for you: scrutinizing every detail will allow you to be confident in the utmost even during uncertainty!