“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!


Business Renter’s Insurance: A Comprehensive Guide to Protecting Your Dreams + Livelihood

Many companies choose to operate by renting space, which can be a quick and feasible solution to hit the ground running. Even though some owners may not enjoy the various limits this arrangement provides, it still allows you to generate revenue minus the persistent responsibility of a mortgage and taxes. If you are renting a storefront, shop, or office, your business renters’ insurance is one of the most sensible ways to help you protect it. 

Many small business owners can attain this type of coverage with a Business Owner’s Policy. Here you can bundle three very crucial types of coverage that are needed for the efficient and legal operation of many business types. They are as follows:

  • General liability insurance
  • Commercial property insurance
  • Business income insurance

Adequate + Protective Options for a Rental Property:

If you have decided to generate revenue with a rental property, a Business Owner’s Policy can offer you practical protection. A business renters insurance policy also includes commercial property insurance, adequately making provisions for commercial renters insurance coverage. Here are some of the events this type of coverage can protect you from:

  • Fire
  • Theft
  • Lawsuits
  • Loss of revenue post-property damage occurrence 

Commercial Property Insurance:

This form of coverage protects your space and the equipment used during daily operations. It is one of those coverage types that many new proprietors think they can do without at first, and if something bad does happen they stand to suffer extreme consequences! Here are the elements that you can expect to be protected:

  • Tools
  • Equipment such as Bobcats, Snowblowers
  • Inventory
  • Furniture
  • Personal property such as laptops
  • Valuables stored in your safe

If you undergo a fire, theft of property, or other covered loss at the location you are renting, this policy will help pay for replacements and repairs. It can be confusing to categorize which type of coverage will help you in different scenarios. If you have a flash flood that damages your business, it would be a commercial flood insurance policy offering your much-needed protection.

Business Income Insurance:

This is a very beneficial type of coverage that will help replace lost income if your structure is too damaged to carry on. Theft, fire, hail, and tornadoes are some of the factors that could be fierce enough to shut you down. Every season can offer up its own form of tough adversary that can take its toll on your ability to operate. While you are undergoing repairs such as roof replacement, flooring, painting, or framing, this coverage will provide you with the income you weren’t able to generate. These types of losses are what keep business owners awake at night, and this variety of coverage is a true anchor in times of dire need.

General Liability Insurance:

This type of coverage protects your business against those who claim that you impose property damage or bodily harm. It is a category of coverage to take seriously, as these types of claims have drastically risen over the last two decades. If a customer happens to slip and fall in your business and get hurt, this coverage will aid them in assistance with medical bills. The most common scenario owners imagine is someone slipping on ice or having an item fall from a shelf to cause damage, but there are many ways a customer can inadvertently get injured. 

What factors govern my Small Business Renters Insurance Rates?

There are many different types of small businesses out there: you may operate a delivery service, provide counseling, accounting, landscaping, or any other range of services. Even a traditional storefront with groceries and other goods still should be properly covered for events beyond their control. Here are the factors that an insurance company uses to determine what your cost will be each month:

  • Claims history
  • Location
  • How much your equipment on hand is worth

All of us here at the Alexander Insurance Agency of St Charles know you are working hard to keep your passion for your business alive and a steady customer flow! Even the smoothest of workdays can provide multiple surprises. We’ll assist you in finding what works best for you, and provide you with the peace of mind that no emergency event can leave you empty-handed. To learn more about your options for business renters’ insurance, contact us today!