Did you know that electricians rank #2 in best construction jobs and #5 in highest paying jobs without a degree? As one of the top careers out there, you might be considering becoming an electrician yourself.
Whether you are new to the business or a veteran, you need to know about electricians’ insurance requirements. Insurance can protect you, clients, and employees.
Keep reading to learn more about the basic coverages electricians should consider.
Electricians’ Insurance Requirements
Electricians’ insurance requirements depend on where you work or operate as a contractor. Despite the different regulations by state, most states make Worker’s Compensation insurance is necessary.
However, there are basic coverages that are recommended when working as an electrical contractor. The following five can protect you in the event of damage that occurs on the property, injuries to you or personnel, and theft:
1. General Liability
Most businesses, regardless of doing electrical work or not, have General Liability coverage because it covers third-party injuries on a job site. It can also protect against damage to a client’s property.
General Liability insurance is limited and typically capped. It won’t pay for work lost in an accident.
2. Professional Indemnity
Professional indemnity insurance is one of the most important types of insurance plans for electrical contractors. This insurance is reserved for those who offer professional advice and services as a business.
If you accidentally give poor advice, this insurance will cover you. For example, the plan pays for the financial loss experienced by a client because of your recommendation.
3. Commercial Property
Commercial property insurance is the proper coverage to have if you work on a physical job site or have an office space. You can customize your plan to cover office equipment and tools if needed.
If you were to get burglarized, commercial property insurance will cover the stolen items if you did customize your plan.
Although state requirements might not force you to have this type of electricians’ insurance, the landlord you rent a property from is likely to require it.
4. Worker’s Compensation
As mentioned before, Worker’s Compensation insurance is likely to be required no matter what state you work in. This insurance is purchased and used by businesses to protect employees that become sick or injured while on the job.
You can find this type of insurance policy among others at https://www.policysweet.com/insurance/electricians.
5. Commercial Auto
If you or another employee plan to drive a commercial vehicle, you’ll need commercial auto insurance. This minimum insurance plan can cover damage to company vehicles caused by theft, road accidents, and vandalism.
Do You Need Electricians’ Insurance?
Electricians’ insurance requirements differ by state, but you should always have some sort of policy to protect your business. Whether you work alone or hire employees, these coverages will be worth it.
You can find a packaged policy deal for affordable and bundled coverage. Consider the insurance options in this guide to decide which policies are right for you.
For more informative articles like this, check out the other posts on our website.
