What Coverage Do You Need for Your Electrical Business? 

Operating an electrical business demands more than just technical expertise. It also calls for strong protection against potential risks that could affect your operations, finances and reputation. Whether you’re working independently or leading a team, securing the right insurance coverage can be crucial for protecting your business financially and ensuring compliance with legal and client expectations.

Insurance for Electricians

The following are common coverage considerations for electricians:

• General liability insurance—This is often considered the foundation of any electrician’s insurance plan. General liability can help cover the cost of third-party bodily injury, property damage and legal fees if you’re sued. For example, if a client trips over your equipment or you accidentally damage a customer’s property during a job, this policy may help cover the costs.

• Professional liability insurance—Also known as errors and omissions insurance, professional liability insurance can help financially protect you if a client claims your work was faulty. Electrical work mistakes can lead to serious consequences. This coverage may help defend your business against negligence claims, even if the accusations are unfounded.

• Workers’ compensation insurance—If you have employees, most states require workers’ compensation insurance; however, there may be exceptions for independent contractors. It can help cover medical expenses and lost wages if an employee is injured on the job. Electrical work involves physical labor and exposure to hazards, making this coverage critical for protecting your team and complying with applicable labor laws.

• Commercial auto insurance—If you use vehicles for transporting tools, equipment or staff, personal auto insurance typically won’t suffice. Commercial auto insurance can be essential for covering expenses related to accidents, theft, or damage involving vehicles used for business purposes.

• Tools and equipment coverage—Your tools are vital to your work. This coverage can help reimburse your business for theft, loss or damage to your equipment, whether on-site, in transit or stored. It’s often added as a rider to a general liability or property policy.

Learn More

Choosing the right insurance coverage isn’t just about meeting legal requirements; it’s about protecting your livelihood. For specialized business insurance near you, contact Craddock Insurance Services.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.