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How Much Does Electrical Contractor General Liability Insurance Cost?

Any contractor operates in a high risk environment. Electrical contractors however, face even further hazards as electricity is invisible. Live wires and electrical shock are some of the first issues that come to mind; although, other potential for injury is addressed on a daily basis including: falls, MSDs or musculoskeletal disorders, back troubles, travel related accidents, or slipping on the jobsite.

Protect Yourself With Electrical Contractor General Liability Insurance

It is vital to have thorough coverage with a comprehensive general liability insurance plan to ensure that you and your crew are properly covered in the event that anything unfortunate happens. Lawsuits may arise over poor workmanship or facing an injury on the job. Future job security for your company can sadly become null and void if you end up going to court and are not properly insured. Protect yourself and your assets in the event that you are sued for property damage or personal injury.

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Sample Quotes for General Liability Insurance

Understand that your specific premiums will vary depending on numerous factors including: type of work (residential, commercial or industrial), where you reside (rates vary significantly due to where you live) and your a age. General liability insurance will protect you and your business in the event that any lawsuit occurs. Damages and legal expenses will covered if you have adequate coverage and lose the case in court.

General Contractor Premium Example

Depending on your electrical contracting specialty; estimate to spend $390 to $1400 USD annually on a median policy. This amount would provide you with a per claim limit in the range of $100,000 with a $200,000 policy limit. In this scenario, your median policy deductible would be approximately $1000. It is recommended that Electricians and general electrical contractors are insured for a minimum of 2 million; however, it is common for some larger companies and commercial contractors to seek coverage up to 20 million.

Unforeseen Circumstances

No one wants the unexpected to occur or injury or damages to occur. Construction sites are commonly under flux for months. Protecting the individuals who may wander into the work zone after hours, small children passing the site are common risk factors. Many residential electrical contractors complete the wiring for hot tubs, lighting, renovations and providing electricity to out buildings such as barns, shops and garages. Protecting homeowners, staff and complete strangers from potential risks associated with your work is an integral part of any successful contractor.

General liability insurance protects anyone from tripping over your extension cords, falling into holes and basic injuries along with more severe electricity related problems. In the event that a faulty connection sparks a fire and damages the property, adequate insurance would cover the damages.

Great Insurance Coverage Equals Better Bids

Be prepared to not even be considered for work if your general liability insurance is less than spectacular. In this day and age; everyone needs to be accountable. Companies and individuals request that electrical contractors provide proof of insurance before they award any job simply to protect everyone involved. You will be turned down and not even considered if you do not have sufficient coverage.

Realistic Quotes

Be honest when you are submitting information for quotes. Experience, age and type of work can all be disputed in the event of a claim and this can leave you high and dry. Trying to cut costs now can leave you uninsured later. Be sure to review your coverage as your company grows and expands. Many contractors review their stats on an annual basis to ensure they are not over or under insured. Industry rates may change and your staff may expand or diminish as you decide to specialize or downsize closer to retirement. Either way, providing a reputable insurance broker with all the pertinent facts regarding your electrical contracting business will help them navigate your best options.

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Author: Ashley Smith


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