Working with electricity comes with inherent risks, whether you are a contractor at a large manufacturing facility or run a small business out of your garage. The simple truth is that the risks of the industry require notice. Protect yourself or your employees from tremendous out-of-pocket costs if an accident should occur.
Electrical contractor insurance has also been called electrician insurance. It’s a kind of small business insurance that you can tailor to your company’s specific needs.
- The average electrical contractor insurance cost per month
- The factors affecting the cost of electrical contractor insurance
- Ways to save on your electrical contractor insurance
- Who needs electrical contractor insurance?
- What does electrical contractor insurance cover?
The average electrical contractor insurance cost per month
The average cost of electrical contractor insurance is $48 per month, or $550 per year. That is for a general liability insurance policy only. This is also the most popular insurance policy for electrical contractors.
If you add more coverages that an electrician may need, the premiums will increase accordingly. Below is the table of average costs for different coverages for your reference.
|Electrical contractor insurance coverages||Average costs|
|General liability insurance||$48 per month|
|Commercial property insurance||$85 per month|
|Contractors tools and equipment||$35 per month|
|Workers comp insurance||$145 per month|
On average, the monthly cost of electrician insurance is around $313, or $3,780 per year, depending on the amount of coverage you select.
These are just the averages. Your rates will be different. Be sure to shop around with a few companies to compare several quotes before choosing the best and the cheapest one. Work with top broker like InsurePro, Simply Business, or CoverWallet is a good way to compare several quotes in one place easily.
General liability insurance cost for electricians
General liability insurance is a necessity regardless of your industry. This insurance is protection for third parties other than your employees. It covers bodily injury and property damage that occurs through the usual operation of your business. If a customer says that your wiring job caused a fire, your general liability insurance will pay for injuries, property damage, legal defense, or judgments against you.
The average cost of general liability insurance for electricians is $48 per month, or $550 per year.
Commercial property insurance cost for electrical contractors
Commercial property insurance covers precisely that, your property. This policy protects your physical business and your equipment. The policy typically covers everything from valuable papers to the building itself. Owned and leased equipment are both covered under one commercial property insurance policy.
The average cost of commercial property insurance for electrical contractors is $85 per month, or $1,020 per year
Business interruption insurance cost for electrical contractors
Sometimes issues require businesses to close temporarily. When that happens, you will suffer lost income. A business interruption policy helps to replace lost income from covered events such as wind damage, theft, or damaged inventory. Some companies call this kind of policy business income insurance.
The average cost of business interruption insurance for electricians is $30 per month, or $360 per year.
Learn more at the best business interruption insurance companies
Workers comp insurance cost for electricians
If you have employees, you must have workers comp insurance. It is legally required in 50 states, except Texas. Workers comp insurance pays for medical expenses, lost wages, disability benefits, and other related benefits when employees get injured or become sick while being at work. This is an important coverage and benefit for your employees.
Even you are not required to provide workers comp insurance for contractors, you should consider it as well.
The average cost of workers comp insurance for electricians is $145 per month, or $1,740 per year.
Other kinds of insurance
Other add-on policies can be quite beneficial when operating a small business. Some of them may be required in your state as well. Two of the most common add-ons needed are workers’ compensation and commercial auto insurance policies. You can also purchase policies that specifically cover your tools and equipment and the materials you will use in the performance of your work.
The factors affecting the cost of electrician insurance
Costs of your electrician insurance policy depend on various factors such as:
- How many employees you have. Workers’ compensation premiums vary with the number of employees working for you.
- Your coverage needs. The limits you select for your coverages affect your premiums. As a general rule, higher coverage limits also mean higher premium costs.
- Your previous claims history. Insurance companies use your prior claims history to help them calculate the risk of insuring you.
- Other factors. Some insurance companies account for your assets, where your business is located, how much property you have for the business, and your payroll size.
Ways to save on your electrical contractor insurance
Electrician insurance isn’t a cheap expenditure, but it’s necessary. Here are some ways to save on your electrician insurance policy.
- Bundle your policies. You will usually save money by bundling commercial policies together.
- Increase your deductibles, particularly on your commercial auto insurance.
- Pay your entire annual premium at one time. While a monthly payment may seem more manageable, they often come with a payment premium or convenience fee, so paying annually can save you money.
- Join a trade association. Some of them offer group discounts on workers’ compensation policies.
- Create and implement safety programs and procedures.
- Classify your workers with the correct job descriptions and make sure they only work in their classification to help save on workers’ compensation policies.
- Compare multiple quotes. Check with a top broker like InsurePro, Simply Business, or CoverWallet for a one-stop-shop method of comparing quotes
Who needs electrical contractor insurance?
Electricians work with live wires and active electrical circuits on a routine basis. Due to the amount of risk involved, insurance is necessary for electricians. Those who could benefit from having electrician insurance include those who work in the following sections of the electrical industry:
- High voltage
- Low voltage
- Fiber optic
- General electrical (including installation and basic repairs)
- Electrical controls installation
Electrician insurance is a must-have if you work with electricity in any capacity.
What does electrical contractor insurance cover?
An electrician insurance policy consists of more than one kind of small business insurance grouped together to protect against a variety of problems that could arise from the operation of the business. Your specific business operations dictate the kinds of coverage you need.
You can purchase a business owner’s policy from many insurance providers that includes three coverage types under one policy. Typically, buying a business owner’s policy is less expensive than purchasing the coverages separately. The following coverages are typically included in a business owner’s policy.
Best electrician insurance companies
Many insurance companies offer electrician insurance, which can make it confusing for you to find the best one for your business. We have done the research and here are the 6 best electrician insurance companies that we recommend for your considerations:
- InsurePro: Best for pay-per-day electrician insurance coverage
- Simply Business: Best for a simple process to find and buy affordable coverage
- CoverWallet: Best for comparing several quotes
- State Farm: Best if you prefer working with an agent
- Hiscox: Best for small electrical contracting businesses
- Thimble: Best for short-term electrician insurance coverage
Electricians work in a high-risk industry. The high-risk nature of their business means insurance coverage is even more important. The way policies are purchased depends partly on the insurance company providing the coverage. Electricians can purchase coverage in bundled business policies or as separate products.
Electrician insurance can be costly, but there are a few ways to save some money when purchasing these policies. Perhaps the easiest way to save money on purchasing an electrician insurance policy is to shop for multiple quotes before buying. Bundling policies into one business owner’s policy is also an excellent way to save money.