Electrician insurance is generally required for performing electrical work—whether you’re using a screwdriver or an excavator. Insurance is a must, but the process of purchasing it can be confusing and time-consuming. While most jurisdictions require liability insurance, some also mandate workers’ compensation coverage. If you are an independent contractor, you will generally be required to obtain both forms of insurance.
Electricians are responsible for the safety of their employees and the general public, which is why many jurisdictions require them to carry liability insurance. General liability policies are often written specifically for small business owners offering coverage against accidents on the job. Liability issues also extend to employees, which is why many jurisdictions require workers’ compensation coverage. Either way, you are responsible for protecting yourself regarding liability insurance. You should purchase the highest limits available.
Factors To Consider When Purchasing Electrician Insurance:
- Most general liability policies cover personal injury caused by negligence but not property damage.
- Personal injury coverage is essential because it covers you against lawsuits arising from accidents on the job.
- Property damage is typically only covered in the event of a natural disaster or a fire.
- Commercial liability insurance will protect you from lawsuits, but this type of policy does not cover injury to employees or contractors.
- Workers’ compensation insurance covers both employee and contractor injuries.
Typically, an electrician will purchase general liability and workers’ compensation insurance. Being aware of the differences between the two forms of policy will provide more information when selecting an insurance company. For more information, check out this AXA policy.
Electrician insurance can be crucial to business owners and residential homeowners. The best policy will include the following:
- Coverage against property loss and liability
- Coverage against workers compensation
- Equipment breakdown coverage (covers all your electrical equipment)
- Downtime as a result of a power outage (covers all your electrical needs for up to 12 hours)
- Theft or vandalism of any equipment you own, such as wiring, panels, switches, breakers, motors and relays.
Commercial electrician insurance is a form of commercial insurance that is designed for those who are employed as electricians, as well as those employing electricians and providing insurance. Those who own their businesses as electricians but don’t go out of their way to perform professional electrical work will also need to have this form of commercial coverage. Although the cost of commercial insurance can be expensive, those who are serious about hiring an electrician will want to consider a commercial policy with a low annual premium.
If you lack commercial electrician insurance, you can open your business up to many risks. Before hiring an electrician without commercial insurance, you should get a quote on the insurance and reviews from other clients. It is also essential to know an electrician’s experience and any complaints filed against them. This can be easier said than done and more of a risk if the work is large and expensive.
In the case of residential electricians, you have several safety responsibilities that come along with performing electrical work in your home or business building. You’ll need to be sure that the residential electrician insurance coverage you buy will protect you in all of the ways that you should be covered while doing electrical work in your residence. However, only do so if you know the ins and outs of this type of insurance.
Which Types of Cover are Available?
General liability cover is a policy that will protect you from being held liable, often for costs that have arisen due to your or your employee’s negligence. However, there are some instances where this insurance will not cover you. Suppose you have a policy that doesn’t cover your employees. In that case, it may be a good idea to look for a different insurance provider with an electrician insurance policy that will offer liability protection.
Workers compensation is another basic form of coverage. You can be sued for compensation for personal injury or any wrongful death that you cause to someone else. Worker’s compensation is significant for electricians who are often called upon to perform specific tasks that can cause them to be injured. This will provide compensation to those who have been injured or killed due to a faulty installation or a negligent act on the part of the electrician.
In addition to the liability issues that come with being an electrician, being covered with workers comp can also help when people are injured while using your work tools. In most states, professional electricians are required by law to provide their workers with proper safety equipment. If someone is injured performing service or maintenance on your properly installed wiring, it may be in your best interest to purchase this kind of coverage, which will protect you when someone is injured due to your negligence.
Equipment breakdown coverage is designed to cover the electrical equipment you will need to perform your job. If the equipment breaks down while at work, this insurance will cover it. However, you should be aware that this insurance will not cover any damage that has come about due to everyday use or wear and tear. This type of insurance may be essential if your business relies on your equipment breaking down frequently.
Electrical contractors are often underinsured, leading to losses by both customers and contractors. It’s often cheaper for the contractor to buy insurance, especially if the contractor is doing any electrical job. The lack of coverage can result in loss of income, repair costs and lawsuits against the contractor. It’s best to spend a little extra on insurance to gain peace of mind.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Community Group Insurance
Commercial Van Insurance
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