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Electrical Contractor Insurance: Coverage Types & Costs

Electrician liability coverage starts as low as $21.25/month.*

*Applies to quotes made through SimplyBusiness only. Monthly payment calculations (i) do not include initial premium down payment and (ii) may vary by state, insurance provider, and nature of your business. Averages based on July-September 2023 data of 10% of total SimplyBusiness policies sold.

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  • Most states require electrical contractors to purchase liability coverage as a condition of getting an electrician license.
  • Before you do any electrical work, it’s important to consider opting for general liability coverage, E&O insurance, and some form or equipment coverage (BPP or inland marine).
  • Almost every state requires business owners to buy workers’ compensation coverage as well.
  • Some business owner’s policies may include that includes general liability coverage, commercial auto insurance, business interruption insurance, and commercial property insurance all in one plan.
  • The quickest way to find a plan that matches your needs is to use an online comparison tool. It asks you questions and matches you to the right type of insurance for your business.

No matter how much electrical experience you have, electrician insurance is a must.

This type of insurance protects you in many circumstances, such as when you make a professional mistake or when one of your employees causes an accident while driving one of your vehicles.

This guide aims to help you understand how to best protect yourself and your business by highlighting:

  • The need for electrician liability insurance
  • What type of coverage you need
  • How you can go about obtaining it

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Types of Insurance Offered
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Do electricians need business insurance?

Yes. In fact, most states require electricians to provide proof of insurance as part of the professional licensing process. What types of insurance you need will depend on your state laws.

That said, we recommend all electricians purchase business insurance regardless of their state requirement since there is an elevated risk of injury and potential damage to property associated with the trade.

Whether working as a self-employed electrician or an electrical contractor for a large company, business insurance can help you avoid having to pay out-of-pocket for medical expenses, property damage, or lawsuits.?

What type of insurance do electricians need?

At a minimum, electricians should aim to have coverage for their employees, their equipment, and liabilities relating to third parties they come into contact with.

However, each state has its own requirements regarding what types of business insurance electricians must have.

For example, in California, all electricians must have general liability insurance with minimum coverage limits of $1 million per occurrence and $2 million of aggregate. Additionally, most states require all electricians with one or more employees to have workers’ compensation insurance.

Consider having the following types of business insurance coverage at a minimum:

  1. General liability insurance:
    Electrician liability insurance protects against losses?associated with property damage and bodily injuries to third parties. For example, if you visit a client’s home for electrical work and accidentally damage their property, your general liability plan could cover the cost of fixing or replacing their damaged property.
  2. Inland marine insurance:
    Also known as equipment and small tools insurance, inland marine insurance covers equipment and tools used at a job site or when in transit. For example if your car is broken into and your tools are stolen, inland marine insurance can cover the cost to replace them.
  3. Workers’ compensation insurance:
    Workers’ comp covers medical expenses and lost wages for employees who develop illnesses or sustain serious injuries on the job. For example, if one of your employees sustains a severe burn while handling electrical wires, your insurance can cover medical expenses and lost wages. Some states, like California, allow the business owners to be added to the workers’ comp plan or even offer coverage to sole proprietors.

If you need help deciding which is the best business insurance for you, you can also speak to an insurance professional over the phone for personalized assistance and guidance.

(855) 843-2963

Call to speak to a licensed insurance professional.

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Hiscox Insurance

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AMB Financial Strength
A (Excellent)
Specialized for:
General Liability, Professional Liability, Business Personal Property

Why We Like It

Hiscox is one of the largest insurance providers in the US and operates in all 50 states. It offers serval types of coverage options to suit your needs including:

  • General liability insurance
  • Professional liability insurance
  • Business personal property insurance (add-on)

Hiscox specializes in insurance for small and micro-businesses and its robust coverage options are available for tons of business types & trades. Hiscox also has over 120 years of experience behind its name as part of the original Lloyds group from 1901. This long track record speaks volumes for how trustworthy Hiscox is.

Coverage Highlights

General Liability Coverage through Hiscox offers your choice of access to:

  • $1 million occurrence limit & $2 million aggregate limit
  • $2 million occurrence limit & $3 million aggregate limit

Other coverage highlights for General Liability include:

  • $100k in coverage for damage to rented premises
  • $5k in coverage for medical payments
  • Blanket Additional Insured endorsement (automatically included)
  • Waiver of Subrogation endorsement (optional)

Professional Liability Coverage through Hiscox offers your choice of access to:

  • $1 million occurrence limit & $1 million aggregate limit
  • $2 million occurrence limit & $2 million aggregate limit
  • $3 million occurrence limit & $3 million aggregate limit

Business Personal Property add-on:

  • Business Personal Property coverage is available as an add-on to your Hiscox General Liability policy
  • Choice of coverage limits: $5k, $10k, $15k, $20k, or $25k

Markel Insurance

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AMB Financial Strength
A (Excellent)
Specialized for:
General Liability

Why We Like It

Markel Insurance Company is a nationwide insurance provider with over 70 years of experience. It offers General Liability coverage for niche small businesses including contractors and other professional services. Markel is known for its exceptional customer service and its overarching customer-first company policy which prioritizes offering good guidance ahead of selling policies. Markel has also set a robust goal of becoming the premier claims-handling organization in its industry. As such, it works to maintain the highest ethical standards and offer fair and equitable claims services to all customers. This makes it an ideal partner for insured parties.

Coverage Highlights

With General Liability through Markel, you can gain access to:

  • $1 million occurrence limit & $2 million aggregate limit

Other coverage highlights include:

  • $100k in coverage for damage to rented premises
  • $5k in coverage for medical expenses
  • Waiver of Subrogation (optional)
  • Blanket Additional Insured endorsements (optional)

Frank Winston Crum Insurance

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AMB Financial Strength
A- (Excellent)
Specialized for:
General Liability

Why We Like It

Frank Winston Crum Insurance Company specializes in providing expansive General Liability coverage at competitive prices for contractors and other construction-related businesses.

More notably, Frank Winston Crum is an admitted program which means it has met the regulations set by the state Department of Insurance.

This is great for insured parties as it means that if the insurer were to fail, the state would intervene and pay claims on its behalf. However, the chances of failure are slim given its A- financial rating from AM Best. Another highlight to mention is that its coverage automatically includes features that are typically add-ons with most other plans.

Coverage Highlights

With General Liability through Frank Winston Crum, you can gain access to:

  • $1 million occurrence limit & $2 million aggregate limit

Other coverage highlights include:

  • $300k in coverage for damage to rented premises
  • $10k in coverage for medical payments
  • Waiver of Subrogation (automatically included)
  • Blanket Additional Insured endorsements (automatically included)

ABIC Insurance

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AMB Financial Strength
A (Excellent)
Specialized for:
General Liability

Why We Like It

ABIC-RRG is short for American Builders Insurance Company. As the name sounds, ABIC specializes in plans for:

  • general contractors
  • artisans
  • handymen
  • electricians
  • and other trades in the building and construction sector.

Given the company’s niche experience, it is a great option for small businesses in the construction industry. ABIC offers expansive General Liability coverage and has skilled agents who will evaluate every insurance account based on the needs of the individual business.

Coverage Highlights

With General Liability through ABIC, you can gain access to:

  • $1 million occurrence limit & $2 million aggregate limit

Other coverage highlights include:

  • $100k in coverage for damage to rented premises
  • $5k in coverage for medical payments
  • Waiver of Subrogation (optional)
  • Blanket Additional Insured endorsements (optional)

Clear Blue Insurance

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AMB Financial Strength
A- (Excellent)
Specialized for:
General Liability

Why We Like It

If you need specialized General Liability insurance with a professional claims team to meet your contracting needs, Clear Blue is a solid choice. Clear Blue General Liability Insurance is specifically tailored for the construction industry with add-on options to help minimize your risks.

Clear Blue covers a wide range of contracting trades across the US but, with its headquarters in Charlotte, NC, mostly specializes in covering contractors in the Southeastern states.

It’s backed by the larger Frank Winston Crum group and has an excellent AM Best financial strength rating of A- VIII. This backing also makes them an admitted program which means it has met the regulations set by the state Department of Insurance (DOI). This is great for insured parties as it means that if the company were to fail, the state would intervene and pay claims.

Coverage Highlights

Contractors opting for General Liability through Clear Blue Insurance gain access to:

  • $1 million occurrence limit & $2 million aggregate limit

Other coverage highlights include:

  • $300k in coverage for damage to rented premises
  • $10k in coverage for medical payments
  • Waiver of Subrogation (automatically included)
  • Blanket Additional Insured endorsements (automatically included)

Harborway Insurance

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AMB Financial Strength
A+ Superior)
Specialized for:
General Liability, Inland Marine

Why We Like It

Harborway is a lesser-known provider that offers specialized coverage for:

  • General liability insurance
  • Business personal property insurance
  • Inland marine insurance

This provider offers great coverage for equipment and items you transport or store off-premises makng is great for companies that send employees to work off-site or occaisionally do field work.

While Harborway isn’t an AM Best rated company, it is reinsured by Munich Re which has an AM Best financial strength rating of A+.

Coverage Highlights

General Liability Coverage through Harborway offers access to:

  • $1 million occurrence limit & $2 million aggregate limit

Other coverage highlights for General Liability include:

  • $100k in coverage for damage to rented premises;
  • $5k in coverage for medical payments;
  • Waiver of Subrogation (optional)
  • Blanket Additional Insured endorsement (automatically included)
  • Contractors’ Errors & Omissions endorsements (optional)

Business Personal Property Coverage through Harborway offers access to: *Property limits of $5k, $10k, $15k, $20k, $25k, and $50k *Blanket Additional Insured endorsement (automatically included)

Inland Marine Coverage through Harborway offers access to:

  • $5k or $10k coverage limits on inland marine property
  • Blanket Additional Insured endorsement (automatically included)

Accredited Insurance

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AMB Financial Strength
A- (Excellent)
Specialized for:
General Liability

Why We Like It

Accredited Insurance is backed by the massively-known Travelers Insurance with whom it co-built a General Liability policy tailored specifically for small businesses.

Accredited offers insurance in all 50 states as well as Washington DC and has been in business for over 50 years. The company has proven itself for its high-quality service, stability, and integrity.

Accredited also has a strong financial strength rating of A- from AM Best. This means you can rest easy knowing that you will be supported by a strong company should anything go wrong.

Coverage Highlights

Contractors opting for General Liability through Accredited gain access to:

  • $1M Occurrence limit & $2M Aggregate limit

Non-contractors have the option of plans ranging from:

  • $100k occurrence limit & $300k Aggregate limit
  • $1 million occurrence limit & $2 million aggregate limit

Other coverage highlights include:

  • $100k in coverage for damage to rented premises
  • $5k in coverage for medical payments;
  • Waiver of Subrogation (optional)
  • Blanket Additional Insured endorsements (optional)

Travelers Insurance

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AMB Financial Strength
A++ (Superior)
Specialized for:
Professional Liability

Why We Like It

Travelers is one of the largest insurance providers in the US and offers nationwide business insurance coverage.

Travelers can offer many different types of coverage for businesses of all sizes but is specifically well suited for Professional Liability plans for companies in the fields of:

  • Accounting
  • Bookkeeping
  • Tax Preparation

Travelers is a great choice for professional liability backing thanks to the brand’s nationwide coverage, 160 years of expertise, and top financial rating of A++ from AM Best.

Coverage Highlights

Professional Liability Coverage through Travelers offers access to:

  • $1 million occurrence limit & $1 million aggregate limit

Optional add-ons include:

  • Defense Outside Limits coverage

Cerity

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AMB Financial Strength
A- (Excellent)
Specialized for:
Workers’ Compensation

Why We Like It

Cerity offers affordable workers’ compensation policies and can cover various types of businesses and industries. As a major insurance provider in the US, Cerity is known for its:

  • Low prices
  • Simple policies
  • Same-day coverage

When you sign up for a workers’ comp policy through Cerifty, you get same-day coverage and proof of insurance. This means you can get your business started faster with very little lag time.

Cerity is a well-known provider in the insurance industry and has an AM Best financial strength rating of A- (Excellent), as well as 4.4 stars on Trustpilot. Cerity is offered nationwide in all states except Ohio, North Dakota, Washington, and Wyoming (where private worker’s comp is not legally sold).

Coverage Highlights

Workers’ comp coverage through Cerity offers access to:

  • Bodily Injury by Accident at $1M per accident
  • Bodily Injury by Disease at $1M per each employee, subject to a $1M policy limit

Other coverage highlights for workers’ comp from Cerity include:

  • Statutory Workers’ Compensation coverage
  • Customers have the option to include or exclude the owner in coverage when permitted under state law

biBERK Business Insurance

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AMB Financial Strength
A++ (Superior)
Specialized for:
Workers’ Compensation

Why We Like It

biBerk is a subsidiary of the famous Berkshire Hathaway Insurance Group. As part of Berkshire Hathaway, biBerk is automatically backed by an A++ AM Best financial rating and over 75 years of experience in the insurance industry. This ensures you will get reputable service and solid coverage you can rely on.

The provider specializes in Workers’ Compensation coverage for small businesses across all US states except OH, ND, WA, and WY.

A major highlight of biBerk is that workers’ comp is available to sole proprietors and multi-employee businesses.

Coverage Highlights

Workers’ Comp coverage through biBerk includes Employers’ liability limits for:

  • Total policy limit of $500k
  • Bodily Injury by Accident at $100k/accident limit
  • Bodily Injury by Disease at $100k/employee limit
  • Coverage for the owner (optional depending on state law)

Other plan highlights:

  • biBerk’s Workers’ Comp plans offer statutory Workers’ Compensation coverage. This means that the employee is not required to prove that their employer is at fault to receive compensation.

USG Insurance Services, Inc.

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AMB Financial Strength
A- (Excellent)
Specialized for:
Cyber Liability

Why We Like It

With the growing need for cyber security coverage, look no further than USG Insurance Services, Inc.

USG offers top-notch Cyber Liability insurance to protect small and micro-businesses from cyber-attacks and data breaches originating from outside your company.

Plans are available for a broad range of business types and come backed by North American Data Security as well as a solid AM Best financial rating of A-. USG operates 20+ branches across the country, meaning you’re sure to have a regional or local office nearby to support you with queries and account management help when needed.

Coverage Highlights

Cyber Liability Coverage through USG offers access to:

  • $250k occurrence limit & $250k aggregate limit

Other coverage highlights for Cyber Liability include:

  • $1k deductible
  • $250/year flat rate of coverage
Compare business insurance See offers tailored to your business Suitcase and Shield With Checkmark LEARN MORE

Other types of insurance electricians may need

While general liability, workers’ comp, and inland marine cover the bulk of needs for small electrician businesses, some companies may need extra coverage.

Other important types of coverage electrician’s may need include:

Errors and omissions (E&O) insurance

Errors and omissions (E&O) insurance, also known as professional liability insurance, protects you against financial losses caused by negligence, malpractice, and mistakes.?

For example, imagine one of your employees makes a mistake with their electrical work because they misread a set of blueprints. E&O insurance would cover the financial losses associated with that error, such as for legal fees and settlements.

Commercial property insurance

If you have expensive assets, consider purchasing commercial property insurance, which protects against losses associated with fire, wind, hail, vandalism, burglary, smoke, and civil disobedience. This type of electrical contractor insurance covers equipment, tools, furniture, and other objects.

Commercial auto insurance

As your small business grows, you may need to add more vehicles to your fleet. If one of your full-time electrical contractors gets into an accident while driving to the job site, for example, a good commercial auto insurance policy will cover medical bills as well as collision damage. This type of insurance policy also pays for property damage caused by you or one of your employees.

What isn’t covered by electrician insurance?

Electrical contractors insurance doesn’t cover the following:

1

Earthquakes

General liability insurance doesn’t cover earthquakes, so you’ll need to purchase a separate earthquake policy even if you have comprehensive liability coverage.

See More See Less
2

War

Insurance companies exclude acts of war from general liability insurance and other types of insurance policies. If they covered damage caused by missiles and other weapons, these companies would quickly go bankrupt.

See More See Less
3

Infectious diseases

General liability insurance doesn’t cover medical bills related to infectious diseases. If you contract an illness, you’ll have to use your health insurance to cover lab tests, hospitalization, and other related expenses.

See More See Less
4

Government seizures

If the government seizes your property, you won’t be able to use liability insurance to cover your losses.

See More See Less
5

Floods

Natural disasters are happening more frequently, leading to significant property damage in affected areas. If you live in a flood zone, you’ll have to buy a separate flood insurance policy, as your general liability coverage won’t pay for damage caused by flooding.

See More See Less
6

Intentional acts

General liability and other types of insurance don’t cover any damages arising from intentional acts.

See More See Less
7

Wrongful termination

If an employee sues you for wrongful termination, your insurance company won’t pay to defend you or cover the cost of a settlement.

See More See Less

Why is it important to have electrician insurance?

The table below provides a few examples of why it’s so important for electrical contractors to have comprehensive insurance.

Scenario Type of Electrical Contractor Insurance Needed
An electrical contractor misses a project deadline,
preventing a construction company from completing a new build on time.
Errors and omissions
One of your employees backs into another vehicle, causing $3,000 in damage. Commercial auto
Another business owner sues you for slander after you tell
one of your customers that his company does shoddy work.
General liability
Your commercial building sustains significant damage during a riot. Commercial property
You have to suspend operations for 3 weeks due to a natural disaster. Business interruption
One of your employees trips over an electrical cable and breaks their leg. Workers’ compensation

How much does insurance cost for electricians?

For a comprehensive insurance policy, we found the cost of electrician insurance to be around $384 per month.

To give you a better idea of how much electrician insurance costs, we got quotes for different types of coverage using the online comparison tool from Simply Business.

Type of coverage Annual cost
General liability $3,957
E&O $53
Inland marine $594

For this quote, we assume that you own or rent a location in the Los Angeles area, have an annual revenue of $500,000, and have four employees. Keep in mind that this quote is for illustrative purposes only. Your costs will vary depending on various factors.

Factors involved in determining the cost of electrical contractor insurance include:

Compare business insurance See offers tailored to your business Suitcase and Shield With Checkmark LEARN MORE

How do I get electrician insurance?

Before you provide any electrical services, follow these steps to get small business insurance:

  1. Use our online comparison tool to request quotes from multiple insurance providers.
  2. Compare quotes based on price and coverage details.
  3. Choose the policy that offers the right balance of coverage for your business.
  4. Pay the first month’s premium to activate your policy.
  5. Contact your insurance agent if you have any questions.

(855) 843-2963


Speak with an insurance agent to get a personalized comparison and free quote.

Tips for saving money on electrician insurance

Here are a few tips for saving money on electrical contractor insurance.

Electricians insurance FAQs

How do I get electrician insurance?

Use the LA Times Compare tool to research providers and compare quotes. Once you find a provider, fill out the application for insurance and submit your first premium payment.

How much does business insurance cost for electricians?

For a Los Angeles company with four employees and $500,000 in annual revenue, we found the cost of electrician insurance to be around $384 per month.

How much electrician liability insurance will I need?

Each state has different requirements, so check with your licensing body to determine how much liability coverage you’re required to carry.

About the Author

Leigh Morgan
Leigh Morgan Personal Finance

Leigh Morgan is a seasoned personal finance contributor with over 15 years of experience writing on a diverse range of professional legal and financial topics. She specializes in subjects like navigating the complexities of insurance, savings, zero-based budgeting and emergency fund development.

In the last five years, she’s authored over 300 articles for credit unions, digital banks, and financial professionals. Morgan is also the author of “77 Tips for Preventing Elder Financial Abuse,” a book focused on helping caregivers protect the elderly from financial scams.

In addition to her writing skills, she brings real-world financial acumen thanks to her previous experience managing rental properties as part of a $34 million real estate portfolio.

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