What Kinds of Insurance Do Electricians Need?

Insurance for electricians and electrical contractors can be a complex topic. Due to the variety of exposures that these professionals face, an insurance program tailored to this profession will require a great deal of coverage both general and specialized. In order for an electrical business to run smoothly, it’s crucial to understand which risks need to be addressed and which insurance policies will cover said risks. As you develop your business insurance program for electricians, make sure that it includes the following forms of coverage.

The Essentials

Professional Liability

This insurance covers liability based on professional services. If you were to wire a home that eventually has an electrical fire due to problem with your wiring, this policy would protect you against a lawsuit, unless it’s proved that you were negligent in your work.

General Liability

While professional liability insurance addresses incidents that arise as a result of professional services, general liability insurance protects the company’s assets and covers general issues. Let’s say a customer comes to your office and has a slip and fall accident on your property, or you are accused of copyright infringement. This type of insurance may also be needed when working on certain large projects that mandate that the owner be included as an additional insured in case of a issue with the job site.

Commercial Property

Electricians invest a great deal into tools, signs, and buildings. Property insurance covers those items in case of a loss due to theft, fire, vandalism or other covered incidents.

Workers’ Compensation

This type of insurance protects your workers if they are injured on the job. It is designed to take care of the medical bills and employee’s lost wages while they’re disabled due to the injury. As electricians are privy to a variety of health and safety concerns on the job, this coverage is crucial.

Health Insurance

You have a variety of different options depending on your situation. You may want to purchase individual marketplace insurance if you’re self-employed or a business policy that covers yourself and any employees. Steep fines have come into effect if you don’t have coverage throughout the year.

Commercial Auto

Whether you’re using a personal vehicle for work or have a dedicated vehicle for your business, required or not it is always a good idea to have your vehicle insured. Since the vehicle is used in business, you’ll want to make sure you have sufficient coverage if your vehicle happens to cause property damage while on the job.

Other Insurance Coverage to Consider

Depending on your situation, it may be beneficial to add other insurance types.

Life Insurance

If your business is a partnership or you have specific employees whose loss would cause serious problems for your business continuity, consider a life insurance coverage to help in case of an unforeseen death.

Business Interruption Insurance

Whether you encounter a serious illness that incapacitates you for a significant period of time or a natural disaster that takes down your physical business location, business interruption insurance ensure you’ll have the funds to cope with financial setbacks.

Commercial Umbrella Policies

These policies fill in the gaps that traditional insurance lines don’t cover. If you want the peace of mind knowing that every possible incident is covered, this is a good option to consider.

No matter how many precautionary measures you put into place, you never know when an accident could happen and a claim could be filed. Don’t wait until the incident has already happened to start thinking about how you can protect yourself and your business. Develop your New Mexico business insurance program today.

About Daniels Insurance, Inc.

At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.