Electrical Equipment Installation Insurance

Whether upgrading commercial lighting or repairing electrical systems, electrical contractors enable businesses and households to stay powered up. 

Impeccable installation and safety are crucial for delivering results that meet the code and wow customers.

However, performing electrical work comes with substantial risks, ranging from liability claims to workplace injuries. 

Proper insurance is crucial to protect your finances and business assets if the unexpected occurs. 

This article outlines essential commercial insurance coverages electrical contractors need, including:

• General liability insurance
• Workers compensation coverage
• Commercial auto insurance
• Equipment coverage
• Installation floater insurance
• Umbrella liability coverage

The Allen Thomas Group is happy to provide you with essential business insurance for electricians to safeguard your business assets and reputation.

General liability insurance is crucial for contracting businesses working in both residential and commercial spaces. It covers legal defense costs and settlements up to your policy limits if you are deemed liable for bodily injury, property damage, or other harms.

Electrician liability insurance protects your finances under the following types of situations:

• Faulty cables cause a fire that damages a client’s property
• Electrocution injury due to improper grounding or insulation  
• Employee negligence damages sensitive computer systems
• Accidental damage to a customer’s furnishings or finishes

Even with strict safety protocols, you cannot prevent accidents. Professional liability coverage from a top insurance company provides peace of mind if faced with a sizable claim.

Employee injuries are a real possibility when you are responsible for handling live electrical wires and working from heights. Falls, shocks, burns, cuts, strains, and other claims could result in substantial lost time and medical expenses.

Carrying proper workers’ compensation insurance is mandatory in most states. It covers lost wages, medical bills, rehabilitation, and long-term care for injured employees. When an accident happens, use workers’ comp coverage to help the injured worker without worrying about claim costs.

Key aspects of workers’ comp insurance for electrical businesses include:

• State-required limits based on payroll and risk classifications  
• Claim administration expertise to facilitate medical care and return to work
• Discounted prescription drugs and access to provider networks

In addition to fulfilling state requirements, workers’ compensation insurance can help prevent workplace injury claims from depleting your finances.

Partner with an insurance broker specializing in helping electrical contractors safeguard their business.

As an electrical pro, you rely on expensive tools like conduit benders, wire pullers, cable cutters, volt testers, and power drills to deliver professional results efficiently. Having proper insurance to repair or replace these assets following financial losses is essential. 

Options for covering contractor equipment include:

• Inland marine insurance – Broad coverage for tools and equipment with a blanket limit.
• Scheduled policy – Covers specific high-value items with selected limits per item. 
• Installation floater – Tools and materials for a specific job site can be covered.

Discuss the right approach with your insurance advisor based on your tools, materials, and exposures.

Don’t leave crucial equipment uninsured.

Performing major electrical installation contracts often means you have substantial money tied up in materials staged at the job site and work completed awaiting sign-off. Fire, storms, floods, theft, and vandalism could all strike before the customer accepts and pays for the finished electrical work.

Installation floaters and builders’ risk policies cover materials and contracted work against loss while on a customer’s premises during a project.

This coverage helps safeguard your invested time and materials if a catastrophe strikes.

A serious injury claim could exceed your policy’s limits even with a general liability insurance policy. This opens your electrician business assets up to potential seizure without extra protection.

Adding an umbrella liability policy provides a second layer of coverage above your general liability maximum. It provides $1 million to $5 million (or more) in additional protection to cover catastrophic claims that breach your primary policy limits.

For electrical contractors taking on major installation projects, umbrella insurance provides coverage and invaluable peace of mind.

It prevents having to pay claim amounts beyond your normal policy limits if faced with a worst-case incident.