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We all know that electricians are not the most glamorous profession. But they’re also a necessary one. With so much of our lives being connected to electricity these days, it’s important for everyone from homeowners to business owners to have access to professional help when needed – especially in areas where DIY is not an option.
Electrician Liability Insurance: Cost & Coverageis part of what makes this occupation viable and lucrative enough for people with less than stellar backgrounds or careers who still need work but don’t want the hassles involved with other professions like lawyers or doctors…but does your insurance cover everything? Let us dive into some key points about liability coverage..
Introduction: When you think about getting an “electrician” as a gift this holiday season, why should you get them something more practical than just tools? Three great tips on whether their current equipment meets up-to-date electrical codes!
Topic: Electrician Liability Insurance: Cost & Coverage
Category: Finance
The “master electrician insurance” is a type of liability insurance that covers the cost and damages caused by an electrician. The most common form of this type of insurance is found in construction sites, where it protects against claims from contractors who are working on a building site.
Electrician insurance covers financial losses stemming from property damage, occupational injuries, lost wages, and vehicle accidents involving work trucks. Electricians may need many policies to offer comprehensive coverage, but they might save money by purchasing a business owner’s insurance (BOP). A BOP costs an average of $500 to $1,006 each year for electrical contractors.
The Hartford makes it simple to get electrician insurance. Its knowledgeable agents can create insurance that are specific to your requirements. In just a few minutes, you’ll get a free, no-obligation quotation.
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What is Electrician Liability Insurance and How Does It Work?
Electricians cannot get a single insurance that covers all possible dangers. Many carriers, on the other hand, provide bundled coverage, which enables electricians to save money by grouping insurance together. Electricians may acquire a BOP as well as extra coverage suited to their profession to save money on property damage and general liability coverage.
Commercial liability insurance is included in a BOP, and it compensates for claims resulting from an electrician harming or damage someone’s property. BOPs also cover damage to an electrician’s personal property. It may also offer business interruption coverage in the event that an electrician is temporarily unable to work.
When searching for electrical liability insurance, it’s critical to do your homework and check into all of your possibilities. Your electrician liability insurance may cover expenses associated with the investigation, defense, and payment of damage awards up to your policy maximum if you are sued for a covered incident.
Pro tip: Make sure you compare different plans to ensure you receive the best deal on liability insurance. At the very least, acquire three distinct quotations. This may be done either online or via a reputable insurance broker who can assist you in determining the appropriate coverage.
Common Electrician Liability Insurance Coverages
The size of your company, coverage limitations, and deductibles all determine the cost of electrician insurance. For $2 million in coverage, the median premium for a company owner’s policy ranges from $500 to $1,006. Electricians often pay between $200 and $354 per year for Bonds of Assurance, with insurance limitations dictated by project expenses, and between $250 and $950 per month for workers’ compensation. For $1 million in coverage, auto insurance costs $3,840 to $4,200 a year, and builder’s risk insurance costs $1,000 to $4,000.
Electrician Liability Insurance Costs & Deductibles by Insurance Type
* Premiums are calculated on an annual basis.
The following factors will influence the cost of your policy:
- Your experience and credentials: If you’re properly licensed and certified and have been in company for a long time with no difficulties, your expenses will be lower than if you’re just getting started or if you’ve had previous claims.
- The number of workers is: The bigger the number of employees you have, the higher the cost of workers’ compensation insurance will be.
- The following is a list of the cars in your fleet: Your business vehicle insurance premiums will be substantially greater if you have many work trucks operated by several personnel.
- The cost of your BOP depends on the value of the equipment and tools you possess. If you have particularly costly specialist equipment to cover, your BOP will be more expensive owing to the necessity for additional property damage coverage.
Self-employed electrician liability insurance expenses are cheap if you’re a one-man operation that conducts minor jobs and is covered by the general contractor’s builder’s risk policy. Costs are substantially greater if you’re a large electrical contractor with a team of workers and a fleet of work vehicles.
Common Electrician Liability Insurance Coverages
Electricians need insurance to cover the hazards that their profession poses to others as well as the possible loss of their company. Liability insurance for electricians and permit bonds safeguard against third-party losses. Damage to equipment and employee injury are protected by property coverage and workers’ compensation insurance. Auto insurance covers both work vehicles and third-party liability in the event of an accident. Many insurers may offer extra endorsements or add-ons to a BOP to provide the coverages that electricians need.
Electrician Liability Insurance: The Most Common Types
Insurance for General Liability
Because of the hazards involved with electrical work, every electrician should have a commercial general liability protection. You might be sued for causing harm to someone else’s property, your own equipment could be destroyed, or your company could be forced to close due to a catastrophe.
When either property damage or injury is a result of faulty work, the losses you caused would be covered by your general liability policy. However, if no one was harmed and you’re sued for not fulfilling work as defined in your contract, then this is a breach of contract claim, which is something that isn’t covered by Insurance for General Liability.
BOP
While a commercial general liability insurance may assist cover hazards connected with an electrician’s area of work, a business owner’s policy (BOP) combines three critical coverage categories, giving you more coverage for less money.
A BOP will provide you with three kinds of coverage:
- A general liability coverage protects you if you cause damage to someone else’s property or injure someone else. If your poor wiring causes a fire, for example, your insurance will cover property owners’ injuries as well as the cost of reconstructing the building.
- Damage to your own property, such as equipment, is covered by a property damage coverage. For example, your tools would be protected if they were taken from your workplace or vandalized.
- Firm interruption insurance protects you from losing money if you can’t run your business due to a tragedy like a fire or a natural disaster. If a fire destroys your vehicles and equipment, and you are unable to operate for two months, you will be compensated for lost revenues and operational costs.
A BOP combines all three forms of coverage into a single policy, saving you money.
Pro tip: Both Insurance for General Liability and business owner’s policies have two policy limits: a per-occurrence limit and a per-policy limit. The former caps the maximum amount paid per claim, while the latter caps the total paid per policy.
Bonds of Assurance
Bonds of Assurance are a type of insurance you may need to buy, but these bonds don’t protect you; they protect the people you’re working for. If you work for the government or certain property owners, you’ll be required to buy Bonds of Assurance to act as a guarantee that you’ll perform appropriate work.
There are different kinds of Bonds of Assurance, including completion bonds, which guarantee you’ll complete work as contracted, as well as license and permit bonds, which guarantee you’ll obtain permits and comply with other building codes. If you don’t fulfill your obligations, the surety bond pays the property owner for losses and tries to collect from you to recoup the payout.
Insurance for Workers’ Compensation
If you have employees, there’s a significant risk of on-the-job injuries or workplace fatalities. In fact, according to the Occupational Safety and Health Administration (OSHA), electrical injuries are one of the top four causes of all fatal construction accidents. Insurance for Workers’ Compensation protects against the risks of an on-the-job injury or death.
Workers’ compensation insurance covers the following expenses in the event of an injury:
- Medical expenses received as a result of work-related injuries
- Lost earnings if employees are absent from work.
- Benefits for entire or partial disability, either temporary or permanent.
- After a working fatality, surviving dependents are entitled to death payments.
Insurance for Workers’ Compensation is required in most states, with limited exceptions. For example, Texas doesn’t require workers’ compensation coverage, while other states require coverage only if you have a certain number of workers―more than three is common.
Insurance for Commercial Vehicles
Insurance for Commercial Vehicles provides coverage for all work vehicles you own. It also provides coverage for injuries and property damage caused by an employee involved in an on-the-job auto accident. Employees are considered agents of your company, and you can be liable for losses if they cause an accident while driving for work.
Risk Insurance for Contractors
Your property damage policy may limit coverage for damage to tools and machinery which are on your property. If you sustain damage while on a construction site, you may need Risk Insurance for Contractors to be fully covered. It also provides coverage if something goes wrong with your work product before a job is complete—for example, when a storm or fire destroys the wiring you installed.
Conclusion
In the event that claims are made against them, or if damage to their equipment or other property happens, electricians must ensure that they have enough electrician liability insurance coverage. It is necessary to have enough coverage in order to be qualified for some employment, and it may also protect you from financial ruin.
If you’re an electrician, be sure your insurance covers you in the event of a lawsuit or a tragedy. The Hartford is a market-leading insurance that provides plans tailored to electricians’ needs. Get a quote in minutes by visiting The Harford now.
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Professional liability insurance is an important part of any business. It provides protection from lawsuits and helps to protect your company’s reputation. Reference: professional liability insurance.
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