Electricians have a unique combination of technical knowledge and physical skills that puts their services in high demand. If you’re an electrician, you know clients hire you to do crucial work, often in challenging conditions, and those projects come with significant risks. That’s why you need electrician insurance.
But what exactly does electrician insurance cover? How much does electrician insurance cost? How do you know what type of coverage you need?
Our guide to electrician insurance answers those questions and more so you can be well-informed about this crucial financial protection for your business. Let’s dive in.
Why electrician business insurance is essential.
Nobody wants to spend their workdays worrying about what might go wrong. Still, it’s important to consider the specific risks electrical contractors face. These risks highlight the importance of getting the right electrician business insurance.
Here are some made-up scenarios representing the very real risks faced by businesses like yours:
- One of your employees is on a ladder when they lose their balance and fall, breaking their arm and incurring over $10,000 in medical bills.
- A client says you made a mistake when wiring part of their building and they now have to close for several days to have the work redone. They sue your business for the $75,000 in revenue they lost while closed.
- Thieves break into your work van and steal more than $1,500 worth of tools.
- A fire at your office destroys equipment valued at $25,000.
We hope these types of incidents never happen, but they could.
If your business doesn’t have electrical contractor insurance that covers critical risks, you’ll have to pay the costs out of your savings or revenues. For many small businesses, one serious incident not covered by insurance can create an expense that’s difficult to manage. In fact, some don’t survive being hit by a lawsuit or property damage.
The good news is that comprehensive insurance for electrical contractors can pay for these types of expenses and more—protecting your finances and helping your business keep moving forward after an expected event. Read on to learn about the coverages included in electrician business insurance from THREE.
THREE’s comprehensive policy protects electricians.
A THREE policy provides comprehensive insurance for electrical contractors. But what does “comprehensive” mean? Essentially, we include several types of coverage—which other providers might offer separately—in one, single policy.
- General Liability insurance addresses third-party bodily injuries and property damage. Importantly, this includes incidents that occur after an electrician has completed the project and left the site. While we don’t use the term in our policy, the insurance industry typically refers to this as the “completed operations” portion of a policy.
- Workers’ Compensation insurance covers employee medical expenses if someone gets hurt or sick on the job. It pays bills for treatment and rehab. It can also cover a portion of an injured employee’s wages while they recover.
- Professional Liability insurance is also called Errors & Omissions or E&O insurance. It can pay costs related to client lawsuits over alleged mistakes by your team. This includes court-awarded damages and your legal defense costs.
- Employee Theft coverage protects your business if someone who works for you steals from your company or a client.
- Commercial Auto insurance covers vehicles your company owns or rents. It can pay costs related to lawsuits filed by people over accidents where your employee is at fault. Commercial Auto also covers repairs to your vehicles after accidents, damage from vandalism, and other specified causes.
- Property insurance coverage protects the physical items your business owns, helping with costs to repair or replace them.
- Cyber Liability insurance for electrical contractors addresses the risk of someone gaining unauthorized access to your systems, stealing sensitive information, and using it to commit fraud. The Cyber insurance in a THREE policy can pay specified costs related to a cyberattack.
In short, a THREE policy provides the coverage most electricians need.
How THREE insurance benefits electrical contractors.
THREE offers the most coverage in a single policy for small businesses. Why is that important?
First, you’re busy running and growing your business and surely would rather focus on that than spend lots of time on business insurance—researching and purchasing multiple policies, updating all those policies as your business evolves, managing multiple renewals, etc. All-in-one electrical contractor insurance from THREE reduces the time and effort required to ensure your business has the right coverage.
Our comprehensive approach also helps ensure businesses have the coverage they need. Companies with multiple business insurance policies can’t always be sure they’re adequately protected.
In addition, if you ever need to file a claim, it’s much easier to work with one company.