If you’re in the electrical contractor industry, you should be well-insured. General liability insurance covers your company for a variety of common risks, while other policies are industry-specific. You should also consider purchasing cyber liability insurance for your business, which will cover any damages awarded by a court. Property insurance can protect your business from natural disasters, and it can help pay for legal fees and other expenses. Listed below are some common policies for electrical contractors.
General liability insurance
Electrical contractor insurance provides protection against property damage and bodily injury caused by electrical work. This type of policy also includes coverage for injuries or damages to other people. For example, if you hire an employee to install new light fixtures, you should have a general liability policy to cover any injuries or damages caused by your services. It also helps cover any medical costs that may arise after a customer is injured. In this example, you may have an employee who slips and falls while using a step ladder. The employee sticks out his or her arm to catch himself, but falls and breaks the arm.
The cost of insurance for electrical contractors varies. Depending on the type of work you do, your business’s assets, and the number of employees you have, your insurance coverage will vary. Also, make sure to compare insurance quotes from several different insurers. You can save money on your insurance premiums by bundling policies, such as general liability insurance and commercial property insurance. For more savings, consider bundling your business’s insurance with another type of policy, such as commercial property insurance and business interruption insurance.
Workers compensation insurance
Although workman’s compensation insurance is not mandatory in every state, most businesses with employees must carry some form of workers’ compensation insurance. The insurance helps to cover the cost of lost wages and medical bills if an employee becomes injured at work. This type of coverage also protects the business owner from bodily injury lawsuits. Before you sign up for any type of workers’ compensation insurance, check with your state’s insurance department to make sure you are in compliance with the law.
If you work as an electrician, you are probably aware of the legal requirements for this type of insurance. This type of insurance covers medical bills, lost wages, and disability benefits for injured employees. While this is a crucial coverage for employees, it’s also optional for electrical contractors. The cost of workers’ compensation insurance for electrical contractors averages $145 per month or $1740 per year. You can find a plan that fits your budget by contacting an insurance agent.
Umbrella liability insurance
You may not realize that your business can be financially protected by Umbrella liability insurance for electrical contractors. This insurance covers you when your basic insurance policies are exhausted and your financial future is at risk. Electrical contractors must also purchase workers’ compensation insurance, which protects them from any accidents that may arise in the course of their work. Regardless of the size of your electrical contracting business, it’s important to protect your workers and your business with adequate insurance coverage.
Electrical contractors should be especially vigilant about their liability coverage. Umbrella insurance extends the limit of their liability coverage to $1 million in most cases. Because electrical work is considered extremely dangerous, one mistake could cause devastating consequences. The coverage limits of electrical contractor umbrella insurance are often very high, so you may want to consider a policy that can provide additional coverage. However, if you don’t need this insurance, you may be better off without it.
An electrical contractor license bond is a necessity for all businesses, from electricians to electrician apprentices. It protects the interests of both the company and its customers by covering expenses associated with client disputes. These bonds are relatively inexpensive and only cost a small percentage of the business’s total budget. Most states require electrical contractors to have a license bond, but not all of them do. To find the right insurance for your business, read on to learn more.
The amount of a license bond depends on the jurisdiction you’re in and the state licensing authorities. The cost of the bond varies widely, ranging from one percent to five percent. The cost depends on a number of factors, including the extent of coverage, deductibles, and location. Some surety bonds are calculated as a percentage of the amount of coverage that you need, such as $100,000. If you’re a low-risk applicant, the premium will be relatively low. Conversely, if you’ve got a poor credit rating or a history of lawsuits, you can expect a higher premium.