Electrical Contractor Insurance Cost – What Types of Coverage Do You Need?
If you’re running an electrical contractor business, you’ll need to invest in several types of coverage. For example, if you use expensive equipment and materials to install wiring and make repairs, you should consider getting equipment coverage. That way, you’ll be covered if equipment breaks or needs to be repaired. Additionally, you should consider adding coverage for employer’s liability, which mitigates the financial impact of an employee’s injury. Finally, vehicle coverage is important if you’re running an electrical business that relies on vehicles, and you should consider getting employee dishonesty coverage, which will protect you from employee theft or loss.
Commercial property liability
When deciding on an insurance policy for your business, make sure you consider commercial property liability insurance. This type of insurance will protect you against damages and lawsuits from your clients, as well as your own property. For example, it will cover damages incurred by your electrical contractor, as well as other physical damages. Other types of coverage will cover personal injuries or property damage, including libel, slander, invasion of privacy, copyright infringement, and misappropriation of advertising ideas. Finally, business interruption insurance covers the cost of your operations during the time of a claim.
In addition to the physical location of your business, commercial property insurance covers business equipment, including leased or owned tools and equipment. You can also include valuable papers and inventory in your insurance policy. Additional types of coverage can be added to your policy, so talk to your insurance agent to determine what you need. You should also include inland marine insurance for your expensive tools. In addition, consider inland marine insurance for your business equipment.
Professional liability
If you own a commercial electrical contractor business, you may have several types of insurance policies. It is important to know what each policy covers and what gaps are left. For example, you may need workers’ compensation insurance and errors and omissions insurance. These policies can help you cover any legal costs and settlements associated with customer claims. You can also look for umbrella insurance to fill in any gaps that exist in your current policies.
If you are an electrician, you must add your general contractor and property owners as additional insureds. This will help you cover any liability claims that come your way, whether you’re the cause of an accident or not. Also, liability insurance will cover the cost of paying attorney’s fees if someone is injured or harmed by your work. If you don’t have this type of insurance, you may end up being out of business quickly.
Employers liability
Many small business owners overlook the importance of obtaining an Employers liability insurance policy for their electrical contractors. This insurance policy will protect your company against claims by third parties due to faulty wiring or other work-related injuries. In most states, employers must carry this insurance in order to protect their employees and pay medical bills or lost wages if an employee is injured on the job. This insurance also covers legal defense costs. If an employee is injured due to your negligence, it can lead to significant costs for your business.
The cost of your electrical contractor Employers liability insurance depends on several factors. The number of employees, type of work, and amount of risk associated with each job will determine the price of your policy. Your insurance cost will also vary depending on the size of your payroll and your location. The more employees you have, the higher your premium will be. In addition to your employees, you also need to consider your assets, including your equipment and property.
Income protection
While purchasing electrical contractor insurance, consider a policy that offers income protection. This type of insurance pays monthly benefits if the electrician is disabled due to an accident. This policy will cover the costs of specialist bills and will cover the cost of time off. While income protection may seem like an unnecessary expense, it can help to ease the financial burden of self-employed electricians. Income protection is also a great option if you work as a contract electrician or are self-employed.
Buying income protection is not difficult. It all depends on your personal circumstances, type of work, and attitude to risk. A general rule of thumb is to purchase employers liability insurance for every employee. Public liability insurance covers legal costs, compensation for injuries, and property damage caused by your employees. Income protection covers your wages if you’re unable to work due to illness or accident. In addition to providing financial support, income protection will replace any lost income.