How an Electrical Contractors Insurance Company Can Protect Your Business
Before you begin your search for an electrical contractors insurance company, make sure you understand the coverage that you should be seeking. There are several coverage options available, including Errors and omissions (E&O), Professional liability, and Mobile equipment. Listed below are a few of the most important ones to look for. Purchasing the proper insurance is crucial to the success of your business, so read on to find out how you can protect your business.
Professional liability coverage
The amount of coverage a professional electrical contractor needs can vary greatly. While a small company might not need to worry about such coverage, larger companies may have to pay over a million dollars per year for comprehensive coverage. Regardless of how much money you are spending, it is a smart idea to purchase a high-quality policy from an electrical contractors insurance company. Depending on your needs, you can opt for basic coverage or add a floater for installation work.
If you are self-employed, you may consider a separate business or individual marketplace policy. This type of insurance covers you in the event of an injury or loss of work. Since electrical work poses a daily risk, it is imperative that you protect your company from any liabilities incurred by your workers. Additionally, workers’ compensation insurance helps cover the costs of medical bills that result from workplace accidents, such as electrocution. If your electrical contractors insurance company does not cover you for workers’ compensation, you may be responsible for steep fines and even jail time.
Errors and omissions coverage
While your electrician may not have ever had to file a claim, errors and omissions coverage is important for electrical contractors. This type of insurance protects you from unforeseen expenses, including legal fees and settlements, when your company makes a mistake. Fortunately, errors and omissions coverage is very affordable for electrical contractors. To learn more about how errors and omissions insurance protects your business, read the following articles.
First, it’s important to understand the difference between error and omissions coverage. Errors and omissions coverage covers mistakes and omissions, but it does not cover intentional or dishonest acts. The resulting damage to a customer’s property is a result of a contractor’s actions. It’s not uncommon for a contractor to cut corners or substitute cheap materials for expensive materials. However, unless the contractor is aware of the potential for errors and omissions, the resulting expense may exceed the value of the work.
Mobile equipment coverage
Electrical contractors must consider mobile equipment coverage when choosing the right insurance plan for their company. Since electricians frequently carry expensive materials and tools from one site to another, theft is a common concern. Copper, cable, and wiring all have high resale value. Even tools such as cherry pickers can get damaged while on a job site. Fortunately, inland marine insurance covers these assets. Aside from specialized tools, it also provides coverage for non-fixed property such as cherry pickers.
While general liability insurance is the most important type of coverage for an electrical contractor, it is not the only kind. Mobile equipment coverage is essential for electrical contractors who work on commercial projects. For instance, if they work on a commercial building and a client’s home, the owner can be added as an additional insured in their policy. The insurance company will handle liability claims from third parties, even if they were not at fault. Under the policy, the insurance company will collect money from the responsible party.