What insurance coverages are important for electricians to have?
Electricians normally need a variety of coverages, in order to protect against a range of risks that they face. Many of these are either liability protections or property protections, although a few (e.g. auto coverage) can provide both types of protections.
Liability protections are primarily for situations where an electrical contractor is responsible for causing another party harm. Some liability protections that are often important include:
- General Liability Coverage: Often covers basic accidents that result in third-party injury or property damage, and may also cover defamation or some other common risks.
- Commercial Auto Coverage: Often covers a work van or truck, usually protecting against vehicle accidents and other risks.
- Errors and Omissions Coverage: Often covers mistakes made when giving advice, and may also cover other mistakes made when doing electrical work.
- Commercial Umbrella Coverage: Often provides additional protection in case a lawsuit exceeds another protection’s limit.
Property protections are mainly for the things that an electrical contractor’s business owns. Some protections that may be needed are:
- Commercial Building Coverage: May insure a building that an electrical contractor owns, such as an office or storage facility.
- Commercial Contents Coverage: May insure electrician tools, common tools, equipment, supplies, and other items kept at an electrical contractor’s main location.
- Inland Marine Coverage: May insure electrician tools, other tools and equipment, and supplies as they’re brought to/from job sites.
- Builders Risk Coverage: May insure electrician tools, other tools and equipment, and supplies when they’re at job sites.
- Business Income Coverage: May insure against prolonged income loss stemming from a covered disaster.
Are electrical faults and fires covered by small electrical business insurance policies?
Most small electrical business policies are able to cover electrical faults and fires. It’s important to confirm that a chosen policy’s coverages and terms provide protection, though. This is something that a specialized insurance agent who knows small electrical business insurance can help with.
Do electrical contractors need to have workers compensation insurance?
In Massachusetts, businesses with employees are generally required to carry workers compensation insurance. This normally helps with medical costs and lost wages if an employee is injured at work.
Self-employed electricians who work alone might not need workers compensation, but contractors with employees should be prepared to get this coverage. It could be purchased as part of a small electrical business insurance policy, or separately as a distinct insurance policy.
