What Type of Insurance Do You Need as an Electrician?
Posted on Oct 30, 2019
Electricians do important work on homes and businesses of all shapes and sizes. You work in all weather conditions to help bring light and warmth to the homes of others.
In addition to the hazards you face from the work you do, you also face risks from mistakes, accidents, and more. The right insurance can make a world of difference when it comes to your total protection and your risks as an electrical contractor.
Choosing the right insurance for electrical contractors must be a priority. You face too many risks in the way your business operates to do business without it. Unfortunately, it isn’t always easy to understand the various electrical contractor insurance requirements. This article will help.
What Goes Into an Effective Electrical Contractors Insurance Plan?
In mathematics, the whole is always equal to the sum of its parts. No more. No less. Your insurance, as an electrician, is only as good as the protection you have. That is why it is so important to make informed decisions when purchasing electrician insurance.
Unfortunately, not all parts are created equally, and it isn’t always easy to identify which parts are the most important and which you might be able to leave out of your insurance coverage.
While you don’t want to have too much insurance as an electrician, you also want to make sure you have adequate protection for your needs. While there are no specific electrical contractor insurance requirements, below are several types of insurance you should consider for your line of work.
- Business Owners Policy. This is a standard insurance policy that offers minimal coverage for the needs of most business owners. It includes protection for loss of income (sometimes referred to as business interruption insurance), business property, inventory and supplies, business equipment, and general liability.
- Commercial Vehicle Insurance. Offers protection for business vehicles, auto liability protection, vehicle theft, vehicle cargo theft or damage during covered events, and more.
- Liability Insurance. This type of insurance shields you from the financial fallout of liability related to your professional services. For instance, if an electrical fire occurs due to the wiring you installed, you could be found legally responsible. This coverage helps to pay for your legal fees, settlements, and judgments awarded against you.
- Workers’ Compensation Insurance. WCI offers protection for your workers if they are injured, become ill, or are killed while on the job. It is required for most businesses that have employees and highly recommended, even if your business isn’t required to have it.
Since all businesses are different, it is vital to work with an experienced insurance agency to help you get the coverage and protection you require on an individual level. Some agencies may recommend additional types of insurance, such as:
- Commercial Umbrella Insurance. Protection that goes beyond the scope of general and other liability policies you have for your business. It acts as an umbrella providing additional protection if judgments, settlements, legal fees, etc. exceed the limits of your existing liability protection.
- Cyber Liability Insurance. Sometimes called data breach insurance, cyber liability insurance offers protection for your business if your business is hacked and customer or employee information and data is compromised.
- Life Insurance. For electricians who operate as family businesses, especially those bringing children into the fold, business continuity, what happens to the company if you are no longer able to work in the business due to illness, injuries, or death, is essential. Life insurance is one way to protect your business and help your family get the company back on its feet after you are gone.
- Key Person Insurance. In addition to life insurance, “key person” insurance can be a vital tool for helping to maintain business continuity if a person leaves and is no longer able to provide essential guidance, skills, and expertise.
Of course, these are just the basics. Every electrician’s business is unique and different. That means your insurance needs are too. Working with a dedicated independent insurance agency, like Otterstedt, can help you get the real story about your insurance needs.
Contact Otterstedt Insurance Agency today to see for yourself why we have been a vital part of the New Jersey insurance landscape since 1919.
We believe our commitment to the community and businesses who call it home is the main reason for our continued success.
Call us at 201-227-1800 today.
