Essential Coverage for Electricians and Electrical Contractors

General Liability Insurance

General liability insurance is a common type of commercial liability insurance coverage. Policies typically include coverage for bodily injury and property damage. Coverage is also available for advertising injury, which may include libel, slander and copyright issues. Coverage details vary, so it’s important to select the policy the best meets your company’s liability needs.

A tools and equipment floater covers the insured property wherever it is used and may include such items as hand tools, power drills, hoisting machines and power pumps.

General Liability Insurance Includes:

• Premises Liability – Premises liability protects your customers when they are at your workshop or retail space. It also protects them when you are working at remote job sites. If a customer receives bodily injuries on your premises or work area, your premises liability insurance will pay for the medical bills. This insurance also pays for property damages that occur at your place of business.
• Products Liability – If the products that you sell to your customers bring harm, suffering or property damages, your customers may sue your electrician company. Even if you did not manufacture the products, if they are found to be defective or to be the cause of bodily injuries and property damages, you may have to defend yourself from the legal actions. Products liability coverage pays for lawsuits related to products, and can pay the injury and damages settlements.
• Completed Operations – After you have finished performing electrician services for your customers, they may claim that the operations you completed for them caused problems. Claims or problems that include bodily harm or property damages are covered by your completed operations insurance. This coverage pays for the medical or repair bills that arise, and can pay for your legal defense fees as well.

Business Owners Policy (BOP)

General liability is included in a business owners policy, or BOP. A BOP provides you with additional electrical contractor insurance protection for your company assets. Asset protection includes tangible items such as your electrician tools, and intangible assets such as your company payroll. Other examples of BOP coverage options include:

• Buildings and Contents
• Business Income and Extra Expense
• Electronic Data
• Newly Acquired or Constructed Buildings
• Employee Dishonesty Coverage

Owners and Contractors Protective Liability (OCP)

Given the possibility of a lawsuit should someone claim to have been harmed by your work, you will almost certainly need liability insurance.

If working as a subcontractor, your customer may require you to have Owners and Contractors Protective Liability (OCP) coverage. This protects either a property/business owner or a general contractor from possible liability arising from the negligent acts of an independent contractor or subcontractor hired to perform work on behalf of the insured. The actual purchaser of the policy is the independent contractor or subcontractor, but the protection is for the benefit of the property/business owner or general contractor for whom the work is being done.

Commercial Auto Insurance

Also refereed as Business Vehicle Insurance, your personal auto policy probably provides coverage for your electrical contractor in business use of your truck, van or other vehicle. A personal auto policy is unlikely to provide coverage, however, if the vehicle in question is used primarily in business. It will not provide coverage for any vehicle owned by a business. For those vehicles you must have a business auto policy.

If you’re driving a truck you own personally for a business purpose and get into an accident for which you are liable, an injured person could sue you personally. Will your personal auto policy have enough coverage to pay all the damages? If not, a lawsuit may be filed against your business. If you use personal vehicles for business, you want to be sure you have high enough limits to protect your business. You should discuss this with your electrical contractor insurance agent.

Inland Marine Insurance

This electrical contractor insurance is a must so don’t let the term “inland marine” confuse you. As opposed to “marine insurance,” which covers products when transported over water, inland marine insurance covers products, materials and equipment when transported over land—e.g., via truck or train—or while temporarily warehoused by a third party. Collisions and cargo theft are the two most frequent causes of inland marine losses.