Electricians have to think about how they can work best with clients and what future jobs to apply to on a daily basis. But they also need to think about the risks of the trade alongside these constant concerns. The Electrical Safety Foundation International (ESFI) estimated that in 2016, 420 electrical-related injuries were inflicted upon people involved in the trade. Few of these were fatal, but the ESFI also saw an increase in fatalities in this trade. As a result, the cost of insurance coverage for electrical contractors increased in many cases.
Electricians should be no stranger to liability insurance costs. It fluctuates over time and is often relies upon a number of factors, many of them out of their control. However, a general liability insurance policy is usually a necessity for electricians and can often make the difference between a lifetime of electrical work and a failed business venture. Electrician’s insurance doesn’t have to be a mystery, but it is something that you will have to discuss with an insurance agency you trust prior to signing up for a plan. For a closer idea of what you might pay, here are some of the factors that go into insurance quotes and what you might expect from your next business insurance plan.
Number of Employees
The number of employees that work at your electrical contracting company has a direct impact on how much money you pay for your liability insurance, workers’ compensation insurance, or any other policy you need to have to stay safe on the job. The reason why your workers’ compensation cost increases with the number of employees under your care should be obvious. Because your employees put themselves in serious and potentially injurious situations on a regular basis, workers’ compensation rates will increase in relation to the higher likelihood that someone will suffer injury due to a severe electrical shock or a car accident en route to a job site.
How Far You Have to Drive to Get Work
Most electricians have commercial auto insurance because this type of liability coverage allows anyone who works for them the ability to drive a work vehicle. Since the job requires electricians to drive wherever it is they need to go to fulfill a contract, commercial auto insurance is something that almost all electrical businesses with more than one employee ought to have.
How far you drive impacts your commercial auto insurance and your general liability insurance rates. If your company is a “small town company” and doesn’t do much traveling outside of a 30-mile radius that extends out from your company’s location, you will likely pay less in commercial auto insurance than a larger company who offers their services to most of the state. This typically doesn’t impact general liability rates, as you still have as much chance of causing property damage 200 yards away from your company site as you would if you were working 200 miles away.
Where You Work
Believe it or not, construction sites, as well as general location, play a vital role in defining your insurance requirements and overall costs. Urban states with bigger cities, like New York and New Jersey, have higher insurance rates because of governmental regulation and unions. More conservative States such as Texas and Indiana have lower insurance costs because there is less regulation. Because insurance providers see more regulation as a risk factor, you might see higher rates if you are working in so called “Liberal States vs. Conservative States” .
Additionally, those who work on commercial sites more often than residential sites might expect to pay more due to the increased number of people and potential hazards present on site. More variables like these create a greater likelihood of personal injury and medical costs, and therefore must be addressed in the policy cost.
The process of finding an affordable electrician’s insurance policy should not be like pulling teeth. Working with the right insurance company like Farmer Brown Insurance can save your company time and money, plus it gives you the peace of mind you need to continue doing what you do best. If you’re ready to get started, contact one of our insurance agents today!