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Electrical Contractors Insurance

   |  May 23, 2016

What would we do without electrical contractors? They play a very important role in our society and allow current to flow, powering all our appliances and other devices that we rely on every day. Their job is very important and also one of the most hazardous there is. Nothing in life is certain and perfect and so there is a huge risk that something can always go wrong.  In order to protect themselves and what they do, these contractors rely on some sort of liability insurance coverage. In this case, electrical contractors insurance, which as will be explained later, is not only limited to contractors, but electricians and sub-contractors as well.

Electrical Contractors Need Insurance

The demand for contractors to perform work on a property whether residential or commercial has been on a gradual increase. With this increase it may be normal to assume that the amount of contractors applying for some sort of insurance will also increase. While many contractors do, there is a large amount that refuse to apply for any type of liability insurance. Many people take the risk of hiring these contractors to work on their property, whether it is to fix their roof, fix their plumbing system or do some electrical repairs. Every contractor should have some sort of liability insurance, to cover both them and their clients when working on a project. There is a process to go through when getting insurance and every country and state will vary. Electrical contractors insurance in particular protect both consumers and contractors with commercial or residential electrical work.

The need to protect their business from unforeseen risk and cost is what has been the main driving force behind many electrical contractors getting their liability insurance. Also in many cases, in order to get the required license, many agencies require that contractors get some form of liability insurance. It is important to note that there is a difference between an electrical contractor and an electrician. An electrical Contractor will own or run a business that is specialized in electrical works, while an Electrician is normally a tradesman or woman that can work for an electrical contractor. Typically, both these people will need to get electrical contractors insurance to do their work and to have some sort of protection, although it is generally accepted that the electrical contractor be the one to focus on ensuring he has this.

The Types of Electrical Contractors Insurance

The most important types of insurance coverage for an electrical contractor or electrician is Commercial Liability Insurance, which covers you if you are legally responsible for any damages that may be caused by your business operation. These may be damages to a person’s property or their body. However, there are certain exclusions to this, one which is, you are not covered for damages to your own property.

There is a popular misconception among sub-contractors. Many of these people believe that they do not need to get any electrical contractors insurance because they may be covered by the general contractor, and any damage or losses that may take place while they are performing their duties will be covered by the general contractor. These people couldn’t be more wrong. If a Sub-Contractor is performing their duties and there is an issue, which may be covered by the general contractor’s insurance. The general contractor can sue the sub-contractor to recover his money. For this reason, every sub-contractor doing electrical work on behalf of a general contractor should get their own insurance coverage. If you need to get your own liability insurance, click here to get an electrical contractors insurance qoute.

In many cases, contractors can add certain things to their insurance, such as machineries and equipment used in their business. A contractor will need to seek out the services of an insurance provider that can add these things if necessary. Many clients may also request to see a contractor’s certificate of liability insurance and so an insurance provider should be able to provide that at a moment’s notice as well.

Choosing your Insurance Package

Choosing the right electrical contractor insurance package and coverage can be a bit confusing at times, especially for electrical contractors and electricians. When seeking insurance, contractors and electricians need to ensure that the package being offered to them is one that will fit their needs. In some cases a general package is offered that may not cover the type of risk that these contractors will be undertaking. If a contractor will be undertaking a large commercial project, then getting domestic insurance coverage will not be the best thing for him to do. If something were to happen on this project, he/she will not be protected. Covers can include anything from domestic, commercial and industrial properties, as well as coverage for things such as testing, alarms and financial losses among others. Many contractors debate getting financial loss coverage, however, this is very important. If a contractor was working on a project in a commercial event venue. If due to the contractor’s negligence or otherwise an event had to be cancelled whether it’s for faulty wiring or another type of damage, the contractor may be liable for all money lost by the event being cancelled, and so it is important that financial loss coverages is part of the package.

In many domestic projects, clients can be a bit more particular about the type of work being done, this is simply because their home owner’s insurance premiums can depend heavily on the type of electrical work done on the property or maybe the plumbing, among other factors. Therefore, it is of paramount importance that electrical contractors take this into consideration when on a project.

In conclusion, it is not a deniable fact that electrical contractors do need to have protection based on the jobs they perform. The laws governing these types of electrical contractors insurance and what is needed may vary from country to country and from province to province. Contractors should take a look at this depending on their location as it can help them avoid unforeseen occurrences in the future and protect themselves from risk. If you need help shopping around for electrical contractors insurance, fill out a quote form and we will compare rates and packages for you!

Published: March 12, 2015

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