If you get general liability insurance for example, the cost of damages, settlement fees and also attorney fees will be taken care of by the company offering the insurance coverage if it is a covered claim.
This Electrical Contractors insurance is very important for electrical contractors because they often come in contact with dangerous equipment that can easily lead to debilitating injuries. Also, even the simplest of mistakes while work is in progress can result in fairly costly lawsuits.
So what is the average insurance cost for electrician contractors?
Electrician contractors pay more for insurance than what other business owners pay as a result of the risky nature of the work. For instance, faulty electrical work could lead to damages of appliances in the premises or injuries to people walking into the premises. However, the premium is still very affordable.
On average, an electrician contractor will pay from $700 to $1,200 each year for Electrician’s Insurance. Most insurance companies will take the payments in installments paid out over 10 months.
There are a number of factors that will be looked at by the company in fixing a rate but the biggest factor is the size of the policy. With an average electrician insurance coverage, you will be offered policies with limits of $1 million or $2 million. Higher coverage needs translate to more expensive premiums.
Again, the rates will change depending on your state of operation. This is because courts in some states are known to award higher damages in personal injury and property damage cases. Similarly, the track record of your company will be a factor in determining the premium the fewer number of claims the higher the premium. If you have a record of accidents or lawsuits in the past you may have to pay 3-4 times the average premium.
How Insurance Works
Insurance is no longer a luxury for electrician contractors. This is because most clients will not allow a contractor to start work on their site without a valid proof of insurance.
With an Electrical Contractor’s Insurance policy, the cost of the damages or settlement fees as well as the attorney fees will be taken care of for covered claims. However the amount paid out from the insurance company cannot exceed the policy maximum. So with a $1,000,000 policy and a $1,250,000 settlement, you will have to source for the additional a $250,000. This is why electrician contractors handling big projects are advised to pay premium for the highest possible cover. It is always a fraction of what you stand to lose if a lawsuit goes against you!