Electrical contractors work in a high-risk environment where safety, precision, and reliability are non-negotiable. Whether installing systems in residential homes or wiring industrial facilities, contractors are exposed to hazards that require comprehensive insurance coverage.
From injury risks to property damage, theft, and cyber threats, having the right policies in place is critical to keeping operations running and protecting your team and business assets.
Key Risks Electrical Contractors Face
Electrical contractors encounter a variety of risks on the job:
- Injury – Workers are exposed to live electrical parts, ladders, confined spaces, and overhead work, all of which can lead to serious injuries.
- Property damage – Faulty wiring, dropped tools, or accidents during installation can damage a client’s property both during and after a project.
- Equipment theft or breakdown – Tools and specialized equipment left on-site are vulnerable to theft or damage, causing costly delays.
- Auto accidents – Contractors often use vans or trucks to transport materials and crews, making commercial auto coverage a must.
- Cyber risks – As operations become more digital, cyberattacks and data breaches present growing concerns for job costing, billing, and communication.
Coverage Electrical Contractors Should Consider
To address these exposures, electrical contractors should carry several types of insurance coverage, including:
- Workers’ Compensation – Covers medical expenses and lost wages for employees injured on the job, along with employer liability for negligence claims.
- General Liability – Covers third-party injury, property damage, and even reputational harm like advertising injury.
- Completed Operations – Protects against claims arising from finished work, such as fire caused by faulty wiring.
- Commercial Auto – Covers damage to company-owned vehicles and liability for at-fault accidents, including hired and non-owned vehicles.
- Property Insurance – Protects tools, equipment, and other business property even if you don’t own your building.
- Inland Marine (Equipment Floater) – Covers tools and equipment in transit or at temporary job sites.
- Commercial Umbrella – Provides extra coverage when a liability claim exceeds the limits of your primary policies.
- Cyber Liability – Offers protection against cyber incidents, including data breaches or ransomware attacks.
For electrical contractors, the right insurance program is just as important as the tools in your truck. Contact McHugh Insurance Group to make sure your business is protected from every angle.