Electrical contractors work in a challenging, high-risk setting where they regularly handle live electrical systems, operate heavy equipment, and manage tight project timelines. Whether you’re on a residential remodel or a large commercial installation, you’re exposed to a unique set of risks that require more than just a basic insurance policy.
To protect your people, property, and reputation, you need construction-specific insurance coverage tailored to the electrical trade. Here’s what that should include:
Common Risks for Electrical Contractors
- Injury – Electrical shock, falls, and burns are among the most serious risks. Workers’ compensation ensures injured employees receive medical care and wage replacement.
- Property Damage – A faulty wire could spark a fire after project completion, or a dropped ladder might damage a client’s property.
- Theft & Equipment Failure – Tools left on-site are common targets for theft. Equipment breakdowns delay projects and cost money.
- Auto Accidents – Service vans are always in motion. Accidents can lead to injuries, lawsuits, and vehicle downtime.
Essential Coverage for Electricians
- Workers’ Compensation: Covers medical bills and lost wages for on-the-job injuries. Often bundled with employer’s liability insurance.
- General Liability: Protects against claims of third-party injury or property damage during operations.
- Completed Operations: Covers claims related to completed work, such as electrical fires caused by faulty installations.
- Commercial Auto: Provides physical damage and liability coverage for work vehicles. Includes coverage for rented or employee-owned vehicles used for business.
- Property Insurance: Safeguards buildings, tools, and equipment from covered perils like fire or vandalism.
- Inland Marine / Equipment Floater: Extends coverage for tools and materials while in transit or on a job site.
- Commercial Umbrella: Provides extra protection when claim costs exceed your standard policy limits.
- Cyber Liability: As tech use increases, contractors face exposure from data breaches and ransomware, especially when storing blueprints, specs, and payment info digitally.
Insurance isn’t just a box to check, it’s a crucial part of running a smart, secure electrical business. As your operations grow and risks evolve, regularly reviewing and adjusting your insurance program is essential.
Contact McHugh Insurance Group to tailor a coverage strategy that keeps your electrical contracting business protected.