As an electrical contractor, you are aware of all the risks involved in the trade. They range from fire hazards and property damage to electrocution and even death. Even if you are a seasoned electrician, you shouldn’t overlook the need for insurance coverage. With a cover, you will get financial compensation in case you encounter any of the unforeseen events when on duty. Find the right insurance to ensure that you are adequately covered. Below are seven types of electrician insurance you might want to consider.
Image by Роман Распутин
Commercial General Liability Policy
Electrician general liability insurance covers property damage and accidental injuries that are directly linked to your business operations. It compensates the aggrieved party for the medical bills, repair costs, and litigation costs they may have incurred. Moreover, general liability insurance shields you against charges related to copyright infringement, slander, and libel. In most cases, you’ll be required to provide proof of this cover for you to be licensed as an electrical contractor.
Worker’s Compensation Insurance
If you have employed electrical technicians in your company, then you need worker’s compensation insurance. This insurance covers your employees for accidents they may encounter when working. The worker’s insurance offers many benefits, including compensation for the wages an employee misses while recovering. Additionally, the insurance pays the employee’s medical bills not paid by the health insurance. In case the worker requires ongoing rehabilitative care such as physiotherapy, the worker’s compensation cover will take care of these expenses. And in the unfortunate event of death, this insurance might cover a portion of the funeral expenses.
Commercial Property Insurance
Commercial insurance covers your business premise or office. The insurance will compensate you for damages caused by flooding, lightning, and other natural calamities. It also covers the loss of equipment and tools in your business due to vandalism and theft. Commercial property insurance covers the building that is accommodating your business, whether rented or owned. It might also cover damages on signs, satellites, landscaping, and fences around the property. When determining your rightful compensation, the insurance company considers several factors. They include the safety of the business premise, location, construction materials, among others.
Commercial Auto Insurance
If you have a vehicle that you use in running your business operations, then it’s crucial to have commercial auto insurance coverage. The insurance compensates for damages incurred during an accident if you are found at fault. Besides that, it will cover the medical bills incurred in treating your injuries and those of the other parties. The commercial auto coverage also offers protection of your business vehicle against theft or vandalism of parts.
Equipment and Inland Marine Coverage
Of course, you have the tools and equipment that you use in your operations. Most of these items are mobile, and you move with them from one station to another. Due to this, they are prone to theft and damage resulting from accidents. The equipment insurance covers small mobile tools and equipment that are less than five years old. On the other hand, sizable costly equipment is insured by inland marine insurance. However, this coverage does not include damage caused by general wear and tear.
Professional Indemnity Coverage
Omissions and errors are inevitable in electrical work. Professional indemnity insurance protects you against legal liability arising from charges due to such mistakes. Other legal charges included in the cover are those of negligence and failure to deliver quality services. The policy will pay compensations to the aggrieved party and all other litigation expenses. Claims arising from professional mistakes are not only costly, but they can also cause significant disruption to your business operations. The professional indemnity insurance cover gives you peace of mind and ensures that your business is restored to its former position.
If liability expenses, including litigation costs and medical bills, exceed your insurance limit, an umbrella insurance coverage will pay the additional costs. In other words, the umbrella liability insurance is a backup policy. It offers extra protection against liabilities that go beyond your reach. Usually, the policy gives additional coverage for the business owner’s policy, commercial auto liability insurance, and general liability insurance.
Every electrician needs insurance to be on the safe side in case something goes wrong at work. Contact Trade Risk today to get the best insurance for electricians.
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.