Five of the Most Common Insurance Types for Electrical Businesses

Five of the Most Common Insurance Types for Electrical Businesses

Five of the Most Common Insurance Types for Electrical Businesses

By Jim Loughlin


Electrical companies face a number of risks on a daily basis. Between property damage at a job site, auto accidents in company vehicles, employee injuries, theft of equipment, and any mistakes or errors that are made on a contract, it is a high-risk industry and businesses need to ensure they are prepared for any unfortunate scenario.


Insurance can be challenging to understand with dozens of different policies options to choose between. However, by evaluating the key risks that a specific business faces and understanding the different types of coverage, electrical companies and electricians are able to get the proper coverages to protect themselves.


To understand the basics of insurance for electrical contractors, here is a breakdown of the five most common policies:


      1. General Liability
        General Liability insurance covers a variety of scenarios and is the core insurance policy for a business. It covers third-party claims against a business for things like bodily injury and property damage. Plus, before starting a job, many clients will require an electrician to demonstrate they have this insurance coverage in place.
      2. Commercial Auto
        Commercial Auto insurance is essential for electrical companies that have company vehicles. In the event of an accident, this insurance provides coverage for liability, collision, medical payments, and more.
      3. Business Owners’ Policy
        Called a BOP, this packages together elements from General Liability, Commercial Property, and Business Interruption policies into one policy. The advantage of a BOP is that many carriers will provide a discount because it bundles many coverages into one convenient policy.
      4. Workers Compensation 
        Most states require businesses with employees to have Workers Compensation. Workers Compensation covers an employees lost wages and medical treatment in the event that they are injured while at work.
      5. Umbrella Insurance
        Many electrical companies and electricians also carry Umbrella Insurance in the event that their other insurance policies do not fully cover a claim. It acts as backup and provides additional coverage if a policy’s limit is exceeded.


When buying or renewing insurance, there are a lot of considerations for electrical companies, and no two companies are exactly alike. By speaking to a trusted agent who understand the ins and outs of the industry, businesses can be sure to be protected for any unfortunate scenario.


Jim Loughlin is a well-respected insurance industry veteran with more than 20 years of experience. He is currently the Senior Sales Director at CoverWallet, a tech company that makes it easy for businesses to understand, buy, and manage insurance – all online and in minutes.


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