What type of insurance should I have for an electrician?knoweasy tool

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What type of insurance should I have for an electrician?knoweasy tool

December 02, 2021

You have undergone extensive training to become an electrician. There are still a few things you need to straighten out before you can start your own business as an independent contractor.

As an electrician, finding the right insurance product can be complicated. To protect yourself, your business, and your co-workers, it's critical to get the coverage you need.


Basic Insurance Policies for Electricians

It's important to remember that policy names and options will vary from carrier to carrier. The following "essentials" are the main insurance products that almost every business needs to have.


Business Owner's Policy

This is the standard policy required by all types of business owners. It protects in the following situations.

  • Loss of income (business interruption coverage)
  • Damage/theft of business property
  • Damage/theft of inventory and supplies
  • Damage/theft of business equipment
  • General Liability (accidents not related to your professional services, such as a client being injured on your property)

Business owners' policies usually provide only the minimum coverage appropriate for the average business person. In some instances, business interruption coverage may be a separate policy.


Professional Liability

Professional liability insurance protects you if your electrical service causes a fire or other event that results in a lawsuit. It will not protect you if it is proven that the incident was caused by your negligence.

Health Insurance

If you are not already insured, search your state's health care marketplace to find the best commercial policy for you and your employees. If you choose not to purchase health insurance, you may face significant fines.

Commercial Vehicle Insurance

Any vehicle you use for business, even if it's your personal or family vehicle, should have adequate coverage in case of damage while on the job. Any equipment or inventory carried in the vehicle will be included in your business owner's policy.

Worker's Compensation Insurance

WCI protects your employees in the event of illness, injury, or death while on the job. Carrying WCI is required by most companies and is highly recommended even when not required by law.

Additional Policies to Consider

There are additional policies that will help protect you and your family in the event of a personal or professional tragedy. Consult with your insurance provider to weigh the risks and rewards associated with additional coverage.

Life Insurance

Life insurance is considered a basic need for most people, but it is especially important if you run a family business or home to bring children into the business in the future. A life insurance policy will help keep your family financially sound and keep your company running if you can't do so.

Commercial Umbrella Insurance

A business umbrella policy protects a general or professional liability policy. It provides additional coverage if any legal fees, settlements, or judgments exceed the limits of other liability policies.

Cyber Liability Insurance

You may not think that working as an electrician doesn't require you to worry about data breaches, but you do. If your company is hacked and sensitive employee or customer data is compromised, cyber liability insurance can protect your company.

Are you ready to become an electrician?

Working as an electrician can be a rewarding and well-paying career change. Electricians are in high demand in the United States, but being a smart businessman is just as important as being a skilled electrician.

Professional Electrician Tools

Knoweasy tools are professional electrician tools that can meet the various needs of electricians when working and effectively improve the efficiency and safety of their work.

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