What insurance coverages should electrical contractors look for?
Small electrical business insurance policies normally provide many coverages, including those mentioned and others. Some important protections to consider are:
- General Liability Coverage: Usually protects against common accidents leading to injuries of third parties or damages to their property.
- Errors and Omissions Coverage: Usually protects against financial liabilities arising from mistakes in work that cause injury, damage or other harm.
- Commercial Umbrella Coverage: Usually protects by providing an additional layer of liability coverage for especially large claims.
- Commercial Property Coverage: Usually protects buildings, equipment and inventory owned by the business, against risks that could result in damage or loss.
- Inland Marine Coverage: Usually protects equipment and inventory during transportation between different locations, including a facility, stores and customer locations.
- Commercial Auto Coverage: Usually protects company-owned vehicles, such as work vans and pickup trucks, against accidents and other risks.
- Business Income Coverage: Usually protects against loss of revenue that continues after a covered event forces the business to pause operations.
Do electricians need workers compensation coverage?
Workers compensation coverage is generally required by Massachusetts state law if a business has employees. It’s especially important when employees are working with live electrical wires, but broadly is required regardless of what an employee does.
Thus, electrical businesses with employees almost certainly need workers compensation. Self-employed electricians without staff might not, though.
When required, workers compensation might be obtained alongside, or integrated within, a small electrical business insurance policy.
Does homeowners insurance cover self-employed electricians?
Homeowners insurance typically isn’t intended to cover the liabilities associated with electrical. Self-employed electricians normally need a small electrical business policy, at least for its liability protections. Whether commercial auto and commercial property need to be included depends on an electrician’s business.
An insurance agent specializing in small electrical business insurance can help self-employed electricians find a policy that has the coverages they need.