What Kind of Insurance Do Electricians Need?

Why Insurance is Non-Negotiable for Electrical Contractors

Electrical work can be risky. Whether you’re wiring a home, upgrading a business panel, or installing industrial systems, there’s always potential for on-the-job injury, property damage, or costly mistakes. By the nature of your work, you may encounter hazards such as electric shock, burns, extreme heat and cold, and even electrocution. For electricians, having the right insurance protection isn’t just smart to protect your business, your talent, and your hard work — it’s often essential to winning contracts and maintaining a strong reputation.

Here’s a breakdown of the core coverages every electrician should consider.

Key Types of Insurance for Electricians

Merchants’ MAP® Contractors Package, designed especially for contractors, includes automatic coverages such as:

Commercial General Liability Insurance – Also called general liability (or GL) insurance, this helps protect your business from third-party claims involving bodily injury, property damage, and more. This coverage protects you if a customer is injured in your business office, for example, or if you damage a customer’s property while working at their site. Some of the included GL coverages are:
- Blanket Waiver of Subrogation – Merchants agrees to not seek recovery from a third party with whom you have a written contract that requires us to do so.
- Primary and Non-Contributory – When required by written contract, coverage provided to an additional insured is on a primary basis and Merchants will not seek contribution from the additional insured’s own policy.
- Employment Practices Liability (EPL) – EPL coverage protects you against claims of discrimination, sexual harassment and wrongful termination.
Inland Marine Insurance – This protects materials and equipment when transported over land or while temporarily stored by a third party.¹
- Contractors Equipment Coverage- Protects your equipment and valuable tools, such as wire strippers, voltage meters, and drills, and also includes coverages such as rented equipment and employee tools and clothing, with various limits.
- Installation Coverage – Protects your property such as materials, supplies and fixtures intended to be installed, while at the job site, in temporary storage or in transit.

Need Additional Coverage?

Here are additional coverages to consider, all of which Merchants offers to complete your policy. While MAP® Contractors Package provides comprehensive included coverages for your business, you may want to add additional coverages, such as:

Additional Insured Options – Blanket or Scheduled – Provides liability protection for the additional insured under the named insured’s policy.
Contractors Errors and Omissions Coverage (Not available in Vermont) – Contractors Errors & Omissions (E&O) coverage is protection for claims when a contractor’s work is allegedly faulty or defective, and is installed or incorporated into other products or property causing a loss associated with the replacement or reworking of the defective work.
Cyber Liability Coverage (Not available in Vermont) – This provides comprehensive data security and privacy coverage that address both first party losses and third party liability claims, expert claims handling and breach response services in the event of a suspected breach, and a risk management website which provides information, guidelines and tools to help mitigate risk before a breach occurs.

Commercial Property Insurance – This covers your property such as buildings and/or their contents when damage is caused by a covered cause of loss such as fire.

Building and Business Personal Property Coverage – When Building and/or Business Personal Property Coverage is written, some of the included property coverages are:

Business Income and Extra Expense – Provides reimbursement of net lost business income and continuing normal operating expenses, including ordinary payroll due to the suspension of your business operations from a covered loss.
Equipment Breakdown Coverage – Equipment Breakdown coverage responds to the cost of repairing or replacing mechanical, electrical or pressure systems equipment that suffers a breakdown. Covered property can include compressors, pumps, computers, and boilers.
Communication Equipment – Provides coverage for loss of or damage to Communication Equipment used in your business from any of the covered causes of loss. Communication Equipment includes, but is not limited to, cellular / mobile telephones, pagers, and personal digital assistants (PDAs).

When you have the right coverage, you gain the financial peace of mind you need to pour your full focus into your clients’ needs and the success of your electrician business.

Click here to learn more about Merchants’ coverage for your electrician business

Or search directly for an agent to purchase the insurance you need today: Find an Agent

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