Electrician jobs are often the most demanding and dangerous jobs in the industry due to the risk of injury and the complexity of the work. Electricians often work on equipment worth between hundreds of thousands to millions of dollars. In addition, electrocution is one of the leading causes of injury and fatality in the construction industry, of which most happen to electricians. Electrician contracting companies must ensure that their business and employees are protected when performing any electrical contracting work.
By having a combination of electricians liability insurance and umbrella insurance, your clients, no matter how big or small, can ensure that their businesses will be protected from losses and accidents that can happen on-site. What do they cover? How do these insurance policies work together?
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Electrical Contractor Insurance
In many states, electrician’s liability insurance is mandatory before taking on any electrical contracting work. However, even where it is not mandatory, it can be dangerous to conduct any type of work without insurance, as accidents and liabilities can often bankrupt a business.
Standard electricians’ insurance policies vary between insurance companies but most of them provide the standard policies of general liability insurance, workers compensation, professional liability, and commercial auto insurance.
- Electricians Liability Insurance – covers third party, property, and bodily damage which results from electrical contracting work.
- Workers Compensation – covers the medical payments, therapy, and lost wages of employees who are injured while working. This even provides death benefits to the workers’ beneficiary.
- Professional Liability Insurance – covers when facing lawsuits or other legal activities, including lawyer and paralegal fees arising from profession-related claims.
- Commercial Auto Insurance – insures the vehicles registered under the business or any vehicle used for commercial purposes which include but not limited to transporting of employees or materials.
As mentioned, insurance packages have different policies depending on the issuer, but most electrical contracting packages provide these four policies. Policies such as commercial auto insurance are optional depending on the needs of the business, but the other three are essential to protect the business and its employees.
Contractor Umbrella Policy
The electrical contracting insurance policies mentioned above only cover damages and fees up to $1M. However, electricians often work with equipment worth hundreds of thousands of dollars to millions of dollars, and professional fees can easily add up as well. In addition, in the case of an accident and long-term disability, the fees associated with all this can quickly exceed the $1M benchmark for even small jobs.
Contractor umbrella policies offer additional protection for damages exceeding $1M. An umbrella policy can extend the policy protection for all policies, including general liability, workers compensation, and professional liability, to over $1M and ensure that your business is protected.
Comprehensive Insurance
A comprehensive insurance package is a blend of both electrical contractors’ insurance and an umbrella insurance policy. Electrical contractors insurance is a requirement to conduct electrical contracting work and can protect your employees and your business. An umbrella policy insurance can complement the first one by providing additional protection, which for electrical contracting work is often a requirement.
A contractor umbrella policy, in addition to electrical contractors insurance, can offer fully comprehensive insurance policies and ensure that regardless of the size of the damage or incident, your company is covered.
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