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Why You Need Electrical Contractor Insurance

Electrical Contractor Insurance

If you’re a licensed electrician working in the province of Ontario, you're undoubtedly a highly trained professional. Electrical contractors that only use licensed master electricians, along with supervised apprentices, rarely need to make insurance claims, leading to reasonably priced policies. Even so, a valid electrician insurance policy is a requirement to apply for a business license. AIM Insurance Brokers can recommend a policy that protects your company from lawsuits and property damage costs so you can focus on growing your business.

Let’s take a closer look at the essential coverage for electrical contractor insurance. The most common claims tend to be for theft of equipment and materials. Copper wiring is expensive and a common target for thieves. Tools and equipment are also valuable and can be stolen or damaged on job sites.

Theft and Damage Prevention

Keeping your equipment and vehicles locked up and in a secure location can help prevent theft. Delivering materials to job sites the day when they will be installed, rather than storing them on-site, can also reduce the risk of theft.

Fire Claims

Liability claims due to fire loss happen. If your company primarily works on new construction projects, the work is performed to code using all new wiring and components. However, if you intend to work on existing buildings, either commercial and residential, your work will be connected to older electrical work that was not performed by your company. If a fire takes place near work you have performed, the owner will likely make a claim against you. This is where liability insurance protects you.

Electrical Contractor insurance usually includes coverage for the following:

  • General Liability (protection for your business from legal action against you)
  • Tools and Equipment (damage and theft)
  • Installation Floater (covers wiring and other materials while in transit or at the worksite prior to installation)

An installation floater policy covers personal property installed, fabricated, or erected by a contractor. It covers the property until the installation work is accepted by the purchaser or when the insured’s interest in the property installed ceases.

Most Canadian insurance providers recommend having at least one million dollar coverage policy. If you are a larger company with a high number of employees, you may want to consider at least a two million dollar policy.

Don’t Forget Commercial Auto Insurance

Getting to and from job sites is a necessity for electricians, making commercial auto insurance key for your small business. Unlike a personal auto policy, commercial auto insurance is designed to protect the company vehicle, the employees who are driving it, and the passengers who may be inside. Some small business owners are under the incorrect impression that they’ll be covered by their personal auto policies while using their vehicles for commercial purposes. Unfortunately, there are some important differences between the two that can leave you vulnerable to risks and potential losses.

Get the Right Policy for Your Electrical Contracting Operations

Coverage for electrical contractors and electricians is a unique area of business insurance, and can thus be confusing and difficult to find the ideal policy for your company. The expert brokers at AIM are here to help you find the ideal coverage, ensuring that you can continue providing high-quality electrical work confidently and safely.

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