When accidents like these occur, general liability insurance is designed to protect your electrical contracting business. This type of Electrician Liability Insurance Covers Claims made by your clients and injured third parties alleging bodily harm and/or property damage as a result of your work.
Every electrician requires “slip-and-fall” insurance to safeguard their company’s finances and reputation. Without it, you won’t be protected from claims of bodily injury or property damage, as well as the high legal defense and medical costs that come with them.
How can I obtain electrician insurance?
If you have your business information on hand, getting insurance as an electrician is simple. An insurance application will request basic information about your company, such as revenue and employee count. With Insureon, you can purchase a policy and obtain a certificate of insurance in three simple steps:
- Fill out a free online application
- Compare prices and policies.
- Pay for your policy and get your certificate.
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Insureon’s licensed agents work with top-rated U.S. providers to find coverage that is right for your electrical business, whether you work alone or employ others.
Is Electrician Insurance Necessary?
Electricians, like other tradespeople, face certain hazards in the course of their work. Accidents can and do happen, regardless of how experienced, an electrician is.
Would you be able to make ends meet if you were unable to work due to an accident? Could you cover the cost of defending yourself if a customer was injured as a result of your work? Would you be able to do your job if your tools were stolen from your vehicle?
If the answer to the preceding questions is “no,” it is prudent to have insurance in place. It will provide you with not only protection if something goes wrong, but also peace of mind.
Electrician Insurance Cost
Electricians’ insurance costs depend on your policy limits, your business risks, your equipment value, and other factors. Furthermore, estimated costs are based on policies purchased by Insureon customers.
The cost of general liability insurance for electricians
Electrical contractors pay a median monthly premium of $45 for general liability insurance or $540 per year. This policy also covers third-party bodily harm, third-party property damage, and advertising injuries.
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Electricians can frequently save money by purchasing a business owner’s policy (BOP), which combines general liability and commercial property insurance at a discounted rate. It safeguards your company’s assets while also covering common business risks.
- The average annual cost is $540.
- The policy has a $1 million per occurrence limit.
On Insureon’s general liability insurance cost analysis page, you can also learn how to save money on your policy, which coverage limits to choose from, and more.
Electricians workers compensation costs
The average monthly premium for electricians’ workers’ compensation insurance is less than $275, or $3,275 per year. This policy, which is required in almost every state for businesses with employees, can assist in covering medical expenses and lost wages due to work-related injuries and illnesses.
Learn how workers’ comp premiums are calculated and more on Insureon’s workers’ compensation insurance cost analysis page.
The cost of commercial auto insurance for electricians
Commercial auto insurance, which costs an average of $140 per month or $1,700 per year, covers the vehicles owned by your electrical company. It can assist in the payment of property damage and medical costs in the event of an accident, as well as financial losses caused by vehicle theft, weather damage, and vandalism.
- The average annual cost is $1,700.
- $1 million is the policy limit.
On Insureon’s commercial auto insurance cost analysis page, you can learn how coverage limits and other factors affect the cost of this policy.
Costs of contractor’s tools and equipment insurance for electricians
For contractor’s tools and equipment coverage, electricians pay a monthly premium of about $40, or $490 per year. This policy, which is also a type of inland marine insurance, assists in the repair or replacement of lost, stolen, or damaged tools and equipment.
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- The average annual cost is $490.
- $10,000 is the policy limit.
Electricians’ professional liability insurance premiums
Professional liability insurance costs about $90 per month, or $1,060 per year, on average for electricians. This policy, also known as errors and omissions insurance (E & O), defends electricians against client lawsuits alleging unsatisfactory, negligent, late, or incomplete work. Furthermore, for additional savings, an electrician may be able to combine professional liability insurance with a general liability insurance policy.
- The average annual cost is $1,060.
- The policy has a limit of $500,000 per occurrence.
- $1,750 in deductibles
On Insureon’s professional liability insurance cost analysis page, you can learn how to save money on your policy, which coverage limits to choose from, and more.
The cost of surety bonds for construction companies and contractors
Surety bonds cost an average of $8 per month, or $100 per year, for construction companies and contractors. A surety bond protects your client if you fail to meet the terms of a contract or other agreement.
- The average annual cost is $100.
- $10,000 surety bond
On Insureon’s surety bond cost analysis page, you can learn how to lower your premium, which bond amount to choose, and more.
Master Electrician Insurance
The Master Electrician’s license is the only category of the license issued by the state of Maryland. For many counties in the state, the master electrician’s license is a prerequisite to obtaining the county electrical license. Many local governments issue additional types of electrical licenses. All of these credentials are lower than those of a master electrician. Some jurisdictions, for example, may issue a “general electrician,” “limited electrician,” or “low voltage” license.
If you want to obtain a license other than a master electrician’s license, check with the local jurisdiction where you want to work to see if they offer a lesser license and what the requirements are. Not all jurisdictions provide a lower-level license.
Obtaining the Permit
Ready to get your license? Steps, Requirements, and Documents
- To be eligible to take the master electrician’s license examination, the applicant must have been regularly and principally engaged or employed in providing electrical services for all types of electrical equipment and apparatus for at least seven years under the direction and supervision of a master electrician or a similarly qualified employee of a governmental unit.
- With proof that the applicant has completed a formal course of study or professional training in electrical installation comparable to the required experience, the State Board may grant up to three years of credit toward the required experience. An applicant must pass the exam with a score of at least 70%.
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- Maryland has reciprocity agreements in place with Delaware, Virginia, and West Virginia. You do not need to take an exam to be licensed in Maryland if you are licensed in one of these three states and meet the other minimum qualifications. The requirements for obtaining a reciprocal license in Maryland can be found here. (For more information, click here.)
- Fill out the exam application, including personal information, a work experience worksheet, and any relevant education.
- A certificate of insurance demonstrating $300,000 in general liability and $100,000 in property damage insurance.
Maintaining Your License
Renewal and maintenance: keeping your license in good standing
Submit a renewal form and the applicable renewal fee. Furthermore, the State Board of Master Electricians requires 10 hours of continuing education before renewing your license. Of those 10 hours, you can take 5 to be online. On the Board’s website, you can find continuing education providers.
Purpose: Why the License is required?
The Maryland State Board of Master Electricians licenses and regulates individuals who provide electrical services in the state. The provisions of Title 6, Business Occupations and Professions, Annotated Code of Maryland, govern licensees. The state’s policy is to regulate those who provide electrical services or engage in the business of providing electrical services throughout the state in order to protect the citizens’ lives, health, property, and public welfare.
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The Board is not responsible for investigating complaints; that is the responsibility of the county or local subdivision.
Journeyman Electrician Insurance
If you want to work in the trades, you should understand what a journeyman is. Essentially, becoming a journeyman is a necessary step on the way to becoming a master craftsman or craftswoman. Follow along as we explain what a journeyman is and the requirements for becoming one, whether you want to be an electrician, plumber, or carpenter.
What exactly is a journeyman?
A journeyman is defined as a skilled worker who has completed an apprenticeship and certification program in a building trade or craft. The term “journeyman” dates back to the Middle Ages when workers’ guilds were just emerging.
There were three recognized ranks of tradespeople in these guilds: apprentices, journeymen, and masters. These classifications are still used by trade organizations today. While a “journeyman” blacksmith was once a common designation, the term is now more commonly applied to trades such as journeyman electricians, plumbers, and carpenters.
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Journeymen advance through the ranks through a combination of training programs, exams, hours worked, and licenses issued by the Department of Licensing and Regulation in each state. The requirements for licensure will differ depending on the state and trade.
Journeymen are authorize to work as subcontractors for master tradespeople. While journeymen have the qualifications to work independently, in most states, they are not allowed to own their own businesses until they reach master status. Many people who become journeymen do so in order to gain the hours and experience required to become master tradespeople and start their own businesses.
Journeyman Electrician Insurance
You’ll be a journeyman electrician once you’ve gained the experience, skills, and training required to work independently without supervision, but before you become a licensed master electrician. When you reach the level of a journeyman, you will be able to work on any electrical system without direct supervision from a master.
As a journeyman electrician, you will be able to form your own LLC or sole proprietorship and work for yourself as a self-employed journeyman electrician. However, before you start working on your own, you must obtain journeyman electrician insurance to protect your fledgling business.
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Journeyman electrician insurance will protect you in the event of a mishap while operating your own business. The cost of journeyman electrician insurance should be between $30 and $50 per month or $360 to $600 per year.
Sole Trader Electrician Insurance
You have the freedom to be your own boss and pursue your true passions as a sole trader. It also implies that you bear the brunt of a variety of responsibilities, such as workplace safety and insurance.
When it comes to sole proprietorship insurance, consider the following scenarios:
- You become ill or have an accident. If you are unable to work for an extended period of time, income protection can provide a steady stream of replacement income. If you are in a serious accident, personal accident insurance can help.
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- Interact with the public. When it involves people, the likelihood that you will be hold liable for any accidents or damage they cause increases. It is critical to have public liability insurance.
- You have workers. If you employ people, you are require by law to provide workers’ compensation.
How to Begin as a Sole Proprietor Electrician
Starting a business as a sole trader electrician is a simple and quick process. This is what you must do:
- Create a separate business bank account.
- Register with HMRC as self-employed.
- Make a decision on VAT
- Get sole proprietorship business insurance.
- Become a member of Part P Governing Bodies and Competent Person Scheme providers.
Frequently Asked Questions
What insurance covers electrician?
The insurance policy covers the employee’s rehabilitation costs, medical costs, and other expenses. It also covers his lost earnings as a result of his inability to work. When one of the employees causes damage to another person while driving, it helps secure the electrical business.
Do electricians have good insurance?
The average monthly premium for electrician workers’ compensation insurance is less than $275, or $3,275 per year. This policy, which is required in almost every state for businesses with employees, can assist in covering medical expenses and lost wages due to work-related injuries and illnesses.
Do self-employed electricians need insurance?
Electricians, whether working for a company or as self-employed individuals, require specialized insurance to protect them. Policies should include a variety of critical coverage options, such as public liability, employer’s liability, property, and contract work.
Why do electricians need insurance?
Electricians may require insurance coverage for all types of work. Sparkies are in high demand, whether they work in electrical construction or maintenance, but the job is not without risks. Managing the risks of electrical burns, welding hazards, and even extreme temperatures is all part of the job.