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Why You Need Electrical Contractors Insurance

By September 29, 2020 No Comments
InRoads Blog, Electrical Contractor Insurance-Happy electrician working at a fuse box using testing equipment

If you’re a licensed electrician working in the province of Ontario, you know that you are a highly trained professional. Electrical contractors that only use licensed master electricians, along with supervised apprentices, rarely need to make insurance claims. This means that insurance policies are typically not expensive. It is a requirement to have a valid electrician insurance policy in place to apply for a business license. InRoads 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 on-site, can also reduce 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 will be working 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, is it quite likely the owner will make a claim against you. This is where liability insurance becomes essential.

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 is an insurance policy that 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 your job sites is a necessity for electricians, making commercial auto insurance important 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.