How Commercial Electricians Insurance Can Protect You
Sometimes the weight of an entire office building rests on your shoulders. As a commercial electrician, you’re responsible for the lifeblood of every operation in the buildings you service. And while we all make mistakes, for commercial electricians a simple miscalculation or blown fuse could mean thousands of dollars in downtime losses, or worse, in the case of electrical fires. Commercial electrician insurance brokered by ALIGNED can help protect you from liability and other risks that come with running an electrical contracting business.
Whether you’re a new company or an established electrical contractor considering your commercial electrician insurance options, this post is meant to shed some light on how commercial electrician insurance and commercial property can help protect your business and maybe even win you bigger contracts.
Potential Liabilities Commercial Electrician Insurance Can Protect You From
Consider doing the electrical work for a manufacturer or a restaurant done by commercial electricians. A short circuit or faulty wiring could mean expensive losses. For manufacturers, delays in production could mean the loss of a contract and/or penalties for late deliveries. For restaurants (and refrigerated warehouses) a loss of electricity means spoiled and wasted inventory and lost business while the dining room remains closed to diners. In these cases, clients have little choice but to pursue the commercial electrician for their losses, which is typically through the legal system.
While the above examples are quite common, potential liability doesn’t need to be as dramatic as those examples or as serious as an electrical fire. Simple errors could lead to delays in the final construction of a commercial building that could also lead to actionable losses.
How Commercial Electrician Insurance Can Protect You
With comprehensive commercial electrician insurance brokered by ALIGNED, your commercial electrician’s business can be protected from potential lawsuits that could bankrupt your company just in defence costs alone. Your commercial electrician insurance policy can provide coverage that includes:
- Losses sustained by your clients due to mistakes made on your behalf
- Legal defence expenses including lawyer’s fees and expert witness fees associated with allegations of negligence
- Lost revenue for time spent in court or at hearings
- Settlements paid out to end legal proceedings
- Property Damages awarded by courts at the conclusion of a trial
Keep in mind, a lawsuit doesn’t have to have merit to cost you money. Just to hire a lawyer and take time away from your commercial electrician’s business could cost your business a significant of money, which could be… money you don’t have. Commercial electrician insurance can protect you from having to pay out-of-pocket to respond to legal claims.
Specialty Coverages Commercial Electrician Contractors Need
Commercial General Liability Insurance – potential lawsuits may not only come from commercial electrician work. Protect yourself from liability including personal injuries and/or property damage, false advertising, and/or libel/slander with commercial electrician insurance coverage.
Commercial Property Insurance – much like a lawsuit, the insurance cost from a fire, flood, or windstorm could also push your commercial electrician’s company over the edge. Commercial property insurance policy can protect your building, equipment, tools, computers, office supplies, cash, and other assets in the event of a disaster.
Commercial Vehicle Insurance – every vehicle is required to be insured and only a commercial vehicle insurance policy will cover vehicles used for commercial electrician work.
Commercial Electrician Insurance and Commercial Surety Bonds – Win Bigger Contracts for Your Commercial Electrician Business
Having the right amount of commercial electrician insurance coverage from a recognized insurer could also help your company make the winning bid on more prestigious and lucrative public and private contracts. ALIGNED works with Canada’s top insurance companies in commercial electrician insurance coverage and also provides all the construction bonds your electrical contracting company needs to bid on those major contracts including:
- Contractor License Bond – required for some contractors to get licensed, contact us to find out if you need a CLB; provides financial protection to consumers.
- Bid Bond – used when a commercial electrician bids on a contract; guarantees the commercial electrician’s ability to complete the contract. (click the link for more info)
- Surety’s Consent Bond – guarantees the owner of the contract that if the commercial electrical contractor wins the bid, the issuer of the bond will issue the remaining bonds.
- Performance Bond – guarantees the owner of the contract that the commercial electrician’s contract will be completed as specified either by the original commercial electrical contractor or another. (click the link for more info)
- Labour and Material Payment Bond – issued together with a performance bond; guarantees payment to subcontractors and suppliers used by the commercial electrician.
- Prepaid Contractor License Bond– required to get a license; protects consumers and guarantees legal compliance by commercial electricians.
- Electrical Contractor’s License Bond – required to get a license; protects consumers and guarantees legal compliance by commercial electricians.
- Electrical / Gas Safety Act Bond – required to get a license; protects consumers and guarantees legal compliance of commercial electricians.
This is only a partial list, for the complete list, check out our Types Of Commercial Surety Bonds In Canada page under the “Commercial Surety Bonds for the Construction Industry” section.
What insurance covers electricians?
Commercial electricians insurance covers electricians against lawsuits and claims a third party might file because of the services or products they received. It also protects electricians against property damage and financial loss arising from risks during daily operations, such as a fire, equipment breakdown, theft, or a flood.
Insurance covers settlement awards, judgment, medical bills, and legal defence fees from third-party lawsuits and claims. It also covers repairs, loss of income, and damages from insured perils.
There are several insurance products electricians can include in their policy to provide comprehensive coverage against financial loss from different activities. Speak with one of our insurance specialists to discuss what you should include.
Do electrical companies have insurance?
Most regulations require electricians and electrical companies to have an insurance policy in order to get a business license.
For example, Ontario requires all companies, contractors, and subcontractors to have an electrician insurance policy. That’s because working as an electrician has many unique and potentially dangerous risks during and after the work is completed.
Do self-employed electricians need insurance?
Yes, self-employed electricians should have sufficient insurance coverage to protect themselves against the inherent risks of working with electricity and servicing clients. Electricity is crucial to many households and commercial and public sector operations and functionality.
Your clients depend on your expertise for everyday tasks to keep their homes and businesses running. You want to have comprehensive insurance to protect you against the many claims and lawsuits that can arise from injured or unsatisfied customers.
Should electricians have professional indemnity insurance?
Professional indemnity insurance is also called errors & omissions insurance. It protects electricians and other professionals against claims of errors, misconduct, breach of contract, loss of documents or data, monetary loss due to poor advice, and omissions because of the services they provide.
It also protects electricians against claims of negligence during their services or failure to deliver services as promised in the contract. An example of negligent acts, errors, and omissions includes failure to report dangerous electrical wiring on-site which causes an electrical fire.
Get ALIGNED With Commercial Electricians’ Insurance Brokered by Commercial Insurance Specialists
You know circuit breakers, residual current and circuit interrupters, we know how to protect businesses – including commercial electrician contractors. Contact an ALIGNED advocate to discuss your specific commercial electricians’ insurance needs or get a quote online in minutes.
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