Insurance is important for nearly all professionals, but especially for those working in risk-prone industries, such as electricians. When you work as an electrician, having public liability insurance is a must. Find out more about the importance of public liability insurance below.
What is public liability insurance?
Public liability insurance is part of commercial general liability insurance. It aims to cover the cost of third party bodily injury and property damage claims. The cost of such claims may include medical expenses, property repairs, and legal fees, including defense and court fees. Public liability insurance generally covers third party incidents that occur at your place of business or a client’s home.
Why do electricians need public liability insurance?
Electricians need public liability insurance to protect themselves from the financial ramifications of a lawsuit. One claim of bodily injury or property damage could be enough to bankrupt your entire operation if you don’t have public liability coverage. Further, the fact that public liability insurance can apply to third party damages that occur in clients’ homes makes it especially important for electricians who often visit the homes of their customers.
What other insurance coverage do electricians need?
A few other types of insurance coverage that electricians may benefit from include:
- Commercial property insurance: Commercial property insurance protects your electrician’s office or other place of business, as well as any business-related contents. More specifically, it may protect your physical property from damage caused by an insured loss, like water damage, fire, theft, windstorms, vandalism, etc.
- Tools and equipment insurance: With tools and equipment insurance, your insurer may cover the cost of repairing or replacing your electrician tools or equipment if they are damaged or lost due to an insured peril, like fire.
- Commercial auto insurance: Commercial auto insurance might be necessary if you use your car for commercial purposes, such as to travel to and from customers’ homes. Commercial auto insurance coverage may feature third party liability coverage, comprehensive coverage, uninsured automobile coverage, and more.
How the cost of electrician insurance is calculated
Now that you know what public liability insurance for electricians is, you might be wondering how much it costs. The cost of electrician insurance varies based on several factors. Insurance companies are likely to consider the following when calculating your insurance premium:
- The size and location of your electrician business
- Your business’s annual and projected gross revenue
- The tools and equipment owned or leased by your business
- Your years of experience as an electrician
- The types of services offered (commercial, residential, or both)
- The number of employees you have
- The coverages, policy limits, and policy deductibles you choose
Contact ALIGNED for more information on public liability insurance for electricians
Interested in buying public liability insurance for your electrician business? Contact ALIGNED. One of our knowledgeable and friendly brokers can explain how public liability insurance works and inform you of other important coverage types for electricians. Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.
