According to research, 10% of all professional electricians are self-employed. Does this include you?

If so, you know that this setup can come with a ton of perks, including the ability to set your own hours and schedule. Yet, there are also myriad steps to take to ensure your business can find continued, long-term success.

One of those is investing in electricians insurance. With so much at stake, it’s critical to protect your name and safeguard your self-built enterprise. Today, we’re sharing 8 reasons why insurance is essential.



1. Discerning Clients Require It

What is one of the most important reasons to make sure to cover your electrical business with an insurance policy? Customers are more discerning than ever before. So this is one of the top questions they’ll ask any electrician.

Nobody wants an uninsured electrician to work on their home or business, Clients know that they’re assuming the liability if something goes wrong. Given that the average hospitalization cost for an electrical accident is around $750,000, this isn’t a risk they’re willing to take.



2. Protects Your Business Against Financial Loss

Would your fledgling business be able to weather the storm if you experienced a major personal injury incident while working on-site? What if you caused extensive damage to a homeowner’s property?

The reality is that electrical work routinely ranks as one of the top-25 most dangerous careers in the world. At any given minute, there is the opportunity for wires to get crossed and devastating damage to ensue.

Electrical contractors insurance helps ensure that you aren’t left shouldering the financial burden if this is the case. Otherwise, you could face extensive medical, legal and compensatory charges that you’re unable to meet.



3. Protects Your Employees

You might be self-employed, but you likely have others on your team who assist you on job sites. Are you prepared to pay for their medical bills if they get hurt on the job?

Worker’s compensation insurance gives you the peace of mind that your employees are covered, no matter what happens. Not only will you be able to pay for any medical treatments they required, but you can also help cover their wages while they take time off from work.

Despite following industry guidelines and adhering to strict safety measures, accidents still happen and it’s always best to be prepared.



4. Electricians Insurance Protects Against Accidents and Errors

Especially in the commercial realm, your electrical work could have a vast influence on a large number of people. For instance, consider how many restaurant workers depend on a properly-running industrial refrigerator in the kitchen.

What would you do if the power suddenly cut out during their busiest part of the week? As the last person who worked on the machine, you’d be the first person they’d call. Without insurance, that’s one voicemail you wouldn’t want to receive.

Not only could you be responsible for covering their lost business, but you could also be forced to help pay for any food they had to throw out in response to the outage. These are the kinds of costs that can snowball and put your business in jeopardy.

The good news is that professional liability insurance can help protect you against being held fully responsible for errors and omissions associated with your professional services.



5. Covers Your Vehicle, Too

When you think of protecting your electrical business against damage, you might think of the obvious risks associated with your job. Yet, you’re not just exposed when you’re installing light fixtures or circuits.

You’re also at risk each time you sit behind the wheel of your work vehicle. Could you cover the cost of damages if you accidentally rear-ended another driver on your way to a job? If you’re covered by commercial auto insurance, you don’t have to worry about a small fender-bender costing your company in a major way.

In most cases, your business auto insurance will provide liability coverage to help pay for any injuries or damages that your commercial vehicle causes. In addition, you may also be able to add comprehensive or collision coverage to ensure a greater degree of protection.



6. Electricians Insurance Safeguards Against Negligent Clients

Unfortunately, one of the most difficult parts of owning your own business is dealing with frustrating clients. Despite your professionalism, you may come in contact with someone who refuses to pay all or a portion of their bill.

Rather than take the issue to court and lose money on a trial, you can rely on business interruption coverage to help float your business while you navigate this setback.



7. Keep Your Good Name

It only takes one incident as an uninsured contractor for you to lose your good name around town. As a self-employed professional, your longevity and reputation hinge on your ability to provide expert service that your clients can trust.

In fact, many homeowners and business owners will request to see a copy of your insurance policies before agreeing to work with you. Coming up empty-handed could mean losing out to your competitor.



8. Policies Are a Cinch to Find

Are you looking for a low-cost, quick approach to electricians insurance? In today’s Digital Age, the process is as simple as a few clicks!

When you partner with a company like Farmer Brown, you can take the guesswork out of this step, along with the legwork. We’ll provide instant online quotes for the coverage you need. We’ll even help you shop for the best policy.

When it’s this simple, there’s no reason not to pursue it!



Invest in Electricians Insurance Today

Are you ready to officially protect your self-operated electrical business? If so, you don’t have to go it alone. It’s no secret that the insurance industry is full of jargon, dense documentation and confusing terms.

Thankfully, we’re experts in insurance coverage, from electricians insurance to general liability policies. Get in touch today to tell us a little about your business needs. We are ready to help you find the best policy and coverage available!

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.