What is Electrical Contractor General Liability Insurance?
At FramerBrown.Com we want our clients to be comfortable with the ins and outs of their affordable Electrician’s General Liability Insurance policy. It is our strong belief that you must at a bare minimum obtain General Liability Insurance to protect your business and your customers. The policy offers you and your client’s protection from any covered claim for any injuries or damages to third party persons or property as a result of your work. This also includes legal fees to defend your business from any covered claim.
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Is Electrical Contractor Insurance Mandatory?
In most States, General Liability Insurance for Electricians is not mandatory. There are however a number of states that do require a license. Usually one of the requirements is to have General Liability Insurance. However, even in these States or Municipalities that are required are ridiculously low. In Washington for example the minimum requirement is only $250,000.
At FarmerBrown.Com we do not sell policies with these low limits. We generally sell only sell affordable General Liability Insurance For Electrical Contractors policies with at least $1 Million in coverage. The reason behind this is not to make more commission. The reality is that cost of having $1 million in coverage in most cases less than $50 dollars a year. It makes no sense to purchase the lower limits.
How Much Does Electrician’s General Liability Insurance Cost?
Getting cheap General Liability for Electrician’s is easy with FarmerBrown.Com. Whether you are new in business or a well-established business we have a policy for your needs.
The most important factor in determining your premium are as follows:
The more money the business makes means the more work you do. The more work you do the greater a chance of a claim.
In certain situations, you may run into potential situations that require you to have greater liability limits. The higher the limit needed to meet contractual terms will cause an increased premium. It is important to remember that these costs should be passed on to the customer.
Just like your auto insurance, the more claims you have the more you will have to pay for your Electrical Contractor General Liability Insurance.
Location of Business
Where your business is located has a great impact on premiums. States that have more regulation cause premiums to rise.
|Revenue/Sales||Policy Limits||Annual Premium|
|$100,000 Per Year||$1 Million/$2 Million||$697.00|
|$300,000 Per Year||$1 Million/$2 Million||$903.00|
|$500,000 Per Year||$1 Million/$2 Million||$1,475.00|
|$1 Million||$1 Million/$2 Million||$2,867.00|
|$3 Million||$1 Million/$2 Million||$5,899.00|
THESE RATES ARE JUST INDICATIONS FOR ILLUSTRATION PURPOSES AND NOT AN OFFER TO SELL INSURANCE. YOUR ACTUAL RATE WILL BE SUBJECT TO A COMPLETED APPLICATION AND UNDERWRITING REVIEW
What Does Electrical Contractor General Liability Insurance Cover?
General Liability Insurance for Electrician covers your business from any covered claims that you may cause to third parties. This includes damage to property and persons. You will also have coverage for the costs of attorney’s fees required to defend you for any covered claims. Imagine having to pay these costs out of pocket. It is not hard to imagine these costs could put you out of business.
Workers’ Compensation Costs For Electricians?
To determine workers’ compensation employees are grouped into classification codes based on their job. These codes were developed by the National Council on Compensation Insurance. There are almost 800 class codes to help insurance companies categorize employees. Once your class code is determined, such as 5190 for electricians your premium is developed.
Workers’ Compensation is based on three major factors. They are as follows:
It is a number assigned by NCCI based upon employees’ job descriptions. Jobs with higher risks such as roofers have a higher rate for worker’s compensation than the rate for an office worker.
The amount of payroll is a major factor in determining the premium.
This is your safety record being assigned a numerical value. The base number is 1. The more accidents you have the higher the number gets. Conversely, the better your safety the lower the number gets.
Two examples of how these works are below. One with a good safety record and one with a poor safety record and $100,000 of payroll.
Since the cost of Workers’ Compensation for Electricians is generally around $2.65 per hundred dollars of payroll. The calculations are as follows:
Good safety record.$100,000 of payroll X $2.65 X .8 experience modification=$2,120 annual premium
Bad safety record.$100,000 of payroll X $2.65 X 1.2 experience modification= $3,180 annual premium
These examples show clearly that safety pays, as the safe contractor pays $1,000 less per year.
Why Do I Need Electrical Contractor General Liability Insurance?
You need to have affordable General Liability Insurance for Electrician to protect your business, family, and customers. In some states, it is required to obtain a license. Also, most municipalities will require proof of insurance before a permit is issued. Save yourself some headaches and get insured today.
Types of Insurance for an Electrician?
FarmerBrown.Com can offer comprehensive insurance solutions for electrical contractors. In addition to offering cheap General Liability Insurance for Electricians we offer the following types of insurance for your business:
What Are Electrical Contractor General Liability Insurance Requirements?
There are no national minimum requirements for Electrical Contractor General Liability Insurance. However policy limits of $1,000,000 single claim $2,000,000 aggregate will be sufficient in 95% cases.
In the case, there are specific contractual terms that require you have greater limits we can obtain these for you.
Does an Electrical Contractor’s General Liability Insurance Cover My Employees?
The answer to this question is no. General Liability Insurance for Electrical Contractors only covers injuries or damages to third parties. Employees are not covered. For coverage, you need to purchase Worker’s Compensation insurance.
What Are The Key Benefits Of Choosing FarmerBrown.Com For Electrical Contracting General Liability Insurance
We have experienced team members that can analyze and recommend the appropriate coverage for your Electrician’s Insurance needs. Whether you are a one-man show or have 40 employees all business assets need to have some type of protection. Protecting your valuable physical assets with quality affordable insurance coverage, we are here to help customize that coverage to your needs.
- Our team members are professional and knowledgeable and able to help you choose the perfect policy for your Electrical Contractor Insurance needs.
- Being an Electrician requires specialized a policy to cover your unique needs
- Flexible agents to work on your time schedule.
- We provide easy online payment options.
- We are licensed in all 50 States to offer Electricians Insurance.
- Same day service in most cases.
- “A” Rated insurance companies that pay claims quickly.
FarmerBrown.Com has the capability to provide quotes for the hard to place risks and get you insured quickly and conveniently. We have the experience to analyze and recommend the appropriate affordable Electrical Contractors General Liability Insurance Coverage. Call now to speak with a knowledgeable agent. Our experts can review your needs and get you the proper coverage your business deserves. They will make sure you have the coverage you need at the best price for you. Best of all, you can get a free, no-obligation quote in minutes
By selecting the best policies from the nations top insurance carriers FarmerBrown.Com is able to deliver coverage that represents the greatest value for you. You can obtain an Electricians Insurance quote by clicking above, or by calling (888) 973-0016 today to find out more about the extensive insurance programs offered by FarmerBrown.Com to reduce premium cost and risk. Let the FarmerBrown.Com team make obtaining insurance coverage trouble-free. Get the coverage you need at the rates you deserve.
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What Are The Key Benefits Of Choosing FarmerBrown.com For your Insurance Quotes
A Broader Choice
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We pride ourselves on our knowledgeable and professional sales team, who prioritize attention to detail and are ready to take claims 24/7
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