Electrical contractors are one of the primary pillars of modern infrastructures. They ensure that the homes and businesses have the right amount of energy and light that is required to function.
From commercial properties to private properties, electrical contractors are required everywhere.
Moreover, with the ever-present demand, it is much easier to figure out why each day, more and more individuals are opting for an electrical contractor as a profession.
While some try to start by working with an existing business, some decide to choose the life of a private electrical contractor.
Regardless of the profession you pick, it is essential to ensure that you have electrical contractor insurance.
Electrical contractors insurance is essential for any business or individual. Without electrical contractors insurance, your business will have trouble finding work. Moreover, it also jeopardizes your business.
Since electricity is one of the riskiest mediums to work with, a single mistake can endanger life and property.
So, here are the four most critical reasons that highlight why electrical contractors insurance is necessary for your business.
4 Reasons to Book Your Electrical Contractors Insurance
Protect your business from unhappy clients
One of the primary reasons why you should opt for electrical contractors insurance as it helps you to save yourself from unhappy clients.
Let us draw you a picture. You are working on a commercial project for electrical installation. A few days later, you receive a call from the client who is furious because the power went off during business hours due to electrical failure, for which they had to face financial loss in their business.
Now, the furious client is threatening to sue your business and drag you to court. As the contractor, you will be liable to answer and pay up for the loss.
But, when you have an electrical contractor’s insurance, you don’t need to worry at all, as the liability coverage will save you from paying money from your pocket.
Moreover, having liability insurance will also build a reputation for your business among your clients.
The next best thing about having electrical contractors insurance is the reputation and sense of reliability that comes along with it. If your business is covered under insurance, you will be able to gain more customers than a business that doesn’t have insurance.
The contractor’s insurance shows that your business has the capability to repay any losses that might have happened due to an electric failure, as discussed in the point above.
If you don’t have insurance, it will be a matter of concern for clients as they will believe that any accidents that happen on-site will need to cover the expense.
Protecting your employees
Electricians need to deal with an extensive amount of risks as one minor mistake can endanger their life or career. At times, regardless of how cautious you are, an unforeseen circumstance can lead to serious injury to your employees.
But, who is going to pay for their treatment/loss? Since they are employed under you, and the accident occurred on-site, you will be responsible for paying the fees. But, when you are covered under electrical contractors insurance, the medical costs and replacing lost incomes will be covered by the insurance company.
Moreover, the insurance will also cover the equipment and tools of your business in the event they get damaged or get stolen.
Settling contract disputes
Sometimes, customers tend to not pay the money at once. Though they will have to eventually pay the money, the pause in payment causes a disruption in the cash flow. And since there will be workers working for you, you will need to pay their wage or salary regardless if you have been paid.
So, to protect yourself in such an event, you should apply for electrical contractors insurance that also has business interruption coverage.
Understanding Electrical Contractor Insurance Cost
Now you know the importance of electrical contractor insurance, but the next thing you need to know is the cost.
The electrician insurance cost will vary depending on the location of your business. The average electrical contractor insurance cost is as follows:
- Worker’s Compensation Cost: The most common cost for worker’s compensation insurance is around $3,275 each year across most countries.
- General Liability Cost: The general liability cost starts from $540 a year, roughly
- Contractor Equipment Coverage: $490 on average each year.
- Commercial Auto Insurance Cost: $1,700 per year. More to cover incidents like theft and vandalism.
- Professional Liability Insurance Cost: An average of $1,060 per year.
The electrician insurance cost will not be exactly the figures mentioned above as the cost is decided based on several factors. However, the reasons to opt for electrical contractors insurance is exactly as mentioned above.
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