An electrician’s job is very tough. The work requires an extremely high degree of technical skill as well as a lot of experience. As well, there are substantial physical qualifications that only certain individuals meet. Finally, like all owners, they must be effective salespeople and have excellent customer service skills.
It takes a special kind of person to be a successful electrician, and it takes a special kind of electrical contractors insurance to protect these businesses. While there are certain kinds of policies that every electrical contractor should have, individual needs vary significantly. So, you need a partner who helps you make the right choices.
Liability Insurance
Electrical contractors spend most of their workdays on other people’s property. Accidents happen. As a result, many people will not hire uninsured contractors. Liability not only protects you in the event of an unintentional loss. It also legitimizes your business in the eyes of your potential customers. That’s particularly important for newer or smaller contractors. Owners probably need separate liability policies to insure against theft and other losses of property, tools, or inventory. In some cases, these policies may also protect against business interruption-related losses.
Errors and Omissions
Electrical contracting jobs often involve very tight deadlines and pressure-packed situations. In these environments, even the most experienced contractors make mistakes. E&O insurance, which is also known as professional liability insurance, covers claims related to negligence or other related matters. Once again, many businesses will not hire uninsured contractors. So, a good E&O policy gives you an advantage over some of your competitors.
Vehicle Insurance
To save money, many electrical contractors use their personal vehicles for work. If that’s the case, your auto insurance policy may not cover claims that occur while you’re on the job. Insurance companies define “on the job” very broadly, and they are likely to deny claims if there is any commercial aspect to the trip whatsoever. That could even include driving a vehicle that has your company logo on the door. 95 percent of car accidents occur because of driver error. That could be your error or the other driver’s mistake.
Cyber Liability Insurance
Do you think a physical-related rob like electrical contracting is immune from hacking and cyber-crime? Think again. If you have a website, you are a target for hackers. Many of these individuals don’t want money. They simply want to make a statement at your expense. If hackers want money, they usually target POS hardware with hard-to-detect malware. After a multi-year legal battle, Target finally paid $18.5 million to settle this kind of claim. Without cyber liability insurance, the legal fees and settlement money come out of your pocket. Given all these costs, it’s little wonder that most businesses never reopen after a cyber attack.
Keeping a residential or commercial electrical system running properly is what you do. An insurance company’s job is to protect your business from liability claims which, in many cases, are beyond your control. To stay in business longer and concentrate on what matters, partner with a business insurance company today.
