How Much Is Business Insurance
for Electricians & Electrical Contractors?

Electricians need insurance in order to apply for business licenses, but it also protects their business from the cost of lawsuits, Workers' Comp settlements, and other unpredictable expenses. How much does electrician insurance cost? Below, we've compiled cost estimates for two types of electrical businesses:

  • Electrical installers. Work includes installing, maintaining, and repairing electrical wiring, equipment, and fixtures while ensuring that work complies with relevant codes.
  • General electrical services. Work covers many areas, such as customer service and administrative work, maintenance, and installation. Maintenance duties include inspecting electrical equipment, replacing worn parts, and completing regulatory requirements.

These cost estimates are based on the real costs that other small businesses pay for their electrician's insurance coverage.

The quotes below are only estimates. Your premiums may vary depending on the size your business, its location, and other factors.

HOW MUCH IS
General Liability Insurance?

How Much Is General Liability Insurance?

In order to qualify to do electrical work in many states, you're required to have General Liability Insurance when you apply for a contractor's or electrician's license. GL Insurance covers the cost of lawsuits over electrical fires, problems with installation, injuries, damage to a client's home, and other problems customers might have with your work.

General Liability Insurance for electrical services businesses typically costs $361 to $674.

Average Premiums, Deductibles and Limits on General Liability Insurance Policies for Electricians & Electrical Contractors
Name USD

Median policy premium:

$361 - $674

Per claim limit:

$1,000,000

Policy limit:

$2,000,000

Median policy deductible:

$1,000

To see how the cost of General Liability Insurance for electricians and electrical contractors compares with other industries, visit Insureon's General Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a Business Owner's Policy?

How Much Is a Business Owner's Policy?

Electricians can save money on their insurance by purchasing a Business Owner's Policy (or BOP), which bundles two business insurance policies together for one lower premium. BOPs contain General Liability (see above) and Property Insurance. In addition to covering your lawsuit risk, BOPs have coverage for tools, maintenance equipment, and other electrical supplies.

BOPs for General Electrical Service Businesses

Business Owner's Policies typically cost $500 to $1,006 for general electrical service businesses.

Average Premiums, Deductibles and Limits on BOP Insurance Policies for General Electrical Service Businesses
Name USD

Median policy premium:

$500 - $1,006

Per claim limit:

$1,000,000

Policy limit:

$2,000,000

Median policy deductible:

$500

BOPs for Electrical Installers

BOPs typically cost $500 to $948 for electrical installation businesses.

Average Premiums, Deductibles and Limits on BOP Insurance Policies for Electrical Installers
Name USD

Median policy premium:

$500 - $948

Per claim limit:

$1,000,000

Policy limit:

$2,000,000

Median policy deductible:

$500

HOW MUCH IS
a Commercial Auto Insurance?

How Much Is Commercial Auto Insurance?

If you got in an accident on the way to service a client's home, your electrical business would have to pay vehicle repairs, medical costs, and possibly legal expenses if you're sued. Fortunately, Commercial Auto Insurance protects electricians from these costs.

Commercial Auto Insurance for General Electrical Service Businesses

A Commercial Auto Insurance policy for general electrical service businesses typically costs $1,703 to $3,149.

Average Premiums, Deductibles and Limits on Commercial Auto Insurance Policies for General Electrical Service Businesses
Name USD

Median policy premium:

$1,703 - $3,149

Median policy limit:

$1,000,000

Median policy deductible:

$500

Commercial Auto Insurance for Electrical Installers

For electrical installation companies, Commercial Auto Insurance typically costs $1,672 to $4,377.

Average Premiums, Deductibles and Limits on Commercial Auto Insurance Policies for Electrical Installers
Name USD

Median policy premium:

$1,672 - $4,377

Median policy limit:

$1,000,000

Median policy deductible:

$500

HOW MUCH IS
Workers' Compensation Insurance?

How Much Is Workers' Compensation Insurance?

Most states require electrical contractors to have Workers' Compensation Insurance for any employees they hire. Workers' Comp can pay for an electrician's medical expenses if they are injured at work. Whether it's a back injury, electrical shock, or other injury, Workman's Comp can cover your employees' medical bills and pay for wages they miss while they can't work.

Workers' Compensation Insurance for General Electrical Service Businesses

To meet their Workers' Comp requirements, general electrical service companies typically pay $2,135 to $4,857 in insurance premiums.

Average Premiums, Deductibles and Limits on Workers' Compensation Insurance Policies for General Electrical Service Businesses
Name USD

Median policy premium:

$2,135 - $4,857

Per claim limit:

$100,000

Median policy limit:

$500,000

Median policy deductible:

None

Workers' Compensation for Electrical Installers

Workers' Comp for electrical installation professionals usually costs between $1,760 and $3,241.

Average Premiums, Deductibles and Limits on Workers' Compensation Insurance Policies for Electrical Installers
Name USD

Median policy premium:

$1,760 - $3,241

Per claim limit:

$100,000

Median policy limit:

$500,000

Median policy deductible:

None

To see how the cost of Workers' Compensation Insurance for electricians and electrical contractors compares with other industries, visit Insureon's Workers' Compensation Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a Surety Bond?

How Much Is a Surety Bond / License and Permit Bond?

When you apply for an electrician's license or building permit, make sure to check your local laws to see if you're required to have a License or Permit Bond. These bonds pay the local government when an electrician's poor work leads to a lawsuit against the government office that licensed them.

Surety Bonds for General Electrical Service Businesses

To get bonded, general electrical service companies typically pay $200 to $1,257 for License / Permit Bonds.

Average Premiums and Limits on Surety Bonds for General Electrical Service Businesses
Name USD

Median policy premium:

$200 - $1,257

Median policy limit:

Varies.

Surety Bonds for Electrical Installers

License Bonds or Permit Bonds for electrical installation companies typically start at $150. 

Average Premiums and Limits on Surety Bonds for Electrical Installers
Name USD

Median policy premium:

$150

Median policy limit:

Varies

FREE QUOTES
on Electrical Contractor Insurance

Quotes Custom Built for Electricians and Electrical Contractors

If you'd like a more detailed cost estimate for your business insurance, contact insureon. Submit an online insurance application and one of our insurance agents specializing in electrician's insurance will handle your application.

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