Nashville Electrical Contractor Insurance
Regardless of your experience as an electrical contractor, accidents can occur. That’s why an insurance policy is important to everyone in the contractor’s field, including electricians. With a relatively small premium each year, the insurance policy will protect your property from claims for property damage, personal injury, etc. arising from an accident.
If you obtain general liability insurance, for example, the cost of damages, settlement fees and also attorney’s fees will be covered by the company offering the insurance coverage.
This form of insurance is very important for electrical contractors, as they often come into contact with dangerous equipment that can easily cause debilitating injuries. In addition, even the simplest of errors while work is in progress can result in quite costly lawsuits.
So what is the average cost of insurance for electrical contractors?
Contractors of electricians pay considerable amounts for insurance than other business owners pay as a result of the hazardous nature of the work. For example, defective electrical work could result in damage to local appliances or injury to people entering the premises. However, the premium is still very affordable.
On average, an electrician contractor will pay $700 to $1,200 each year in insurance. Most insurance companies will accept payments in installments paid over 10 months.
There are some factors that will be considered by the company when setting a rate, but the most important factor is the size of the policy. With average electrician insurance coverage, you will be offered coverage of $500,000, $1 million or $2 million. Higher coverage needs mean more expensive premiums.
Again, rates will change depending on your operating condition. This is because in some states, courts are known to award higher damages in personal injury and property damage cases. Similarly, your company’s track record will be a factor, as the company will want to make sure they are getting the right amount based on the risk your business poses. Basically, recording accidents or lawsuits in the past means that you might have to pay 3-4 times the average premium.
How Insurance Works
Insurance is no longer a luxury for electrical contractors. This is because most customers do not allow a contractor to start working on their site without valid proof of insurance.
With an insurance policy, the cost of damages or settlement fees, as well as attorney’s fees, will be taken into account, but this cannot exceed the policy’s maximum. Therefore, with a $250,000 policy and a $500,000 settlement, you will have to get the additional $250,000. For this reason, electrical contractors who handle large projects are advised to pay a premium for as much coverage as possible. It’s always a fraction of what you could lose if a lawsuit goes against you!
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