How Much Business Insurance Do Electrical Contractors Really Need?

Nate Jones, CPCU, ARM, CLCS, AU
Jan 13
2 min read

Electrical contracting is a high-risk profession. Between potential job-site injuries, property damage, and errors in installation, having the right level of business insurance is essential to protect your company and employees.

But how much coverage is actually necessary? Understanding your risks, job types, and contract requirements can help you choose policies that fully protect your business without overpaying. Wexford Insurance can provide expert guidance and fast quotes tailored to electrical contractors.

Key Factors Determining How Much Insurance You Need

Type of Work Performed – Residential jobs may need less coverage than commercial or industrial projects with higher liability exposure.
Business Size and Revenue – Higher revenue and more employees generally require higher coverage limits.
Contract Requirements – Many clients or government contracts specify minimum insurance amounts.
Risk Exposure – Jobs involving high-voltage systems, large installations, or hazardous environments increase risk and insurance needs.
Tools and Vehicles – High-value tools and company vehicles may require additional coverage limits.

Essential Insurance Policies for Electrical Contractors

Electrical contractors usually need a combination of policies to be fully protected:

General Liability Insurance – Covers bodily injury, property damage, and completed work.
Workers’ Compensation Insurance – Covers employee injuries on the job; required in most states.
Commercial Auto Insurance – Protects trucks and vans used for transporting tools or equipment.
Professional Liability (Errors & Omissions) – Covers mistakes, faulty designs, or installation errors.
Tools and Equipment Coverage – Protects expensive tools from theft, loss, or damage.
Umbrella Insurance – Provides extra liability protection above your primary policies.

Choosing the right coverage limits depends on your business size, risk level, and client requirements.

Wexford Insurance — **REQUEST A FREE QUOTE**

How to Determine Your Ideal Coverage Limits

Review past claims and incidents – Identify areas of potential exposure.
Consult clients and contracts – Some contracts may require specific coverage limits.
Assess tools, vehicles, and equipment value – Include replacement costs in coverage planning.
Work with an experienced agency – Wexford Insurance specializes in electrical contractor policies and can help determine appropriate coverage.