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What insurance does an electrical contractor need?
Most electrical contractors need general liability, workers' comp, commercial auto and tools coverage to start. Bonds, an umbrella, E&O and a few specialty policies follow as your contracts and your work get bigger.
The short answer
An electrical contracting business usually carries four core policies. General liability handles injuries and property damage you cause to others. Workers' comp covers your crew. Commercial auto covers the vans and trucks. An inland marine policy protects tools, test equipment and wire stock.
From there, the list follows your contracts and your trade mix. License bonds come with licensing in many states and cities. Umbrella limits and performance bonds come with bigger GC and public work. E&O matters when you design or size systems, and pollution or cyber coverage fills gaps a standard policy leaves open. The right package for a two-van residential shop looks nothing like the one for an industrial contractor, so start with the work you actually do.
General liability
Injuries and property damage to others, including completed work that fails later. General liability for electricians
Workers' comp
Required in most states once you have employees; priced on payroll by class code. Workers' comp for electricians
Commercial auto
Vans, box trucks and bucket trucks, plus crew members driving on company business. Commercial auto for electricians
Tools and equipment
Meters, cameras, pullers, benders, rented lifts and copper on the shelf. Tools and equipment insurance
Umbrella
More liability limit for contracts that ask for $2 million and up. Umbrella insurance for electricians
License and permit bonds
Bonds your state board or city may require to license you or issue permits. Electrical contractor license bonds
Performance and payment bonds
Surety for public and large commercial electrical packages. Performance and payment bonds
Installation floater
Gear and materials on the jobsite until the owner accepts the work. Installation floater for electricians
Professional liability (E&O)
Design-build, load calculations and system design errors. Professional liability for electricians
Business owner's policy
A package of liability, shop property and business income for smaller shops. BOP for electricians
Pollution liability
Retrofit and renovation exposures that general liability often excludes. Pollution liability for electricians
Service bonds and crime
Theft and dishonesty protection when crews work in occupied buildings. Service bonds and crime coverage
Cyber liability
Breaches, ransomware and payment fraud for connected-device and network work. Cyber liability for electricians
Coverage by type of electrical work
Frequently asked questions
What's the minimum insurance an electrician needs to start?
Is general liability enough for an electrical contractor?
Do electricians need professional liability?
When does an electrical contractor need an umbrella?
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