Electrician Business Insurance Cost & Quotes (2026)
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Electrician insurance typically costs between $5,300 and $30,000 annually for a $500K operation with $200K in payroll. That wide range comes down to two factors: what coverage you need and where you operate.
Every electrical contractor needs two core policies. General liability (GL) covers third-party property damage and bodily injury claims, while workers’ compensation (WC) protects employees and is mandatory in most states once you hire.
But here’s what most electricians don’t realize: your zip code can cost you more than your claims history.
An electrical contractor in Oregon might pay $5,300 annually for full coverage. That same contractor, doing identical work with the same safety record, would face over $30,000 in New York. Location alone creates a $25,000 gap.
Why the massive swing?
General liability scales with revenue and varies modestly by state, typically running 0.6% to 1.3% annually. A $500K electrical operation pays somewhere between $3,000 and $6,500 depending on carrier and location.
Workers’ compensation is where it gets painful. Your Class Code 5190 rate depends almost entirely on which state you’re in:
Oregon: $1.16 per $100 of payroll New York: $6.55 per $100 of payroll
On $200,000 in payroll, that’s $2,320 versus $13,100, a 465% difference for pulling the same wire and wiring the same panels.
The silver lining: Our analysis of 1,200+ quotes shows that strategic shopping can cut GL premiums by 34% to 39%. Some electricians save even more. This guide shows you exactly where those opportunities exist, state by state.
Understanding the full scope of coverage options is essential before comparing costs. Learn more about electrician insurance to ensure you’re getting comprehensive protection.
Electrical contractors performing mixed mechanical work should understand related classification impacts. Water heater installations may trigger plumbing insurance cost considerations under different codes. HVAC electrical connections could affect HVAC insurance pricing structures. Appliance servicing might invoke appliance repair coverage costs with separate classifications.
These benchmarks come from ContractorNerd’s analysis of electrician insurance quotes. See methodology
General Liability Premium Ranges:
National Average
0.6% to 1.3% of annual revenue
Favorable Markets
0.6% to 1.1% of annual revenue
Potential Savings
34% to 39% of current GL premium possible when moving from average to favorable market rates
Workers’ Compensation Rates
Class 5190
Electrical
$1.16 to $6.55 per $100 payroll
Six Major Cost Drivers
Classification Codes
GL code 92478 and WC code 5190 set your base rates; proper classification can save thousands annually
Years in Business
Primarily affects GL rates; electricians with 10+ years typically pay less than those under 5 years
Subcontractor Usage
Impacts both GL (uninsured sub exposure) and WC (payroll audits)
Business Size
GL scales with revenue; WC scales with payroll. High-efficiency operations benefit from better ratios
Claims History
GL claims affect rates for 3-5 years; WC claims impact your experience modification factor
Geographic Location
Creates 465% WC variation alone; GL varies by litigation environment and carrier competition
Electrician General Liability Insurance Rates
Electrical Work Within Buildings (GL Code 92478)
Most electrical contractors perform interior wiring, panel installations, and system upgrades up to 480 volts. This classification covers residential service, commercial tenant improvements, and light industrial installations, with rates varying based on project mix.
Revenue Level
National Average
Favorable Rate
Potential Savings
High % of Revenue
$150,000
$1,660
$1,020
39%
0.68% to 1.4%
$500,000
$4,540
$2,990
34%
0.60% to 1.3%
$1,000,000
$8,750
$5,550
37%
0.56% to 1.2%
*Potential savings represent the possible reduction when moving from average to favorable market rates
GL Risk Advantages
for Residential Work
Controlled indoor environments reduce weather-related claims
Direct homeowner relationships enable clear communication
Limited catastrophic loss potential from standard 120/240V systems
Predictable completed operations exposure
GL Risk Challenges
for Residential Work
Arc flash incidents from panel work
Property damage from accidental wire strikes
Fire claims from faulty connections discovered later
Tool theft from service vehicles
GL Risk Advantages
for Commercial Work
Controlled jobsite access reduces public exposure
General contractor oversight of safety protocols
Clear project specifications minimize scope disputes
Newer building systems reduce legacy wiring complications
GL Risk Challenges
for Commercial Work
Higher voltage systems (277/480V) increase arc flash severity
Business interruption claims from power failures
Multi-trade coordination complications
Contractual liability from indemnification clauses
GL Risk Challenges
for Residential Work
Water damage claims from fixture failures
Mold allegations from undetected leaks
Limited public exposure during off-hours work
Lower average claim severity than new construction
for Commercial Work
for Residential Work
Controlled jobsite access reduces public exposure
General contractor oversight of safety protocols
Clear project specifications minimize scope disputes
Newer building materials reduce corrosion claims
Workers’ Compensation Note: Electrical contractors typically classify under 5190 with rates varying dramatically by state from $1.16 to $6.55 per $100 payroll. Those performing significant HVAC controls or low-voltage work may have split classifications.
Electrician Insurance Cost by State
50-State Interactive Heat Maps – General Liability & Workers Comp Analysis
Most electrical contractors operate across both residential service and commercial construction markets. The data below reflects a typical blend of these operations, with rates varying based on the specific mix of work performed.
Electrician Insurance Cost Metrics by State
Explore insurance costs and savings opportunities across the United States
Show State-by-State Data
| State | GL Premium Range | GL Savings % | GL Competitiveness | WC Rate (Class 5190) |
|---|---|---|---|---|
| Alaska | 0.40% - 0.60% | 10.00% | 0 | $2.81 |
| Alabama | 0.40% - 1.10% | 38.60% | 90 | $3.56 |
| Arkansas | 0.50% - 0.90% | 23.70% | 50 | $1.33 |
| Arizona | 0.60% - 0.90% | 10.80% | 20 | $2.61 |
| California | 0.80% - 2.10% | 22.40% | 10 | $2.86 |
| Colorado | 0.30% - 1.10% | 62.20% | 20 | $1.85 |
| Connecticut | 0.80% - 1.30% | 25.00% | 50 | $3.54 |
| Delaware | 0.60% - 1.10% | 21.30% | 30 | $3.00 |
| Florida | 0.70% - 1.50% | 19.30% | 10 | $4.13 |
| Georgia | 0.50% - 1.10% | 47.70% | 100 | $3.25 |
| Hawaii | 0.30% - 0.60% | 42.30% | 0 | $3.97 |
| Iowa | 0.50% - 0.90% | 19.40% | 50 | $3.74 |
| Idaho | 0.30% - 0.80% | 46.90% | 50 | $3.09 |
| Illinois | 0.80% - 1.40% | 26.90% | 30 | $2.57 |
| Indiana | 0.60% - 1.00% | 21.40% | 50 | $1.37 |
| Kansas | 0.60% - 0.90% | 23.10% | 50 | $1.95 |
| Kentucky | 0.70% - 1.10% | 9.80% | 20 | $2.12 |
| Louisiana | 0.60% - 2.10% | 60.70% | 10 | $3.60 |
| Massachusetts | 0.50% - 1.00% | 26.20% | 50 | $3.24 |
| Maryland | 0.30% - 0.80% | 51.70% | 90 | $2.99 |
| Maine | 0.50% - 0.90% | 21.60% | 30 | $2.24 |
| Michigan | 0.50% - 0.90% | 26.30% | 30 | $1.96 |
| Minnesota | 0.40% - 1.00% | 41.90% | 80 | $3.92 |
| Missouri | 0.60% - 1.10% | 26.10% | 50 | $2.55 |
| Mississippi | 0.50% - 1.10% | 42.60% | 50 | $3.28 |
| Montana | 0.40% - 1.20% | 58.80% | 30 | $3.12 |
| North Carolina | 0.20% - 0.70% | 57.10% | 80 | $3.14 |
| North Dakota | 0.60% - 1.10% | 27.90% | 40 | $1.35 |
| Nebraska | 0.50% - 0.90% | 30.60% | 50 | $2.70 |
| New Hampshire | 0.60% - 1.00% | 12.50% | 50 | $3.46 |
| New Jersey | 0.90% - 1.70% | 41.30% | 80 | $4.98 |
| New Mexico | 0.70% - 1.10% | 16.30% | 30 | $3.17 |
| Nevada | 0.50% - 1.30% | 27.10% | 10 | $1.90 |
| New York | 1.70% - 3.10% | 41.10% | 0 | $6.55 |
| Ohio | 0.40% - 0.80% | 29.40% | 80 | $1.96 |
| Oklahoma | 0.30% - 1.20% | 58.30% | 40 | $3.18 |
| Oregon | 0.50% - 1.00% | 20.50% | 80 | $1.16 |
| Pennsylvania | 0.80% - 1.50% | 36.50% | 40 | $2.97 |
| Rhode Island | 0.70% - 1.30% | 35.10% | 80 | $2.83 |
| South Carolina | 0.60% - 1.80% | 59.40% | 100 | $3.94 |
| South Dakota | 0.60% - 1.30% | 35.20% | 40 | $3.24 |
| Tennessee | 0.30% - 0.90% | 52.90% | 100 | $2.52 |
| Texas | 0.60% - 1.30% | 26.00% | 50 | $2.50 |
| Utah | 0.60% - 0.90% | 23.10% | 40 | $1.82 |
| Virginia | 0.20% - 0.70% | 52.00% | 90 | $2.01 |
| Vermont | 0.40% - 0.90% | 29.40% | 10 | $3.50 |
| Washington | 0.30% - 1.20% | 43.50% | 10 | $2.18 |
| Wisconsin | 0.50% - 0.90% | 27.90% | 40 | $3.39 |
| West Virginia | 0.50% - 1.20% | 27.70% | 40 | $1.30 |
| Wyoming | 0.50% - 0.90% | 14.70% | 10 | $2.01 |
The four heat maps above provide instant visual insight into electrical contractor insurance costs across all 50 states:
1. GL Premium Ranges – Visualize how general liability costs as a percentage of revenue vary nationwide, from as low as 0.6% in competitive markets to over 1.3% in high-cost states. Darker shades indicate higher premium ranges, helping you benchmark your current costs against regional averages.
2. GL Savings Opportunities – Discover potential premium reductions available through strategic shopping, ranging from 34% to over 39% depending on your state. This map reveals where shopping efforts yield the greatest returns.
3. Carrier Competition Levels – Understand market dynamics affecting your negotiating power. States with higher competition percentiles offer more carrier options and aggressive pricing, while lower percentiles indicate limited options requiring specialized broker relationships.
4. WC Rates per $100 Payroll – Compare workers’ compensation costs for electrical Code 5190 across all states, from Oregon’s nation-leading $1.16 to New York’s $6.55. This dramatic 465% variation significantly impacts total labor costs and competitive positioning.
What Does Electrician Liability Insurance Cover?
Understanding GL Limit Structures
General liability limits significantly impact both premium costs and protection adequacy. Most electrical contractors choose between three standard limit configurations:
$500K
Per Occurrence
$1M Limits
Aggregate
Suitable for smaller residential service work
Typical premium impact: Base rate
May not meet commercial contract requirements
$1M
Per Occurrence
$2M Limits
Aggregate
Industry standard for most electrical contractors
Typical premium impact: No increase from base rate
Meets most residential and light commercial requirements
$2M
Per Occurrence
$4M Limits
Aggregate
Required for large commercial projects and municipal work
Typical premium impact: Moderate to significant increase from base rate
Often achieved through primary plus umbrella coverage
Deductible Strategies
Deductible selection provides premium flexibility while requiring careful cash flow consideration:
$0 Deductible
Maximum insurer responsibility from first dollar
Appropriate for new businesses with limited reserves
Premium impact: Base rate
$2,000 Deductible
Eliminates nuisance claims while preserving major loss protection
Provides minor to modest premium reduction
Requires maintaining operating reserves
Specialized Electrical Endorsements
Faulty Workmanship Coverage
Available as a GL endorsement with sublimits, this coverage addresses allegations of improper wiring, code violations, or design errors. Critical for contractors providing load calculations, panel designs, or design-build services beyond pure installation work.
Tools & Equipment Coverage
While often available as a GL endorsement for hand tools, contractors with significant equipment investments should consider separate inland marine policies. Electricians carrying meters, oscilloscopes, thermal imaging cameras, and conduit bending equipment typically need substantial tool coverage.
How to Lower Your Electrician Insurance Cost
Strategic Shopping Timeline
General Liability Renewal Approach
Begin shopping 75-90 days before renewal to allow proper underwriting and negotiation. Submit applications to 5-7 carriers simultaneously, emphasizing NFPA 70E compliance and safety certifications. Avoid last-minute shopping which limits options and prevents premium financing arrangement if needed.
Workers’ Compensation Timing
Start WC shopping 60 days prior to renewal, particularly when seeking alternative rating factors or retro programs. With Code 5190 rates varying 465% by state, carriers need time to properly evaluate your operations. Coordinate WC renewal with GL when possible to maximize account credits.
Workers’ Compensation Optimization Strategies
Classification Code Management
Proper employee classification can generate substantial savings. An electrician with $200,000 payroll in New York at $6.55 per $100 pays $13,100 annually. The same payroll in Oregon at $1.16 per $100 costs only $2,320. Document time allocation through daily work logs and separate payroll records by voltage level and project type.
Payroll Segregation Tactics
Separate clerical employees from field classification for significant savings. A $40,000 clerical salary saves thousands when properly classified versus Code 5190 field rates. Maintain detailed records showing physical separation from electrical operations. Estimators and project managers who never perform field work may qualify for lower-rated codes.
Experience Modification Management
Focus on claims under $10,000 which disproportionately impact mod calculations. Implement return-to-work programs reducing lost time claims. Consider deductible programs to eliminate frequency-driven mod increases. A 0.80 mod versus 1.20 mod saves 33% on manual premium.
Premium Audit Preparation
Organize records by classification code before audit. Exclude overtime premium from payroll calculations. Document subcontractor certificates of insurance. Proper audit preparation prevents unexpected additional premiums and supports classification arguments.
General Liability Cost Reduction
General Liability Renewal Approach
Formalized safety programs with weekly toolbox talks, documented training, and written procedures support premium credits. Focus on arc flash prevention, lockout/tagout procedures, and PPE compliance given electrical-specific exposures. OSHA 10/30 certifications and formal apprenticeship programs demonstrate sophistication carriers reward.
Subcontractor Management
Require certificates showing appropriate GL limits from all subs. Implement written agreements transferring liability. Track insurance compliance through dedicated software. Uninsured subcontractor exposure can significantly increase GL premiums.
Claims Management
Report claims immediately regardless of perceived merit. Investigate and photograph all incidents thoroughly. Never admit liability or promise payments. Maintain 5-year claims history documentation for underwriting credits.
Contract Review Protocols
Avoid blanket hold harmless agreements accepting others’ negligence. Limit liquidated damages to reasonable amounts. Require mutual waiver of subrogation on larger projects. Poor contracts create uninsurable exposures affecting renewals.
Methodology
Data Source
These insurance cost benchmarks come from ContractorNerd’s proprietary analysis of electrical contractor insurance quotes across all 50 states, representing over 1,200 pricing data points. As a licensed insurance agency, we have direct access to actual carrier pricing from A-rated insurers.
What the Numbers Represent
- General liability premiums: Actual market rates shown as a percentage of revenue, reflecting low-end and high-end pricing (0.6% to 1.3% nationally)
- Workers’ compensation rates: Current manual rates for NCCI classification 5190 (Electrical Wiring Within Buildings), before experience modifications or schedule credits
- Revenue tiers: $150K, $500K, and $1M annual revenue
- Savings calculations: Difference between national average and favorable market rates
Assumptions
- Standard coverage forms ($1M/$2M GL limits)
- Clean claims history (no claims in past 3 years)
- No significant endorsement modifications
- Standard electrical operations (interior wiring, panel installations, system upgrades up to 480V)
Limitations
These rates are for informational and comparative purposes only. Your actual premium will depend on your specific business characteristics, claims history, location, and carrier underwriting. Get a personalized quote for accurate pricing.