Electrician insurance is essential, yet many business owners struggle to find electrician liability insurance tailored for their needs. No more.
At ContractorNerd, we make electrician liability insurance and business insurance tailored, easy, and data-driven. We’ve analyzed quotes for over 1,200 electrician insurance quotes from leading providers across all 50 states to provide transparency on what you need, what it should cost, and how to get quotes. Let’s get started with the basics.
Electrician Insurance – What Do You Need?
For electrician, securing the right coverage is crucial and needs change based on the size and stage of your business. Here’s a guideline:
- Solo Electricians:
- Electricians Liability (aka General Liability) insurance is fundamental, covering property damage and non-employee bodily injury. Many customers will ask if you’re licensed and insured; this is the insurance they are asking about. This covers “ongoing operations” liability – which includes damage or injuries caused by workers while present on job sites.
- Electricians should also include “completed operations” liability coverage on their General Liability policy. This protects against issues that arise after project completion, such as when faulty wiring causes electrical damage or fire in the customer’s building.
- Electrician license bonds are typically required by most states for obtaining an electrical license. They cost only a few hundred dollars and can be easily purchased online – it’s recommended to buy these bonds in three-year increments where available, as this protects against costly lapses while being relatively inexpensive.
- Tools and Equipment (aka Inland Marine) coverage is also recommended. This covers your specialized electrical tools and testing equipment which enable you to do good work.
- Contractor’s E&O (aka Faulty Workmanship) coverage protects you against claims arising out of faulty workmanship, materials or products.
- Commercial Auto coverage is needed if you have a van or truck you use exclusively for work.
- Electricians Liability (aka General Liability) insurance is fundamental, covering property damage and non-employee bodily injury. Many customers will ask if you’re licensed and insured; this is the insurance they are asking about. This covers “ongoing operations” liability – which includes damage or injuries caused by workers while present on job sites.
- Small Electrical Business (2-3 Employees):
- Workers compensation is required when you hire employees (not subcontractors)
- Commercial property is important to protect workshops, equipment storage areas, and offices.
- Umbrella Insurance (or higher limits on your Electrician Liability) should be considered as your business grows in revenue and project count.
- Established Electrical Business:
- Installation Floater covers materials, equipment and property in transit to or stored at job sites awaiting installation – critical for electricians who handle expensive electrical panels, generators, or specialty lighting systems that need transportation and on-site storage before final installation.
- Employment practices liability insurance (EPLI) to protect owners against potential lawsuits from employees.
Electrician Liability Insurance – aka General Liability
If there was a single coverage critical for all Electricians, this is it. Electricians need this insurance because your work involves many risks every day – live wires, high voltage equipment, working in confined spaces, heights, etc. Types of claims commonly faced include:
- Property Damage: Accidental damage to a client’s building, electrical systems, fixtures, appliances, etc.
- Bodily Injury: A client, visitor or bystander getting hurt due to electrical hazards or work activities.
- Defective Products: Lawsuits over installed electrical components or equipment that turns out defective. (Add-On)
- Completed Work: Lawsuits over electrical issues from past completed jobs, such as faulty wiring or improper installations. (Add-On)
Liability Limits for Electricians: Typically, $1 million per occurrence and $2 million aggregate. Experts recommend a minimum of $1 million for adequate protection. Upgrading from $500k to $1M coverage usually slightly increases premiums but provides significantly better defense.
Liability Premiums for Electricians: Ranges from 0.6% to 1.2% of annual revenue. Our summarized quote data below shows how these average premiums from leading carriers change by State. These average premiums are specific to the electrical contracting industry.
Key Factors Influencing Liability Premiums for Electricians:
- Revenue: Higher revenue implies more work and higher risk, leading to increased premiums.
- Policy Limits: Higher limits for specific projects or contracts may raise costs.
- Claims History: A history of frequent claims can result in higher premiums, similar to auto insurance.
- Location: States with stricter regulations may have higher insurance costs.
- Services Offered: Different electrical services have varying risks, affecting the insurance premium.
Electrician Insurance Cost – ContractorNerd’s Quotes Study
We crunched the numbers with over 1,200 Electrician Liability insurance quotes from leading carriers for electricians across different states and business sizes. While precise rates are highly individualized, average annual premiums for electrical contractors typically range from:
- Small Electrical Contractor ($150K Revenue, 1 employee) – $1,00 to $1,600
- Medium Electrical Contractor ($500K Revenue, 3 employees) – $3,000 to $4,000
- Large Electrical Contractor ($1M Revenue, 5 employees) – $5,800 to $8,000
New electrical contracting ventures starting without history may pay 25%+ more initially, as insurers need time to evaluate the risk. After successfully operating for several years without incidents, premiums often decrease, reflecting a more favorable risk assessment.
Below is a table summarizing typical general liability insurance premiums for electricians and electrical contractors based on a sample of states. Each scenario assumes the following for each revenue size:
- $150K Revenue: Assumes 1 owner with ~10% subcontracting costs and 5+ years of operating without claims.
- $500K Revenue: Assumes 1 owner and 3 employees with ~10% subcontracting costs and 5+ years of operating without claims.
- $1M Revenue: Assumes 1 owner and 5 employees with ~10% subcontracting costs and 5+ years of operating without claims.
| State | $150K Revenue | $500K Revenue | $1M Revenue | |||
| Avg. Premiums | % of Revenue | Avg. Premiums | % of Revenue | Avg. Premiums | % of Revenue | |
| California | $1,930 | 1.3% | $3,900 | 0.8% | $8,050 | 0.8% |
| Texas | $1,790 | 1.2% | $4,380 | 0.9% | $8,470 | 0.8% |
| Florida | $2,100 | 1.4% | $5,820 | 1.2% | $12,010 | 1.2% |
| Pennsylvania | $1,850 | 1.2% | $5,390 | 1.1% | $10,270 | 1.0% |
| Illinois | $1,980 | 1.3% | $5,320 | 1.1% | $10,070 | 1.0% |
| Ohio | $1,200 | 0.8% | $3,220 | 0.6% | $6,350 | 0.6% |
| Georgia | $1,390 | 0.9% | $3,610 | 0.7% | $6,840 | 0.7% |
| North Carolina | $1,230 | 0.8% | $3,080 | 0.6% | $5,970 | 0.6% |
| Michigan | $1,250 | 0.8% | $3,470 | 0.7% | $6,610 | 0.7% |
| Massachusetts | $1,530 | 1.0% | $4,180 | 0.8% | $8,020 | 0.8% |
We have also created guides for electricians in all 50 states, complete with local insurance rate information.
Make sure to look into all the different kinds of electricians that need insurance coverage.
Potential Savings on Liability Insurance for Electricians
Working with an independent insurance agent who specializes in Electrical Contractor Liability can yield some savings and better coverage terms. Below are real savings for electricians at various revenue levels – same business, different carrier. If your premium looks more in-line with the averages above, we suggest you get quotes to see if you’re able to get the same or better coverage with a more favorable rate.
| State | $150K Revenue | $500K Revenue | $1M Revenue | |||
| Favorable Rate | Potential Savings | Favorable Rate | Potential Savings | Favorable Rate | Potential Savings | |
| California | $1,280 | 33.7% | $3,240 | 16.9% | $6,630 | 17.6% |
| Texas | $1,070 | 40.2% | $2,740 | 37.4% | $5,840 | 31.1% |
| Florida | $1,580 | 24.8% | $5,060 | 13.1% | $11,080 | 7.7% |
| Pennsylvania | $1,120 | 39.5% | $4,290 | 20.4% | $7,260 | 29.3% |
| Illinois | $1,490 | 24.7% | $3,510 | 34.0% | $5,970 | 40.7% |
| Ohio | $630 | 47.5% | $2,390 | 25.8% | $3,650 | 42.5% |
| Georgia | $950 | 31.7% | $2,040 | 43.5% | $3,580 | 47.7% |
| North Carolina | $640 | 48.0% | $1,200 | 61.0% | $2,410 | 59.6% |
| Michigan | $840 | 32.8% | $1,930 | 44.4% | $3,010 | 54.5% |
| Massachusetts | $940 | 38.6% | $3,450 | 17.5% | $5,750 | 28.3% |
Workers’ Compensation Insurance for Electricians
Workers’ Compensation Insurance is essential for electricians, providing coverage for employee injuries or illnesses related to work. The premiums are based on job risk, classified by the National Council on Compensation Insurance (NCCI) into class codes. Electrical contractors often fall under code 5190, with rates usually between $1.80 to $3.90 per $100 of employee payroll annually.
WC Limits for Electricians: These are often unlimited but can vary according to state regulations.
WC Rates for Electricians: Between $1.80 and $3.90 per $100 of payroll.
Key Factors Affecting WC Premiums for Electricians:
- Class Codes: Group employees by job type and risk; higher risk means higher premiums. Electricians commonly use code 5190.
- State Regulations: States dictate workers’ compensation laws, influencing benefits and baseline rates. Geographic differences in living and healthcare costs also affect premiums.
- Experience Modifier: Reflects your safety record, starting at 1.0 and adjusting based on claims history. More incidents result in higher modifiers and premiums.
- Payroll Size: Calculated as (payroll / $100) * rate * experience modifier, with larger payrolls leading to higher premiums.
This insurance is typically mandatory if you have employees. It covers employee medical expenses, rehabilitation, lost wages, and even death benefits in case of job-related injuries or illnesses. For employers, it also provides legal coverage and compensation in case of employee lawsuits related to occupational injuries or illnesses.
Most and least expensive states for Electrician Workers Compensation Insurance:
| State | Premium per $100K Payroll |
| New York | $6,550 |
| New Jersey | $4,980 |
| Florida | $4,130 |
| Hawaii | $3,970 |
| South Carolina | $3,940 |
| State | Premium per $100K Payroll |
| Oregon | $1,160 |
| West Virginia | $1,300 |
| Arkansas | $1,330 |
| North Dakota | $1,350 |
| Indiana | $1,370 |
If you’d like to see other state rates and try our calculator, check our guide on Workers Compensation Insurance for Electricians.
Additional Insurance Electricians Should Consider
Beyond the essential policies detailed above, here are additional insurance types electricians may need as their business grows:
Tools & Equipment Insurance (Inland Marine)
Inland Marine Insurance protects electrical tools, testing equipment, and gear during transit and at job sites against loss, theft, or damage. Annual premiums range from $200-$2,000, with policy limits of $5,000-$15,000+. Most policies have per-item limits (typically $5,000).
Contractors’ E&O Insurance
Protects against business mistakes and negligence claims in electrical work. Covers costs if clients claim faulty work, improper installations, or subpar service. Includes professional negligence claims, legal defense, and judgments. Annual premiums range from $50-$500, with policy limits of $10,000-$1M+.
Commercial Auto Insurance for Electricians
Commercial auto insurance protects work vehicles and covers liability from accidents during business operations. Personal auto policies don’t cover business use. Premiums range from $1,500-$3,050 per vehicle annually. Standard limits are $100K per person, $300K per accident, and $100K property damage, though higher limits ($500K-$1M) are recommended for comprehensive protection.
Bonds for Electricians
Bonds guarantee work quality and fulfill licensing requirements. Typical bond amounts range $5,000-$25,000, with electricians paying 1-3% as premium. Premium costs vary by credit score:
| Bond Amount | Excellent Credit | Good Credit | Bad Credit |
| $5,000 | $100 – $150 | $150 – $200 | $200 – $400 |
| $10,000 | $100 – $300 | $300 – $500 | $500 – $1,000 |
| $15,000 | $150 – $400 | $400 – $750 | $750 – $1,500 |
| $20,000 | $180 – $500 | $500 – $1,000 | $1,000 – $2,000 |
| $25,000 | $200 – $500 | $500 – $1,200 | $1,200 – $2,500 |
Requirements vary by state – California requires $25,000 bonds while Texas has no statewide mandate.
Commercial Property Insurance for Electricians
Commercial property insurance protects buildings and contents (tools, equipment, inventory) against fire, theft, vandalism, and weather damage. Essential for electrical businesses with workshops, storage facilities, or showrooms. Annual premiums range $1,000-$5,000, based on property value, location risks (disasters, crime), and building construction type.
Business Owner’s Policy (BOP) for Electricians
A Business Owner’s Policy bundles general liability and commercial property insurance. This can be a better option for businesses with physical locations, it covers customer injuries, property damage, business assets, and business interruption. Typically you will see lower premiums than separate policies but less flexibility. Premiums based on business size, location, claims history, and additional coverage added.
Commercial Umbrella Insurance for Electricians
An alternative to increasing your limits on your general liability policy is an umbrella policy. This type of insurance provides additional liability coverage, extending beyond the limits of your standard policies like general liability, auto liability, and employer’s liability. In the event of a substantial claim that surpasses the limits of your primary policies, umbrella insurance steps in, offering extra financial protection. Typically adds $1M coverage (up to $2M+ available). Annual premiums: $500-$1,000.
Employment Practices Liability Insurance for Electricians
Protects against employee claims of discrimination, harassment, wrongful termination, and other workplace issues. Annual premiums: $1,000-$5,000. Policy limits: $100,000-$1M.
Cyber Liability Insurance for Electricians
Protects against data breaches and cyberattacks, covering investigation, customer notification, credit monitoring, PR, and legal costs. Policy limits: $100K-$1M. Annual premiums: $300-$1,000.
Get Electrician Insurance from ContractorNerd
Our specialized network provides competitive quotes from leading insurance carriers, helping you find comprehensive coverage that fits your electrical contracting business needs. Drawing from our analysis of over 1,200 electrical contractors across all states, we’ve seen electricians save 20-50% on their liability premiums.
Get quotes today to see potential savings for your electrical business.