Electricians and electrical contractors residing in the state of Kansas provide invaluable services installing, repairing, and maintaining electrical systems in residential, commercial, and industrial settings across the region. However, working with electricity carries significant risks that make having adequate insurance coverage absolutely vital to protect electricians’ businesses, assets, licenses, and livelihoods. This comprehensive guide examines the key factors influencing insurance costs for electrician businesses of all sizes operating in Kansas. It also provides illustrative premium ranges for small, medium and large electrical contractor firms based on revenues, number of employees, and other characteristics unique to the profession and jurisdiction. Additionally, it summarizes typical costs and recommended limits for the various additional insurance policies beyond just general liability, workers compensation, and surety bonds that prudent electrical contractors in the state require.

For electricians in Kansas, having the proper insurance protection for electricians is crucial. This typically includes liability protection for electricians to safeguard against third-party claims and workers’ comp coverage for electricians to cover employee injuries sustained while on the job.

Key Factors Influencing Insurance Costs for Electricians in Kansas

Insurance rates for electrician businesses in Kansas depend on several important variables:

Services Provided: Electricians performing more complex, hazardous work involving high voltage systems, large industrial equipment, or fire alarm installation will generally pay higher premiums than contractors focused on more basic residential rewiring, lighting, appliance and low voltage installations. Firms also offering electrical design, engineering and power distribution services may need to secure professional liability insurance to cover errors in their technical work that could cause client losses.

Location: Insurance costs can vary dramatically across different cities and counties within Kansas based on geography, local risk levels, regulatory environment, and market competition. Operating in more isolated rural areas typically means fewer insurer options and higher premiums. Having a place of business in regions with more severe weather events, hail, tornadoes or flooding results in higher property and liability rates. Locating in areas with higher theft, vandalism and property crime will also drive premiums upward.

Years in Business: New electrical contractor businesses are seen as substantially higher risk and are charged significantly increased rates by insurers until they build up a strong claims history, safety record, satisfied customer base and prove themselves financially stable. Electrical firms that have been profitably operating for 10+ years often finally qualify for the lowest premiums insurers offer. Established contractors are rewarded with lower rates for demonstrating resilience.

Revenue Size: As an electrical firm’s annual revenues grow year over year, whether it be from $500,000 to $750,000 or $5 million to $10 million, they inherently take on more overall projects and risks raising their general liability and workers compensation exposure. Once certain revenue milestones are met, substantial premium increases kick in as they surpass insurer rating thresholds. Generally speaking, the higher the gross annual revenues, the higher the insurance premiums required.

Safety Record: Electricians with past insurance claims for significant injuries, property damage, lawsuits or license issues pay markedly higher premiums for years afterwards. Those able to implement and document consistent safety protocols, employee training programs, equipment maintenance regimens, and operate incident and injury-free reap the rewards of lower insurance rates for years into the future. Past losses definitely impact future costs.

Premium Modifiers: Electricians or electrical company owners with personal credit issues, bankruptcies, criminal records or other red flags can sometimes get tagged with risk modifiers or surcharges by insurers that increase their costs across all coverage lines. Maintaining excellent business and personal credit and clean backgrounds prevents these premium add-ons that penalize risky financial histories.

Project Size & Type: Contractors taking on larger-scale high budget electrical projects have greater exposures should an incident occur. Industrial, commercial and new housing development work is riskier than residential rewiring. Insurers evaluate the typical project size and types electrical firms perform when rating and pricing policies.

Overview of Cost Illustration for Electrical Businesses in Kansas

To provide an overview of typical insurance costs for electrician businesses of varying sizes operating in the state of Kansas, here we illustrate approximate premium ranges for small, medium and large electrical contractors based on their distinctive characteristics including revenue, number of employees, risk profiles and other attributes unique to the electrical profession and region.

It is critical to note that actual premiums can vary substantially from these ballpark figures based on an individual firm’s specific risk attributes, safety record, services provided, project types performed, business longevity and many other parameters. These numbers are simply provided for illustration purposes and to set general expectations. Prudent electrical contractor businesses can often secure rates at the low end of these illustrative premium ranges by implementing rigorous and documented safety protocols, maintaining excellent business and personal credit, operating for 10+ years claims-free, carrying proper limits, and working with specialized insurance advisors who know how to secure them the best carrier terms.

Small Electrical Contractor Firm Profile:

  • $150,000 Annual Revenue
  • Sole Proprietorship
  • Owner with 10+ years Experience
  • 1 Additional Employee
  • Electrician & Residential Rewiring Services
  • No Past Claims
  • Strong Safety Protocols
  • Clean Personal Credit Histories

General Liability Insurance

Typical Annual Premium: $1,400

Low End Premium: $900

High End Premium: $2,300

Workers Compensation Insurance

Typical Annual Premium: $1,100

Low End Premium: $800

High End Premium: $1,800

Surety License Bonds

Typical Annual Premium: $150

Low End Premium: $50

High End Premium: $250

Medium Electrical Contractor Firm Profile:

  • $500,000 Annual Revenue
  • LLC
  • Owner with 15+ years Experience
  • 3 Additional Employees
  • Light Commercial & Residential Services
  • No Past Claims
  • Documented Safety Protocols
  • Excellent Business & Personal Credit

General Liability Insurance

Typical Annual Premium: $3,900

Low End Premium: $3,000

High End Premium: $5,700

Workers Compensation Insurance

Typical Annual Premium: $3,200

Low End Premium: $2,400

High End Premium: $5,200

Surety License Bonds

Typical Annual Premium: $150

Low End Premium: $50

High End Premium: $250

Large Electrical Contractor Firm Profile:

  • $1,000,000 Annual Revenue
  • Corporation
  • Owner with 20+ Years Experience
  • 5 Additional Employees
  • Commercial & Industrial Services
  • No Past Claims
  • Stringent Safety Program
  • Strong Business & Personal Credit

General Liability Insurance

Typical Annual Premium: $7,500

Low End Premium: $6,400

High End Premium: $10,700

Workers Compensation Insurance

Typical Annual Premium: $5,300

Low End Premium: $3,700

High End Premium: $8,100

Surety License Bonds

Typical Annual Premium: $150

Low End Premium: $50

High End Premium: $250

Overview of Additional Common Insurance Coverages

Beyond just general liability, workers compensation, and license bonds which tend to make up an electrical contractor’s key foundational insurance coverages, most electrical businesses in Kansas require several other important insurance policies to comprehensively protect their company and assets:

Commercial Auto Insurance: This covers liabilities and damage involving company vehicles used for business purposes like work trucks, fleet vans and autos. Typical annual premiums range from approximately $1,500 – $3,500 per vehicle depending on factors like vehicle type, driver records, liability limits carried and more. Higher limits are recommended for contractors hauling expensive equipment regularly.

Inland Marine (Tools & Equipment) Insurance: This specialized coverage protects electrician tools, equipment, machinery and inventory against theft and damage when on client job sites or in transit between locations. Typical annual premiums range from about $250 – $750 depending on total value of equipment insured, deductibles and limitations. Most policies have caps around $10,000 requiring scheduling add-ons for higher value equipment.

Commercial Property Insurance: This safeguards electrical contractor buildings, offices, warehouses, storage yards and other business properties against losses and damage from fires, floods, theft, vandalism and more. Typical annual premiums range from approximately $500 – $2,000 based on property values, locations, deductibles and limits. Discounts are available for modern systems like alarms and sprinklers.

Employment Practices Liability Insurance: This coverage protects against claims like harassment, discrimination, wrongful termination, retaliation and other employment practice allegations. Annual premiums for small to mid-size electrical firms normally range from about $800 – $3,000+ depending on team size, revenue, state laws, litigation climate and other risks. Larger or high-risk contractors can easily spend $10,000 or much more annually on EPLI coverage alone. It fills a key gap left by general liability policies.

Cyber Liability Insurance: This increasingly important coverage protects against costs related to data breaches involving sensitive customer information, ransomware attacks, computer hacking incidents and electronic theft. For small to mid-sized electrical businesses, annual cyber liability premiums typically run from about $400 – $1,500 depending on revenue size, client types, security protocols and extent of sensitive data retained. Larger firms with healthcare clients or robust online operations can spend substantially more for higher limits of protection.

Umbrella Liability Insurance: This provides contractors with additional liability coverage above and beyond the limits on their underlying general liability, auto, employers liability and other policies. It fills gaps in coverage towers when losses exceed primary policy limits. Adding $1 million in extra protection via an umbrella policy generally runs $600 – $1,200 in annual premiums for small to mid-size electrical firms based on their underlying limits, exposure risks, and other factors. Larger contractors often secure $5 million or more in umbrella coverage.

Getting the Right Insurance for Your Electrical Business

It’s critically important for electricians in Kansas to work with an independent insurance advisor who specializes in contractor coverages, has experience working with electrical firms specifically and has access to top specialty insurance carriers familiar with the trade’s unique risks and challenges. Unlike a captive agent representing just one insurance company, an independent agent can properly assess your operations then secure multiple quotes through their network of electrical insurer contacts in order to find the optimal combination of protection, price, and service for you.

Be sure to thoroughly discuss the details of your services provided, target client types, growth objectives, risk exposures, safety protocols, loss controls, vehicle use and all other relevant aspects of your electrical contracting business so they can custom tailor a comprehensive insurance portfolio designed to protect against the myriad hazards inherent in working with electricity and operating a local Kansas contractor firm. With an expert in your corner, you’re far more likely to secure adequate coverage at competitive rates. DIY insurance purchasing often leads to gaps in protection that you can’t afford. The right agent pays for themselves.


This extensive guide examines the key factors influencing insurance costs for electrician businesses of all sizes operating across the state of Kansas. It provides ranges of typical premiums electrical contractors can expect to pay based on their revenues, number of employees, services offered, business longevity and other important attributes that affect pricing. Additionally, it summarizes the common additional coverages like commercial auto, employment practices liability, cyber and inland marine policies prudent electrical firms need beyond just general liability, workers comp and bonds. Insurance is essential for mitigating risks when working with electricity. Partnering with a savvy insurance advisor secures Kansas electricians tailored coverage at competitive rates so they can continue safely powering the region.