Based on our analysis of over 1,200 electrical contractor insurance quotes nationwide, GL premiums typically range from 0.6% to 1.3% of annual revenue, with most established contractors paying between 0.8% and 1.1%. This variation reflects differences in specialization, experience levels, and state-specific market conditions.
For workers’ compensation, electrical contractors primarily fall under Class Code 5190 (Electrical Apparatus Installation/Service), with rates varying dramatically by state:
- National WC Range: $1.16 to $6.55 per $100 of payroll
- Median WC Rate: $2.86 per $100 of payroll
- Rate Variation: 465% difference between lowest and highest states
The potential savings through strategic shopping represents the difference between average market rates and competitive pricing available to qualified contractors. This potential savings ranges from 34% to 39% of current GL premium across most markets, with some states offering potential reductions exceeding 60% for contractors currently paying average rates.
Real Dollar Impact Example: For an electrical contractor with $500,000 in revenue:
- GL Premium Range: $3,000 to $6,500 annually
- Potential GL Savings: $1,020 to $2,535 when moving from average to competitive rates
- WC Costs (assuming $200,000 payroll): $2,320 to $13,100 annually depending on state
Six Major Cost Drivers for Electrical Contractors
- Classification Codes – Your GL class code 92478 (Electrical Work – Within Buildings) and WC code 5190 fundamentally determine base rates. Proper classification can mean thousands in annual savings.
- Years of Experience – Primarily impacts GL rates. Contractors with 10+ years experience typically see substantially lower GL premiums than those with under 5 years.
- Subcontractor Usage – Affects both coverages. Uninsured subs increase GL exposure dramatically, while proper certificates prevent WC audit surprises and additional premiums.
- Revenue vs Payroll Structure – GL premiums scale with revenue while WC scales with payroll. High-efficiency operations with better revenue-to-payroll ratios benefit from this distinction.
- Claims History – GL claims impact future premiums for 3-5 years. WC claims affect your experience modification factor, potentially creating major swings in rates.
- Geographic Factors – State regulations create WC rate variations of 465%, while GL varies based on local litigation environments, carrier competition, and regional claim patterns.
50-State Interactive Heat Maps – General Liability & Workers Comp Analysis
Electrician Insurance Cost Metrics by State
Explore insurance costs and savings opportunities across the United States
The four heat maps above provide instant visual insight into insurance costs across all 50 states:
- GL Premium Ranges - Visualize how general liability costs as a percentage of revenue vary nationwide, from as low as 0.2% in competitive markets to over 3% in high-cost states. Darker shades indicate higher premium ranges, helping you benchmark your current costs against regional averages.
- GL Savings Opportunities - Discover potential premium reductions available when moving from average to competitive rates, ranging from minimal in saturated markets to substantial in states with significant carrier competition. This map reveals where shopping efforts may yield the greatest returns.
- Carrier Competition Levels - Understand market dynamics affecting your negotiating power. States with higher competition percentiles (80-100%) offer more carrier options and aggressive pricing, while lower percentiles indicate limited options requiring specialized broker relationships.
- WC Rates per $100 Payroll - Compare workers' compensation costs for Code 5190 across all states, from Oregon's nation-leading $1.16 to New York's $6.55. This dramatic variation significantly impacts total labor costs and competitive positioning.
Understanding the full scope of coverage options is essential before comparing costs. Learn more about electrician insurance to ensure you’re getting comprehensive protection.
Rate Analysis for Electrical Work - Within Buildings (GL Code 92478)
Electrical Work - Within Buildings represents the core of most electrical contracting operations, encompassing interior wiring, panel installations, and system upgrades up to 480 volts. This classification applies to contractors performing residential service, commercial tenant improvements, and light industrial installations.
| Revenue Level | GL National Average | GL Favorable Rate | Potential Savings | Premium Range (% of Revenue) |
| $150,000 | $1,660 | $1,020 | 39% | 0.68% - 1.4% |
| $500,000 | $4,540 | $2,990 | 34% | 0.60% - 1.3% |
| $1,000,000 | $8,750 | $5,550 | 37% | 0.56% - 1.2% |
*Potential savings represents the difference between average market rates and competitive pricing available to qualified contractors with favorable risk profiles.
GL Risk Characteristics for Electrical Work - Within Buildings
Residential Service Work:
- Controlled indoor environments reduce weather-related claims
- Direct homeowner relationships enable clear communication
- Limited catastrophic loss potential from standard 120/240V systems
- Minimal coordination requirements with other trades
- Predictable completed operations exposure
Commercial Interior Work:
- Higher voltage systems (277/480V) increase arc flash severity
- Business interruption claims from power failures
- Contractual liability from construction agreements
- Multi-trade coordination complications
- Extended completed operations exposure on larger projects
Light Industrial Applications:
- Equipment damage during electrical upgrades
- Production downtime liability
- Specialized safety requirements
- Critical system redundancy needs
WC Considerations for Electrical Contractors
Electrical contractors typically qualify for Code 5190, with rates varying dramatically from $1.16 (Oregon) to $6.55 (New York) per $100 payroll—a 465% variation for identical work. Proper classification documentation and state-specific rules can provide opportunities for premium optimization within this code.
Geographic Cost Variations Across States
Workers' Compensation Rate Analysis by State
Workers' compensation rates for electrical contractors (Code 5190) vary dramatically based on state regulatory environments, medical costs, and legal frameworks. Understanding these variations is crucial for multi-state operations and expansion planning.
Five Lowest WC States for Code 5190:
- Oregon: $1.16 per $100 payroll - SAIF corporation provides stability
- West Virginia: $1.30 per $100 payroll - Monopolistic state fund
- Arkansas: $1.33 per $100 payroll - Recent reforms reducing costs
- North Dakota: $1.35 per $100 payroll - State fund efficiency
- Indiana: $1.37 per $100 payroll - Competitive market conditions
Five Highest WC States for Code 5190:
- New York: $6.55 per $100 payroll - High medical costs, complex regulations
- New Jersey: $4.98 per $100 payroll - Urban risks, litigation frequency
- Florida: $4.13 per $100 payroll - Fraud concerns, weather exposure
- Hawaii: $3.97 per $100 payroll - Geographic isolation, limited competition
- South Carolina: $3.94 per $100 payroll - Rural healthcare access issues
The 465% variation between Oregon ($1.16) and New York ($6.55) represents $10,780 annual difference per $200,000 in payroll—often exceeding total GL premiums.
Combined Insurance Cost Analysis: Five Most Affordable States
Based on $500,000 revenue and $200,000 payroll benchmarks:
1. Oregon
- GL Premium (0.6% of revenue): $3,000
- WC Cost ($1.16 × $200K ÷ 100): $2,320
- Total Annual Insurance: $5,320 to $6,820
Oregon's exceptional WC rate—lowest nationally at $1.16—more than compensates for moderate GL costs. The state-run SAIF corporation provides stable, predictable WC pricing while private GL carriers compete effectively. Portland's construction boom hasn't inflated rates due to effective market management.
2. Indiana
- GL Premium (0.8% of revenue): $4,000
- WC Cost ($1.37 × $200K ÷ 100): $2,740
- Total Annual Insurance: $6,740 to $8,240
Indiana combines low WC rates with competitive GL markets. The state's business-friendly environment attracts carriers while maintaining reasonable safety standards. Indianapolis and Fort Wayne markets show particular strength in carrier options.
3. West Virginia
- GL Premium (0.9% of revenue): $4,500
- WC Cost ($1.30 × $200K ÷ 100): $2,600
- Total Annual Insurance: $7,100 to $8,600
West Virginia's monopolistic state fund keeps WC rates exceptionally low despite challenging terrain and industrial exposure. GL markets remain competitive despite smaller population, rewarding contractors with clean loss histories.
4. Arkansas
- GL Premium (0.75% of revenue): $3,750
- WC Cost ($1.33 × $200K ÷ 100): $2,660
- Total Annual Insurance: $6,410 to $7,910
Arkansas achieves balance through recent WC reforms and stable GL markets. Little Rock's growth creates opportunities while rural areas maintain lower claim frequencies. The state's pragmatic regulatory approach benefits responsible contractors.
5. Utah
- GL Premium (0.75% of revenue): $3,750
- WC Cost ($1.82 × $200K ÷ 100): $3,640
- Total Annual Insurance: $7,390 to $8,890
Utah's slightly higher WC rate is offset by excellent GL markets and strong savings potential. Salt Lake City's construction boom drives carrier competition while maintaining reasonable loss ratios through effective safety enforcement.
Five Most Expensive Combined Insurance States
Based on $500,000 revenue and $200,000 payroll benchmarks:
1. New York
- GL Premium (2.4% of revenue): $12,000
- WC Cost ($6.55 × $200K ÷ 100): $13,100
- Total Annual Insurance: $25,100 to $30,100
New York's highest-in-nation WC rate combines with elevated GL costs to create challenging conditions. However, substantial potential savings exist for contractors currently paying average rates who can qualify for competitive pricing through strategic shopping. Upstate markets offer relief from NYC rates.
2. New Jersey
- GL Premium (1.35% of revenue): $6,750
- WC Cost ($4.98 × $200K ÷ 100): $9,960
- Total Annual Insurance: $16,710 to $21,710
New Jersey's second-highest WC rate reflects urban density and aggressive legal environment. Despite challenges, significant potential savings reward contractors who maintain strong safety programs and shop aggressively.
3. Florida
- GL Premium (1.05% of revenue): $5,250
- WC Cost ($4.13 × $200K ÷ 100): $8,260
- Total Annual Insurance: $13,510 to $16,510
Florida's elevated WC rate stems from fraud concerns and weather-related risks. Limited potential savings reflects market hardening following recent hurricanes. Contractors must focus on safety and claims management.
4. Hawaii
- GL Premium (0.45% of revenue): $2,250
- WC Cost ($3.97 × $200K ÷ 100): $7,940
- Total Annual Insurance: $10,190 to $12,190
Hawaii presents a paradox—exceptionally low GL rates but high WC costs due to geographic isolation. The limited carrier market reduces competition, though established contractors find favorable terms.
5. South Carolina
- GL Premium (1.2% of revenue): $6,000
- WC Cost ($3.94 × $200K ÷ 100): $7,880
- Total Annual Insurance: $13,880 to $17,880
South Carolina's high WC rate contrasts with exceptional potential savings for GL—indicating market inefficiencies that informed contractors paying average rates can potentially exploit. Charleston and Greenville markets offer better options than rural areas.
General Liability Coverage Components for Electricians
Understanding Limit Structures and Premium Impact
General liability limits significantly influence both premium costs and contract eligibility. Most electrical contractors choose between three standard structures based on their project mix and risk tolerance.
$500K/$1M Limits (Per Occurrence/Aggregate): Entry-level coverage suitable for residential service work. Creates substantial premium reduction compared to standard limits but rarely meets commercial requirements.
$1M/$2M Limits: Industry standard satisfying approximately 90% of contract requirements. Balances protection with affordability for typical electrical operations.
$2M/$4M Limits: Enhanced protection for larger commercial projects. Moderate to significant premium increase provides doubled capacity, often required for institutional work.
Deductible Strategies and Cash Flow Management
Deductible selection represents immediate premium control while managing cash flow exposure.
$0 Deductible: Maximum premium cost but eliminates out-of-pocket exposure. Best for new contractors or those prioritizing predictable expenses.
$2,500 Deductible: Moderate premium reduction while limiting per-claim exposure. Sweet spot for established contractors with basic reserves.
$5,000 Deductible: Significant premium savings justify higher retention for larger contractors. Requires $50,000+ in available capital for claim management.
Specialized Endorsements for Electrical Operations
Professional Liability/E&O Coverage: Covers design errors, code interpretation mistakes, and specification conflicts. Essential for design-build projects. Limits from $250,000 to $1,000,000 add $750 to $3,000 annually.
Faulty Workmanship Protection: Fills the gap where standard GL excludes your work itself. Covers repair/replacement of defective installations. Limits of $50,000 to $500,000 cost $400 to $2,000 annually.
Tools & Equipment Coverage: Protects specialized testing equipment and power tools. Available as GL endorsement ($5,000-$25,000 limits) or separate inland marine policy for larger inventories.
Cyber Liability Components: Increasingly important for smart home and building automation work. Basic $25,000 limits cost $300-$800 annually, covering data breach response and system restoration.
Five Critical GL Coverage Priorities for Electricians
- Adequate Limits - Electrical defects manifest years later, requiring robust long-term protection equal to per-occurrence limits
- Contractual Liability Protection - Ensure blanket additional insured status, waiver of subrogation, and primary/non-contributory wording to satisfy commercial contract requirements
- Faulty Workmanship Coverage (E&O) - Essential protection covering the cost to correct your defective installations, as standard GL excludes your work itself
- Tools & Equipment Protection - Specialized electrical testing equipment and power tools require dedicated coverage for theft, damage, or mysterious disappearance
- Higher Limits or Excess Liability - Commercial projects often require $2M+ limits; consider umbrella or excess policies for cost-effective capacity beyond base GL limits
Cost-Saving Strategies for Electrical Contractors
Strategic Shopping Timeline
Optimize insurance costs through proper market timing. Begin GL renewal shopping 75-90 days before expiration for thorough market coverage. Workers' compensation requires 60-day lead time for classification reviews and competitive quoting.
Avoid last-minute shopping that limits options and prevents proper underwriting. Carriers reward advance planning with broader coverage and better pricing. Mid-term changes rarely produce savings unless circumstances changed significantly.
Workers' Compensation Optimization Tactics
Classification Management: With rates varying from $1.16 to $6.55 per $100 payroll, proper classification is critical. Document operations meticulously to support classification arguments. Even within Code 5190, state-specific rules may allow credits for specific operations.
Interstate Arbitrage: For contractors near state borders, consider establishing operations in lower-rate states. The difference between Oregon ($1.16) and New York ($6.55) justifies operational adjustments. Example: $300,000 payroll saves $16,170 annually.
Payroll Segregation: Separate clerical staff (typically $0.30-$0.50 per $100) from field operations. Exclude overtime premium pay. Document owner wages separately where permitted. Combined strategies can potentially reduce auditable payroll moderately to significantly.
Experience Modification Control: Focus on frequency prevention—three small claims hurt more than one large claim. Implement return-to-work programs to substantially reduce lost time. Moving from 1.20 to 0.80 mod creates major premium savings.
Multi-State Strategy: Larger contractors should consider reciprocal agreements and multi-state policies. Consolidating coverage often reduces costs while simplifying administration.
General Liability Optimization Approaches
Review operations annually for classification opportunities. Electrical contractors performing diverse work may qualify for multiple classifications with varying rates. Document specializations supporting favorable classifications.
Leverage safety certifications for premium credits. NFPA 70E training, OSHA partnerships, and formal apprenticeship programs demonstrate sophistication carriers reward with schedule credits.
Consider alternative risk financing for premiums exceeding $75,000. Group captives, retrospective rating, and large deductible programs provide cost control and potential dividends for superior performers.
Bundle strategically without sacrificing flexibility. Package policies can create modest to moderate cost reductions but maintain separate WC for shopping flexibility. Balance savings against coverage limitations.
Methodology Note
This analysis synthesizes data from multiple sources for actionable benchmarking. General liability premiums reflect quotes from standard market carriers for contractors with median loss histories. Workers' compensation rates represent current filed rates for Code 5190 across all states.
Potential savings calculations represent the difference between average market rates and competitive pricing available to qualified contractors. Not all contractors will achieve these savings - results vary based on individual operations, loss history, financial strength, and local market conditions. Percentages provide directional guidance for benchmarking purposes rather than guaranteed outcomes.
Coverage recommendations reflect typical electrical contractor needs but require customization based on specific operations, contracts, and risk tolerance. Consult qualified insurance professionals specializing in electrical contractors for optimal program design.