Operating an electrical contracting business in Montana involves navigating unique risks and regulations. To run a successful electrical company in the state, having proper insurance is essential. This protects your business, employees, assets, and operations.

This guide examines key factors influencing insurance costs for electricians in Montana. It also provides an overview of typical premium ranges for small, medium, and large electrical firms in the state. We’ll examine general liability, workers’ compensation, bonds, and other common policies electricians need.

Understanding these costs assists Montana electrical contractors in budgeting for and securing tailored, affordable insurance coverage. With the right protection, electricians can avoid friction from unforeseen risks and focus on satisfying customers.

Montana electricians must have the appropriate insurance for electricians to operate legally in the state. This typically includes liability insurance for electricians to safeguard against third-party claims and workers’ comp for electricians to cover employee injuries sustained while working.

Key Factors Influencing Insurance Costs for Electricians in Montana

Insurance rates for electricians in Montana depend on several important factors:

Experience Modifier: This number represents your safety record, starting at 1.0 then fluctuating up or down based on claims history. More incidents drive premiums upward. Maintaining rigorous safety protocols helps minimize modifiers and keep rates low.

Payroll Amount: A portion of premiums are directly tied to payroll size. Larger payrolls increase overall costs. Keeping tight control over payroll aligned with genuine exposure helps optimize insurance expenses.

Number of Employees: More employees means greater risks and chances of claims occurring. This expands costs. Consider automation and technology to control labor costs where possible.

Revenue: Higher revenues require more on-site work. Greater exposure from expanded operations leads to higher premiums. Passing along a portion of insurance costs to clients through your rates helps offset elevated premiums.

Location: Insurance rates can vary significantly across Montana’s cities and rural areas. Costs tend to be lower in less populated regions with fewer losses. Being based outside major cities like Billings, Missoula, and Great Falls may provide savings.

Services Performed: Specialized electrical work brings unique risks affecting premiums differently. All operations must be evaluated. Avoiding particularly hazardous activities can reduce costs.

Claims History: Frequent past claims push premiums higher. A clean record keeps rates affordable. Following incident response best practices helps in achieving claim settlements that minimize long-term effects on premiums.

Policy Limits: Bigger projects may necessitate expanded liability coverage, increasing expenditures. Carefully matching policy limits to contractual requirements prevents over-insuring, which drives up costs.

Industry: Being in a relatively low-risk sector compared to areas like construction keeps electrician premiums reasonable. Still, it’s vital to have insurance reflecting industry-specific hazards.

Now let’s examine typical premium ranges for electrical firms of different sizes in Montana.

Overview of Cost Illustration for Small, Medium, and Large Electrical Businesses in Montana

Here we provide typical premium ranges for key insurance policies that small, medium, and large electrical contractors in Montana need.

These numbers illustrate costs for businesses working predominantly with homeowners on residential projects with over 10 years experience and no recent claims. All contractors should use this as a reference point for their specific requirements.

The low end of each range represents ideal pricing achievable through an experienced broker with access to top regional and national carriers. The high end represents pricing from standard carriers. Actual premiums depend on unique risk characteristics.

Small Electrical Contractor ($150K Revenues, 1 Owner, 1 Employee) Insurance Costs

General Liability

Typical Premium: $1,800

Low End: $900

High End: $2,500

General liability protects your business if a third party alleges bodily injury or property damage from your electrical work. For a small Montana electrical contractor, premiums usually range from $900 to $2,500, with $1,800 being typical. Boosting your policy limit above $1 million marginally impacts premiums but substantially elevates your defense capabilities.

Workers Compensation

Typical Premium: $1,900

Low End: $1,500

High End: $3,300

This policy covers injuries employees sustain on the job. Premiums vary based on risk classification codes and claims history. For one employee, small Montana electrical contractors generally pay $1,500 to $3,300 annually. Enforcing stringent safety protocols and providing ample training helps minimize incidents and keep rates low.


Typical Premium: $150

Low End: $50

High End: $250

While not insurance, bonds are often required for licensing. They guarantee your work will be completed according to contractual terms. Premiums usually range from 1% to 5% of the bond amount. For small electrical contractors in Montana, this results in annual bond premiums of $50 to $250.

Medium Electrical Contractor ($500K Revenues, 1 Owner, 3 Employees) Insurance Costs

General Liability

Typical Premium: $5,100

Low End: $2,100

High End: $7,100

At $500k in revenue with 3 employees, general liability premiums often run between $2,100 to $7,100 for Montana electrical contractors, with about $5,100 being typical. Carefully matching your policy limits to project requirements prevents over-insuring and unnecessary costs.

Workers Compensation

Typical Premium: $5,600

Low End: $4,200

High End: $9,200

With a slightly larger payroll of 3 employees, yearly workers compensation premiums normally fall in the range of $4,200 to $9,200. Enforcing safety protocols and evaluating tasks to minimize risk exposure assists in optimizing costs.


Typical Premium: $150

Low End: $50

High End: $250

Bonding requirements and premiums align with licensing needs, resulting in similar costs to smaller contractors of approximately $50 to $250 per year.

Large Electrical Contractor ($1M Revenues, 1 Owner, 5 Employees) Insurance Costs

General Liability

Typical Premium: $9,800

Low End: $4,800

High End: $13,200

For larger electrical contractors with $1M in revenue, general liability premiums often run from $4,800 to $13,200 annually, with about $9,800 being typical. Verifying you have suitable limits as your projects expand keeps your business protected.

Workers Compensation

Typical Premium: $9,300

Low End: $6,500

High End: $14,400

With a team of 5 and greater payroll exposure, workers compensation premiums usually fall between $6,500 and $14,400 each year. Containing costs through safety initiatives and proper classification of risk exposures is key.


Typical Premium: $150

Low End: $50

High End: $250

Licensing needs and resulting bond premiums remain consistent. But some large projects may require performance bonds, increasing costs.

Overview of Additional Insurance Coverages and Typical Premiums

Beyond general liability, workers compensation, and bonds, here are other common policies electricians in Montana need and their typical yearly premiums:

Commercial Auto Insurance

Typical Premium: $1,800 – $3,500 per vehicle

This covers your fleet if an accident happens. For electrician vans and trucks, annual premiums normally run $1,800 to $3,500 per vehicle. Installing telematics helps track driver behaviors and prevent violations resulting in premium hikes.

Inland Marine (Tools & Equipment)

Typical Premium: $250 – $750

This protects costly tools and equipment on job sites and in transit. For small to mid-size Montana electrical contractors, annual premiums are commonly $250 to $750. Matching your limits to current replacement costs prevents under-insuring.

Commercial Property Insurance

Typical Premium: $500 – $2,000

This policy insures offices, warehouses, and other business premises against damage. Typical yearly premiums for Montana electrical contractors range from $500 to $2,000 based on location, building construction, and value.

Employment Practices Liability

Typical Premium: $800 – $3,000+

This furnishes protection against employment lawsuits alleging discrimination, wrongful termination, harassment and more. Common premiums run from $800 to $3,000+ depending on team size, revenue, and risk factors.

Cyber Insurance

Typical Premium: $400 – $1,500+

This covers data breaches and electronic theft. For small businesses, yearly premiums normally span from $400 to $1,500+. Following cyber security best practices can help minimize risks.

Umbrella Insurance

Typical Premium: $600 – $1,200+

Umbrella insurance provides additional liability coverage beyond other policies’ limits. In Montana, annual premiums for $1M in extra protection commonly range from $600 to $1,200+. Higher coverage amounts or revenue may increase costs.

Premiums for these additional policies depend on revenue, team size, location, claims history, and other individual business factors. An experienced broker can help electricians in Montana determine suitable coverage limits and secure competitive pricing.

Getting Multiple Quotes And Securing the Right Insurance for Your Electrical Business

Partnering with an independent insurance broker who specializes in the electrical trade ensures access to top regional and national carriers. This furnishes quotes from multiple insurers, enabling selection of a tailored policy at the best available price.

Here are some key considerations when choosing an insurance broker:

  • Industry expertise – Seek a broker thoroughly familiar with the insurance needs of electrical contractors. This expertise helps them identify potential coverage gaps.

  • Carrier access – The broker should have appointments with both regional and national insurance companies suitable for electricians. This enables customized quotes.

  • Client references – Reputable brokers will furnish client references validating their capabilities and customer service.

  • Policy analysis – Brokers should review your current insurance contracts to uncover optimization opportunities and ensure adequate limits.

  • Service capabilities – Select a broker providing comprehensive support including risk management guidance, certificate issuance, and claims assistance.

An experienced broker understands the unique risks electricians face. They can identify coverage gaps and structure an insurance portfolio providing end-to-end protection. Check client references and confirm the broker has relationships with highly rated insurers.


Running an electrical business in Montana involves navigating a distinctive regulatory and risk environment. Obtaining properly structured insurance is essential for managing expenses and avoiding friction from unanticipated liabilities.

Use this guide as a starting point when budgeting for insurance and working with a broker to secure customized protection. With the right coverage, electricians can power their business forward confidently.