Operating an electrical contracting business in New Hampshire involves substantial risks, from on-the-job accidents to lawsuits from dissatisfied clients. To mitigate these perils, carrying proper insurance is imperative.

This comprehensive guide examines key factors influencing insurance costs for New Hampshire electricians, provides illustrative premium ranges for contractors based on revenue and team size, summarizes typical rates for additional critical policies beyond general liability and workers’ compensation, and emphasizes the value of working with a specialist agent to secure optimal coverage at reasonable prices.

With detailed insights into insurance expenditures for electrical contractors in New Hampshire, you can better evaluate policies, strategically request quotes, and obtain the ideal coverage to safeguard your company. Let’s get started.

New Hampshire electricians must have the right electrician insurance coverage to operate legally in the state. This usually includes general liability insurance for electricians to protect against third-party claims and workers’ compensation for electricians to cover employee injuries on the job.

Key Factors Influencing Insurance Costs for Electricians in New Hampshire

Insurance premiums for electricians and electrical contractors in New Hampshire fluctuate based on these critical factors:

Company Revenue

Firms with higher annual revenues generally have greater insurance costs, as more revenue indicates larger project volumes and payroll, amplifying overall risk exposure. For example, a contractor generating $500,000 in revenue annually may spend around $10,000 total in insurance premiums, while a $5 million revenue operation could expend over $100,000.

Number of Employees

More employees means increased potential workers’ compensation claims. Each additional electrician or apprentice raises the chances of expensive injury claims occurring. Even one or two extra workers can add thousands in yearly premiums.

Services Offered

Specialty electrical contractors performing more dangerous disciplines like high-voltage work will likely pay steeper premiums than firms focused on residential service upgrades. Insurers classify risks by the services rendered.

Claims History

Electricians with past liability or workers’ compensation claims can expect to pay higher premiums. Clean records signal lower risks to underwriters. Just one major workers’ comp incident could increase premiums substantially at renewal.

State Regulations

New Hampshire imposes electrical licensing, bonding and insurance prerequisites that influence costs. For example, the state mandates a $25,000 surety bond to gain an electrical contracting license.

Company Location

Insurance rates for electricians can vary across New Hampshire based on regional loss trends. Firms operating in territories with greater natural catastrophe risks or frequent liability claims may have elevated premiums.

Years in Business

Long-standing electrical contractors often enjoy lower insurance rates than new market entrants due to years of demonstrated risk management. New businesses lack prior claims data, raising underwriting uncertainty.

Project Size

Larger commercial and municipal projects involve bigger liability risks that may necessitate additional coverages or limits, impacting costs. Residential contractors face lower exposures than firms undertaking major construction endeavors.

Safety Record

Electricians who thoroughly document safety protocols and training may qualify for discounts from insurers. Consistently utilizing personal protective equipment and following best practices reduces accidents and claims.

Insurance Limits

Higher liability policy limits, sub-limits, and deductibles allow for greater risk transfer, but increase premiums accordingly. Evaluate limits carefully relative to customer contracts and potential loss scenarios.

Building Materials

Contractors specializing in fire resistant building techniques may garner savings on commercial property and general liability, attributed to lower fire claims. Insurers reward risk mitigation tactics.

Security Measures

Robust security systems, partitions and protocols hamper burglary and vandalism, lowering property and inland marine insurance rates. Theft prevention is key.

Vehicle Type

Larger or more specialized vehicles like tall bucket trucks likely have higher commercial auto premiums than standard pickup trucks due to costlier repairs and elevated perils.

By understanding how these elements impact your insurance rates, you can take proactive measures to control expenses and secure favorable premiums. Now let’s examine typical electrician insurance costs.

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

Here are illustrative insurance costs for small, medium and large electrical firms in New Hampshire based on typical contractor risk profiles. Actual premiums vary based on individual attributes like claims history, clientele, and services provided:

Small Electrical Contractor ($150K Revenue, 1 Owner, 1 Employee)

General Liability

Typical: $1,500

Low End: $1,000

High End: $2,100

Workers Compensation

Typical: $1,900

Low End: $1,500

High End: $3,400


Typical: $150

Low End: $50

High End: $250

Medium Electrical Contractor ($500K Revenue, 1 Owner, 3 Employees)

General Liability

Typical: $4,000

Low End: $3,500

High End: $5,200

Workers Compensation

Typical: $5,800

Low End: $4,300

High End: $9,500


Typical: $150

Low End: $50

High End: $250

Large Electrical Contractor ($1M Revenue, 1 Owner, 5 Employees)

General Liability

Typical: $7,800

Low End: $5,600

High End: $10,800

Workers Compensation

Typical: $9,600

Low End: $6,700

High End: $14,900


Typical: $150

Low End: $50

High End: $250

Examining typical premium ranges allows electrical contractors to gauge if their current rates align with industry norms in the state. If markedly above or below these illustrative benchmarks, a policy review may be warranted to pinpoint any gaps or opportunities for savings.

Overview of Additional Insurance Coverages and Typical Premiums

Beyond general liability, workers compensation and bonds, other insurances New Hampshire electrical contractors commonly carry include:

Commercial Auto Insurance

Protects vehicles used for business purposes like works vans and trucks. Typical premiums range from $1,500 to $3,000 per vehicle depending on factors like vehicle type, age, loss records and desired liability limits.

Inland Marine (Tools & Equipment)

Covers tools and equipment on job sites, in vehicles, or in transit. Annual premiums commonly run from $500 to $1,000 for about $10,000 in equipment coverage, scaling upward with higher limits. Deductibles average $500 to $1,000.

Commercial Property Insurance

Safeguards physical business premises and possessions against perils like theft, fire or water damage. Typical electrical contractor premiums range from $750 to $1,500 for modest office space. Costs are higher for larger workshops or warehouses.

Employment Practices Liability

Defends against employment-related lawsuits around discrimination, harassment, wrongful termination and more. Average yearly premiums span $1,500 to $3,000 for small operations. Larger firms may invest $5,000+.

Cyber Liability Insurance

Protects against data breaches, computer hacking and electronic theft involving customer records and firm data. Premiums normally $500 to $2,000 based on revenue. Higher limits are easily added.

Umbrella Liability Insurance

Provides additional liability coverage above general liability and other policies. Common limits of $1 million or $2 million cost around $1,000 to $2,000 in annual premiums for electricians. Higher limits available.

Errors & Omissions Insurance

Covers negligent acts, errors, and omissions arising from professional electrical services. Premiums from $750 to $2,000. Some project owners mandate E&O coverage.

Flood Insurance

In flood zones, insures your premises and possessions against flood damage. Average electrical contractor premium is $450 to $1,000 but highly location dependent. Often required by mortgage lenders.

Builder’s Risk Insurance

For electrical contractors involved in construction projects, protects against property damage during construction. Premiums range around $2 per $1,000 of completed value.

Pollution Liability

Covers bodily injury, property damage and cleanup costs arising from pollution incidents. Recent EPA fines exceed $100,000 in some cases, making this coverage vital.

Commercial Crime Insurance

Safeguards your business against fraud, robbery, and theft of money or securities. Typically $500 to $1,500 based on desired limits and firm cash on hand.

Review the full spectrum of available coverages with your agent to ensure your business is properly protected. Now let’s examine how to secure the optimal electrician policies for your firm.

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

The ideal way to obtain tailored coverage at competitive rates is to work with an independent insurance agent or broker specializing in contractors. This provides access to leading regional and national commercial insurance carriers offering specialized electrician policies.

Key advantages of using a specialist include:

  • No direct affiliation with insurers: This allows them to objectively present quotes from multiple carriers to find you the optimal combination of coverage, experience and cost.

  • Access to top niche markets: Mainstream insurers frequently cannot accommodate the unique risks electrical contractors face. Specialists have connections to secure more specialized policies from niche carriers.

  • Regional expertise: Local and regional brokers understand the risk environment within New Hampshire and can secure appropriate policies reflecting local codes, weather patterns and claims trends.

  • Tailored recommendations: They will assess your specific operations and recommend targeted coverages and limits to properly safeguard your firm based on services rendered, clients served, number of locations and other individual attributes.

  • Ongoing policy management: From adding vehicles to filing small claims to incorporating new coverages as you grow, they handle policy administration and endorsements.

  • Premium financing: Many independent brokers offer payment plans, allowing you to pay over time when cash flow is tight.

Ideal credentials for agents include 5+ years focusing on contractor coverage, involvement with electrical associations, and client references specifically from electricians. Thoroughly vet credentials before partnering for your insurance needs.


Operating an electrical contracting business without proper insurance leaves owners dangerously exposed. Yet securing coverage tailored to your firm’s requirements at a fair price can be challenging without guidance. Use the insights in this New Hampshire electrical contractor’s insurance guide to understand how common policies are priced. Then partner with a specialist agent who will become an invaluable asset helping you structure optimal protection so you can focus on your passion of delivering impeccable electrical work.