Best Electrical Business Insurance

The Hartford and Simply Business tie for first place in our rankings for the best electrical business insurance, each earning a MoneyGeek score of 4.70 out of 5. Both offer competitive rates, quality customer service and comprehensive coverage options. NEXT and Nationwide round out our top picks for electrician business insurance.

Note: We based all scores on a electrical business with two employees across professional liability, general liability, workers' comp and BOP policies.

Simply Business offers the most affordable electrical business insurance at $55 monthly ($656 annually), with the lowest rates for general liability, professional liability and business owner's policies. For workers' compensation, NEXT Insurance and The Hartford offer better value at $54 and $55 monthly.

Simply Business offers the cheapest general liability insurance for electrical contractors at $49 monthly ($582 annually). Licensed electricians save $64 monthly compared to the $113 industry average, a 57% reduction in premium costs. This affordable coverage protects your electrical business from third-party injury claims and property damage while keeping your budget intact.

NEXT delivers the cheapest workers' comp insurance for electricians at $54 monthly ($647 annually), saving electrical contractors $4 monthly compared to the $58 industry average. Licensed electricians with employees can also compare rates from The Hartford, Thimble and Progressive Commercial.

Electrical contractors get the cheapest professional liability insurance from Simply Business at $42 monthly ($504 annually). It provides licensed electricians financial protection from claims about faulty installations or missed deadlines, and saves you $22 monthly compared to the $64 industry average. NEXT offers competitive rates at $43 monthly for electrical businesses needing errors and omissions protection.

Bundling general liability and property coverage saves electrical contractors serious money. Simply Business leads with the most affordable BOP insurance at $73 monthly ($870 annually, $93 less per month than the $166 industry average.

In general, electrical business insurance costs are the following for the four most popular coverage types:

• General Liability: $113 on average per month, ranging from $83 to $131, depending on the state
• Workers' Comp: $58 on average per month, ranging from $49 to $67, depending on the state
• Professional Liability (E&O): $64 on average per month, ranging from $56 to $80, depending on the state
• BOP Insurance: $166 on average per month, ranging from $117 to $194, depending on the state

Most states require workers' compensation insurance for electrical business's insurance needs when you have employees, and many require general liability coverage for licensing. Beyond these mandated policies, professional liability, commercial auto and inland marine insurance protect you from the specific risks electrical contractors experience on every job.

• Workers' Compensation Insurance: When your electricians get shocked by live wires, fall from ladders or suffer burns on the job, workers' comp covers medical bills and lost wages. Nearly every state requires this once you hire employees, with typical limits of $100,000 per accident.
• General Liability Insurance: Protects your electrical business when your work causes a client's house fire or someone trips over your equipment. Many states require $300,000 to $500,000 in coverage to obtain your contractor license.
• Commercial Auto Insurance: Your personal auto policy won't cover accidents while hauling tools and materials to job sites. Commercial auto protects you when your service van causes an accident or gets stolen with your equipment inside.
• Professional Liability Insurance: When installation mistakes, design errors or code violations cause client financial losses, errors and omissions coverage protects licensed electricians. This policy covers legal defense and settlements. Most electrical contractors carry $1 million in coverage.
• Inland Marine Insurance: Protects your voltage testers, wire strippers and power tools from theft or damage while traveling between job sites. Standard property insurance only covers tools at fixed locations. You need inland marine for equipment constantly on the move.
• Commercial Property Insurance: Covers your office, warehouse and stored materials from fire, theft and weather damage. Electrical businesses with physical locations need coverage matching the replacement cost of buildings, office equipment and wire inventory you store on site.
• Commercial Umbrella Insurance: Provides extra liability protection when claims exceed your other policy limits. Electrical contractors handling large commercial projects or high-voltage work should carry an additional $1 million to $2 million umbrella policy for major incidents.

Getting business insurance includes gathering quotes from multiple providers and comparing coverage options that match your specific needs as a licensed electrician.

Electrical contractors need workers' compensation, general liability, commercial auto and inland marine coverage to protect against the risks you experience daily. The Hartford and Simply Business lead our rankings with 4.70 MoneyGeek scores, delivering comprehensive protection and competitive rates for licensed electricians. Simply Business offers the lowest prices at $55 monthly, with professional liability coverage starting at $42 monthly for electrical businesses.

We answer frequently asked questions about electrical business insurance:

We selected the best business insurer for electricians based on the following criteria:

• Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better the company performs.
• Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
• Coverage (15% of score): We scored business insurance providers for this category based on the flexibility, payment and actual coverage options.
• Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely companies are to pay out claims compared to the competition.

All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:

• Three-person business with two employees
• Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
• $150,000 in payroll
• $300,000 annual revenue