Simply Business earned our top spot for the best small business insurer for electrical companies because of its affordability and coverage. However, we recommend comparing quotes from our other top picks, including The Hartford, NEXT and Nationwide.
Best Electrical Business Insurance
Updated: July 14, 2025
Advertising & Editorial Disclosure
Key Takeaways
Simply Business, The Hartford and NEXT are tied as the best business insurance companies for electrical firms because they offer the greatest balance of affordability and coverage.
The cheapest overall commercial insurance provider for electrical businesses is Simply Business, with low monthly rates for various coverage types.
To shop for business insurance for your electrical business, assess the risks in your industry, consult agents and other similar organizations and compare multiple options.
Best Business Insurance for Electrical Companies
| Simply Business | 94 | 98 | 83 |
| The Hartford | 94 | 95 | 91 |
| NEXT Insurance | 94 | 92 | 94 |
| Nationwide | 92 | 92 | 91 |
| biBERK | 91 | 93 | 91 |
| Thimble | 91 | 98 | 81 |
| Coverdash | 90 | 92 | 83 |
| Chubb | 89 | 89 | 87 |
| Progressive Commercial | 89 | 92 | 81 |
| Hiscox | 83 | 80 | 87 |
*All scores were based on a electrical business with two employees across professional liability, general liability, workers' comp and BOP policies.
Simply Business
pros
Cheapest general liability and BOP
Access to multiple carrier options
Great for small or solo electricians
cons
Limited claims support visibility
COMPANY HIGHLIGHTS
Simply Business takes the top spot for electricians due to the lowest general liability and BOP rates across all carriers we reviewed. Its marketplace model lets small electrical contractors compare policies from several insurers in one place. This helps newer or part-time electricians who want flexible, affordable coverage. Simply Business is ideal for low-risk, non-commercial jobs, but users seeking more direct claims handling might prefer traditional carriers.
The Hartford
pros
Cheapest professional liability coverage
Strong BOP and GL pricing
High financial strength rating
cons
Fewer tech features than newer carriers
COMPANY HIGHLIGHTS
The Hartford offers the lowest professional liability coverage pricing among all providers in our study. It also ranks well for general liability and BOP affordability, making it a dependable pick for licensed electricians working on high-risk jobs or commercial sites.
The Hartford is backed by an A+ from AM Best, showing strong claims reliability. While it's not as tech-forward as startup insurers, its service quality and stability work well for most contractors.
NEXT
pros
Fast digital application process
High customer satisfaction
Strong professional liability pricing
cons
May lack complex project coverage
COMPANY HIGHLIGHTS
NEXT works well for electricians who want a quick and easy digital experience from quote to coverage. With a 4.7‑out‑of‑5 rating and strong affordability across several coverage types, it’s a favorite among tech-savvy contractors. NEXT ranks second for professional liability pricing and remains competitive across GL and workers' comp. Its platform is built for ease, but it may not support more complex or large-scale commercial projects.
Cheapest Business Insurance for Electrical Firms
Based on our study of business insurance pricing, Simply Business offers the cheapest overall commercial insurance for electrical companies across most policy types. However, this applies only to electrical companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Electrical Companies
With an average monthly rate of $49, Simply Business offers the lowest-cost general liability insurance for electrical companies. Even so, consider getting quotes from the next-most-affordable insurers: Thimble and The Hartford.
| Simply Business | $49 | $588 |
| Thimble | $50 | $597 |
| The Hartford | $92 | $1,103 |
| Nationwide | $102 | $1,223 |
| Progressive Commercial | $111 | $1,326 |
| biBERK | $112 | $1,341 |
| Coverdash | $114 | $1,364 |
| NEXT Insurance | $114 | $1,362 |
| Chubb | $136 | $1,633 |
| Hiscox | $265 | $3,183 |
Cheapest Workers' Comp Insurance for Electrical Companies
Thimble offers the cheapest workers' comp insurance for electrical companies, with rates starting at $25 monthly or $295 annually. Still, it’s worth checking quotes from other low-cost insurers like Progressive Commercial, Simply Business, Hiscox and Coverdash.
| Thimble | $25 | $295 |
| Progressive Commercial | $26 | $318 |
| Hiscox | $27 | $329 |
| Simply Business | $27 | $328 |
| Coverdash | $28 | $337 |
| The Hartford | $28 | $334 |
| biBERK | $29 | $347 |
| NEXT Insurance | $29 | $343 |
| Nationwide | $31 | $370 |
| Chubb | $33 | $397 |
Cheapest Professional Liability Insurance for Electrical Companies
The Hartford offers the most affordable professional liability insurance options for electrical companies, with low average monthly rates of $103. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Thimble.
| The Hartford | $103 | $1,232 |
| NEXT Insurance | $107 | $1,282 |
| Progressive Commercial | $110 | $1,314 |
| Hiscox | $114 | $1,364 |
| Simply Business | $114 | $1,365 |
| Thimble | $114 | $1,372 |
| Coverdash | $116 | $1,395 |
| biBERK | $118 | $1,421 |
| Nationwide | $123 | $1,475 |
| Chubb | $134 | $1,604 |
Cheapest BOP Insurance for Electrical Companies
For those seeking combined general liability and property insurance in a business owner’s policy (BOP), Simply Business offers the lowest average annual rate at $879. That’s a savings of roughly $52 annually compared to Thimble, the second most affordable option.
| Simply Business | $73 | $879 |
| Thimble | $78 | $931 |
| The Hartford | $117 | $1,400 |
| biBERK | $145 | $1,739 |
| Nationwide | $153 | $1,835 |
| Coverdash | $165 | $1,979 |
| NEXT Insurance | $165 | $1,976 |
| Progressive Commercial | $165 | $1,982 |
| Chubb | $203 | $2,436 |
| Hiscox | $399 | $4,789 |
What Type of Coverage Do You Need for a Electrical Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses with vehicles must have commercial auto coverage. Many clients or contracts also require businesses to carry general liability insurance before starting work. You might also need a surety bond in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED ELECTRICAL BUSINESS COVERAGE
Electrical companies should carry general liability insurance because it covers common risks like bodily injury, property damage and legal defense costs. Professional liability insurance also helps businesses that work under client contracts or provide specialized services. It's particularly helpful for electrical businesses with commercial contracts or high-risk jobs, like technical, legal or customized services.
How to Get the Best Cheap Business Insurance for Your Electrical Company
Here's a step-by-step method for finding the best and cheapest business insurance for your electrical company.
- 1
Decide on coverage needs before buying
Think about what could go wrong in your electrical business, get advice from similar businesses, talk to agents and research the types of business insurance. This will give you a balanced perspective on your coverage needs and prevent you from being convinced to get excessive coverage.
- 2
Research costs
Research average costs for your business profile and find which providers offer the cheapest rates overall. This helps you see how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
Research what customers say on online rating sites and forums for a better look at company services. Also, research coverage options to make sure you're covered for what you need now and as your business grows.
- 4
Compare multiple quotes through different means
The best way to find a good deal is to compare multiple quotes for the same coverage. Pricing differs by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal.
How to Decrease Your Electrical Business's Liability Risk
Reducing liability risks helps keep insurance costs down. We've organized risk mitigation strategies by electrical business type to help you find the most relevant ways to protect your business.
Electrical Business Risk Type | Included Types of Electrical Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | High-voltage/utility contractors, industrial electricians, emergency services | Require OSHA, NFPA 70E, and lockout/tagout training. Provide arc flash PPE, voltage-rated gloves, and insulated tools. Enforce jobsite hazard briefings and use job-specific risk assessments. Use buddy systems and require pre-task equipment checks. |
Moderately High | New construction electricians, commercial service electricians | Conduct permit/code compliance reviews. Enforce ladder, lift, and confined space safety procedures. Require daily safety walk-throughs. Use GFCI testing protocols and multi-point inspections before signoff. |
Moderate | Residential electricians, smart home/low-voltage installers | Train on NEC code compliance and device compatibility. Require signed contracts outlining scope of work. Use customer walk-throughs before and after service. Document all wiring paths and breaker locations. |
Moderately Low | Electrical inspectors, electrical consultants | Use certified inspection checklists and detailed documentation. Provide findings in writing with signed acknowledgment. Carry professional liability coverage for advisory risk. Avoid informal advice without reports. |
Lowest | Handyman-level electrical work, small repairs | Restrict work to non-permit projects. Clearly communicate work limitations. Use client approval forms. Keep photographic records and standard operating procedures for each task. |
Best Insurance for Electrical Business: Bottom Line
Simply Business is the best insurer for electrical business insurance, while it also offers the cheapest option overall. We also recommend getting quotes from The Hartford, NEXT and Nationwide. For the best deal, talk to agents, research providers and pricing, and compare multiple quotes side by side.
Electrical Business Insurance: FAQ
Below, we answer common questions about business insurance for electrical companies.
Who offers the best electrical business insurance overall?
Simply Business, The Hartford and NEXT are tied as our top choices for electrical business insurance, with excellent service and MoneyGeek scores of 94 out of 100.
Who has the cheapest business insurance for electrical companies?
Here are the cheapest business insurance companies for electricians by coverage type:
- Cheapest general liability insurance: Simply Business at $49 per month
- Cheapest workers' comp insurance: Thimble at $25 per month
- Cheapest professional liability insurance: The Hartford at $103 per month
- Cheapest BOP insurance: Simply Business at $73 per month
What business insurance is required for electrical organizations?
You need workers' compensation insurance if you have employees and commercial auto insurance if you own business vehicles, with requirements varying by state. Most clients and property leases require general liability insurance and surety bonds.
How much does electrical business insurance cost?
Business insurance costs for electrical companies depend on the type of coverage and size of the operation. Below are the average monthly costs for essential policies:
- General liability: $115 per month
- Workers comp: $28 per month
- Professional liability: $115 per month
- BOP insurance: $166 per month
How We Chose the Best Electrical Business Insurance
We selected the best business insurer for electrical companies 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 it 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 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 a company is 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
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 16, 2025.
- NEXT. "Customer Reviews." Accessed June 16, 2025.