Electrical business insurance averages $100 monthly, with costs ranging from $49 to $194 based on your policy choices and state requirements.
Get matched with cheap electrical business insurance below.
Updated: November 19, 2025
Advertising & Editorial Disclosure
Electrical business insurance costs range from $591 to $2,327 annually on average, depending on coverage type, state and sub-industry.
Your electrical insurance premiums depend on your location, claims history, services offered and your employee count.
Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable electrical business insurance costs.
We found average business insurance costs for electrical companies for commonly needed coverage:
| BOP | $166 | $1,989 |
| General Liability | $113 | $1,353 |
| Professional Liability (E&O) | $64 | $768 |
| Workers' Comp | $58 | $690 |
*We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.
Select your industry and state to get a customized quote.
General liability insurance costs for electrical businesses vary by location. Alaska offers the lowest rates at $83 monthly, compared to the $113 national average. New York electricians pay $131 monthly.
| Alabama | $111 | $1,335 |
| Alaska | $83 | $994 |
| Arizona | $107 | $1,282 |
| Arkansas | $108 | $1,300 |
| California | $126 | $1,510 |
| Colorado | $112 | $1,344 |
| Connecticut | $123 | $1,473 |
| Delaware | $122 | $1,462 |
| Florida | $122 | $1,467 |
| Georgia | $115 | $1,377 |
| Hawaii | $122 | $1,469 |
| Idaho | $107 | $1,285 |
| Illinois | $124 | $1,488 |
| Indiana | $110 | $1,322 |
| Iowa | $108 | $1,291 |
| Kansas | $110 | $1,317 |
| Kentucky | $105 | $1,256 |
| Louisiana | $129 | $1,543 |
| Maine | $98 | $1,175 |
| Maryland | $108 | $1,294 |
| Massachusetts | $119 | $1,422 |
| Michigan | $107 | $1,284 |
| Minnesota | $106 | $1,272 |
| Mississippi | $113 | $1,362 |
| Missouri | $112 | $1,346 |
| Montana | $112 | $1,350 |
| Nebraska | $107 | $1,283 |
| Nevada | $128 | $1,534 |
| New Hampshire | $112 | $1,348 |
| New Jersey | $128 | $1,536 |
| New Mexico | $114 | $1,363 |
| New York | $131 | $1,573 |
| North Carolina | $98 | $1,175 |
| North Dakota | $98 | $1,179 |
| Ohio | $105 | $1,258 |
| Oklahoma | $108 | $1,299 |
| Oregon | $105 | $1,259 |
| Pennsylvania | $130 | $1,562 |
| Rhode Island | $124 | $1,489 |
| South Carolina | $116 | $1,396 |
| South Dakota | $106 | $1,268 |
| Tennessee | $110 | $1,322 |
| Texas | $114 | $1,368 |
| Utah | $107 | $1,288 |
| Vermont | $108 | $1,302 |
| Virginia | $103 | $1,235 |
| Washington | $128 | $1,541 |
| West Virginia | $119 | $1,422 |
| Wisconsin | $111 | $1,331 |
| Wyoming | $104 | $1,254 |
*These general liability rates reflect electrical businesses with two employees. Your rates depend on your services, claims history and number of employees.
Workers' compensation insurance costs vary by state. North Carolina electricians pay $49 monthly, while New York electricians pay $67. State regulations and your claims history determine these costs.
| Alabama | $56 |
| Alaska | $53 |
| Arizona | $54 |
| Arkansas | $55 |
| California | $64 |
| Colorado | $56 |
| Connecticut | $62 |
| Delaware | $62 |
| Florida | $62 |
| Georgia | $58 |
| Hawaii | $60 |
| Idaho | $55 |
| Illinois | $63 |
| Indiana | $56 |
| Iowa | $55 |
| Kansas | $55 |
| Kentucky | $54 |
| Louisiana | $66 |
| Maine | $50 |
| Maryland | $55 |
| Massachusetts | $60 |
| Michigan | $55 |
| Minnesota | $54 |
| Mississippi | $58 |
| Missouri | $57 |
| Montana | $57 |
| Nebraska | $54 |
| Nevada | $65 |
| New Hampshire | $57 |
| New Jersey | $65 |
| New Mexico | $58 |
| New York | $67 |
| North Carolina | $49 |
| Oklahoma | $54 |
| Oregon | $53 |
| Pennsylvania | $66 |
| Rhode Island | $63 |
| South Carolina | $59 |
| South Dakota | $54 |
| Tennessee | $56 |
| Texas | $58 |
| Utah | $55 |
| Vermont | $55 |
| Virginia | $52 |
| West Virginia | $60 |
| Wisconsin | $57 |
*These workers' comp rates reflect electrical businesses with two employees. Requirements and costs vary by state regulations.
Professional liability insurance averages $64 monthly nationwide. North Dakota electricians pay $56 monthly, while Louisiana electricians pay $80.
| Alabama | $63 |
| Alaska | $63 |
| Arizona | $61 |
| Arkansas | $60 |
| California | $71 |
| Colorado | $63 |
| Connecticut | $69 |
| Delaware | $69 |
| Florida | $70 |
| Georgia | $65 |
| Hawaii | $65 |
| Idaho | $61 |
| Illinois | $71 |
| Indiana | $62 |
| Iowa | $60 |
| Kansas | $61 |
| Kentucky | $60 |
| Louisiana | $80 |
| Maine | $56 |
| Maryland | $60 |
| Massachusetts | $68 |
| Michigan | $61 |
| Minnesota | $59 |
| Mississippi | $64 |
| Missouri | $64 |
| Montana | $63 |
| Nebraska | $61 |
| Nevada | $73 |
| New Hampshire | $63 |
| New Jersey | $72 |
| New Mexico | $65 |
| New York | $74 |
| North Carolina | $56 |
| North Dakota | $56 |
| Ohio | $60 |
| Oklahoma | $62 |
| Oregon | $58 |
| Pennsylvania | $74 |
| Rhode Island | $71 |
| South Carolina | $66 |
| South Dakota | $60 |
| Tennessee | $62 |
| Texas | $64 |
| Utah | $60 |
| Vermont | $61 |
| Virginia | $58 |
| Washington | $73 |
| West Virginia | $68 |
| Wisconsin | $64 |
| Wyoming | $59 |
*We based these professional liability rates on electrical businesses with two employees across different states. Your actual rates will depend on your services offered and location.
Where you run your electrical business affects what you pay. Business owner's policy (BOP) premiums swing from $117 in Alaska to $194 in New York for identical coverage. BOP insurance cost depends on your location.
| Alabama | $163 |
| Alaska | $117 |
| Arizona | $158 |
| Arkansas | $162 |
| California | $184 |
| Colorado | $169 |
| Connecticut | $181 |
| Delaware | $184 |
| Florida | $184 |
| Georgia | $169 |
| Hawaii | $177 |
| Idaho | $155 |
| Illinois | $184 |
| Indiana | $159 |
| Iowa | $157 |
| Kansas | $160 |
| Kentucky | $156 |
| Louisiana | $189 |
| Maine | $145 |
| Maryland | $157 |
| Massachusetts | $172 |
| Michigan | $160 |
| Minnesota | $153 |
| Mississippi | $164 |
| Missouri | $163 |
| Montana | $164 |
| Nebraska | $153 |
| Nevada | $179 |
| New Hampshire | $164 |
| New Jersey | $189 |
| New Mexico | $170 |
| New York | $194 |
| North Carolina | $143 |
| North Dakota | $148 |
| Ohio | $154 |
| Oklahoma | $158 |
| Oregon | $150 |
| Pennsylvania | $191 |
| Rhode Island | $186 |
| South Carolina | $171 |
| South Dakota | $158 |
| Tennessee | $162 |
| Texas | $166 |
| Utah | $157 |
| Vermont | $158 |
| Virginia | $150 |
| Washington | $185 |
| West Virginia | $180 |
| Wisconsin | $166 |
| Wyoming | $157 |
*These BOP rates assume an electrical business with two employees. Your rates will differ based on how many people you employ, where you work and what coverage you buy.
Electrical business insurance runs $55 to $196 monthly, depending on the insurer. Companies price differently based on their target markets and risk assessment models. These rates fluctuate as insurers adjust their underwriting criteria and expand coverage options.
| Chubb | $114 | $1,370 |
| Coverdash | $109 | $1,308 |
| Hiscox | $196 | $2,358 |
| NEXT Insurance | $92 | $1,108 |
| Nationwide | $92 | $1,109 |
| Progressive Commercial | $108 | $1,298 |
| Simply Business | $55 | $656 |
| The Hartford | $84 | $1,011 |
| Thimble | $63 | $757 |
| biBERK | $96 | $1,150 |
Several factors determine your electrical business insurance cost when insurers calculate your policy rates.
Local regulations and claim frequencies drive location-based rate differences. Tornado-prone areas and high-crime neighborhoods increase your risk profile. State requirements create premium variations: Alaska electricians pay $83 monthly for general liability, while New York electricians pay $131.
Fire claims from faulty wiring, electrocution incidents and installation errors stay on your record for years. Your track record for completed work and job site safety heavily influences rates. Clean OSHA records and zero completed operations claims earn you preferential pricing.
Solo electricians maintain lean insurance costs. Add journeymen, apprentices and helpers, and premiums scale with payroll. Electricians face electrocution risks, ladder falls and burn injuries, placing them in high-risk workers' comp classifications that determine your final costs.
Emergency 24/7 service increases liability from rushed work under pressure. Solar panel installation, EV charging station setup and smart home automation introduce technology integration risks. Generator installation, pool electrical systems and outdoor lighting projects each carry distinct exposure. Specializations beyond standard electrical work reshape your risk profile and premiums.
Annual revenue reflects project volume and insurance needs. Small contractors earning $150,000 through residential service calls need basic coverage, while established firms generating $2 million on commercial projects require comprehensive protection.
Higher revenue indicates more job sites, expanded geographic reach and multiplied opportunities for installation errors or accidents.
Protection amounts you establish create substantial cost differentials. Most electrical contractors carry $1 million to $2 million in general liability, though commercial clients often mandate higher limits.
Basic operations with hand tools and wire testers need modest coverage, while contractors with specialized diagnostic equipment, trenchers, or bucket trucks require substantial protection. Service vehicle quantity, age and value all factor into commercial auto premium calculations.
Financial health affects a carrier's willingness to offer competitive rates. Electrical contractors with excellent credit receive 13% to 38% discounts versus those with credit difficulties. Strong credit reduces insurer concerns about financially desperate contractors cutting corners on materials or rushing dangerous work.
Reducing your electrical business insurance cost requires strategic shopping and using our guide to smart business practices. Here's how you can find the best cheap business insurance for your electrical business and build a better risk profile over time.
Electrical contractors need general liability for property damage and injuries, professional liability to cover installation errors and code violations and completed operations coverage for problems that surface after projects finish.
Add commercial auto for service vehicles and tools, inland marine for expensive equipment and workers' compensation since electricians face electrocution and fall risks.
Insurers see electrical work as risky, so they charge different amounts based on whether you handle residential service calls, commercial installations or high-voltage industrial projects.
Contractor-focused insurers understand electrical licensing requirements and often offer better rates than general insurers. Get quotes from at least three companies. Verify each insurer covers work-related pollution liability, as electrical work may involve hazardous materials like old transformers.
A business owner's policy bundles general liability, property and equipment coverage, saving you 20% to 28% compared to buying separate policies.
Bundling also makes paperwork easier when general contractors ask for proof you carry multiple coverage types on each job.
Raising deductibles to $2,500 or $5,000 on property and equipment coverage cuts premiums by 25% to 35%. This works well for established contractors with cash reserves. Keep general liability deductibles low because electrical fires or shock injuries can trigger six-figure claims.
Monthly payments tack on 6% to 12% in installment fees. On a $10,000 annual premium, that's over $1,000 wasted. Pay upfront to dodge these fees and earn a 5% to 10% discount.
Update your policy when you hire electricians, add services like solar panel installation or EV charging stations, or take on bigger commercial or industrial projects.
Raise your tools and equipment limits as you buy specialized diagnostic equipment, trenchers or aerial lifts. Safety programs and certifications like OSHA 30 can slash your premiums.
Electrical business insurance generally costs between $49 and $194 per month, though your exact premium will depend on factors such as location, business size, and claims history. You can often lower your rates by comparing quotes from multiple insurers, bundling your policies, selecting higher deductibles, and paying annually rather than monthly.
Electrical business owners commonly ask about insurance costs. We answered the most frequent questions below:
Workers' compensation costs $58 monthly and covers only employee injuries. Most electrical businesses also need general liability coverage ($113 monthly) to cover costs from customer injuries and property damage.
You'll pay more in these states. General liability in California runs $126 monthly (versus $113 national average), and BOP costs $184 (versus $166 average). New York's rates are similar: $131 for general liability and $194 for BOP.
Bundling electrical business insurance policies delivers greater savings compared to purchasing individual coverage. Insurance companies provide discounts when you package general liability, commercial property and commercial auto insurance together with a single provider.
Multiple factors increase premiums: working with high-voltage systems, past claims history, expensive specialized equipment, higher worker counts, operating in risky areas and poor credit ratings.
Higher deductibles drop your monthly premiums, but you'll pay more out of pocket when you file claims. Pick based on how much cash you have saved and how often you expect to file claims.
Workers' comp for electrical businesses costs $49 monthly in North Carolina and $67 monthly in New York. Other states fall between these amounts.
Yes. BOP costs $166 monthly and bundles general liability, commercial property and business interruption coverage. You'll pay less than buying each policy separately and deal with simpler paperwork.
Shop every year when your policy renews. Get quotes from several insurers to find lower rates, especially if you've hired employees or expanded your services.
Electrical contractors face high injury risks, expensive equipment and liability exposure that varies by location. We gathered quotes across multiple states to show you exactly what small electrical businesses pay for essential coverage.
Every quote reflects the same business profile for accurate comparisons:
Why This Profile Matters
This setup represents a typical small electrical contractor: large enough to need comprehensive protection but small enough where every premium dollar counts. Most electrical businesses start with two employees and this revenue range, making these quotes directly applicable to your situation.
We selected insurers offering nationwide coverage and online quotes, focusing on companies experienced with electrical contractors' specific risks: job site injuries, property damage claims and professional liability exposure.
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
