Electrical business insurance costs vary significantly across coverage types, helping you plan your budget effectively. MoneyGeek's analysis shows monthly premiums range from $58 for workers' compensation to $166 for a business owner's policy (BOP).
How Much Does Electrical Business Insurance Cost?
Electrical business insurance can cost as little as $58 per month, though your specific business details and coverage needs will determine your actual rate.
Discover cheap electrical business insurance below.
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Updated: August 19, 2025
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Key Takeaways
Electrical business insurance costs range from $58 to $166 monthly, depending on your coverage type.
Your electrical insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable electrical business insurance costs.
Average Electrical Business Insurance Cost Overall
| BOP | $166 |
| General Liability | $113 |
| Professional Liability (E&O) | $64 |
| Workers' Comp | $58 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Electrical Business Insurance Cost for General Liability Coverage by State
Your electrical business general liability coverage costs vary by location. Alaska offers the most savings at $83 monthly (versus the $112 national average), while New York costs $131 monthly, giving you concrete data for business planning.
| Alabama | $111 |
| Alaska | $83 |
| Arizona | $107 |
| Arkansas | $108 |
| California | $126 |
| Colorado | $112 |
| Connecticut | $123 |
| Delaware | $122 |
| Florida | $122 |
| Georgia | $115 |
| Hawaii | $122 |
| Idaho | $107 |
| Illinois | $124 |
| Indiana | $110 |
| Iowa | $108 |
| Kansas | $110 |
| Kentucky | $105 |
| Louisiana | $129 |
| Maine | $98 |
| Maryland | $108 |
| Massachusetts | $119 |
| Michigan | $107 |
| Minnesota | $106 |
| Mississippi | $113 |
| Missouri | $112 |
| Montana | $112 |
| Nebraska | $107 |
| Nevada | $128 |
| New Hampshire | $112 |
| New Jersey | $128 |
| New Mexico | $114 |
| New York | $131 |
| North Carolina | $98 |
| North Dakota | $98 |
| Ohio | $105 |
| Oklahoma | $108 |
| Oregon | $105 |
| Pennsylvania | $130 |
| Rhode Island | $124 |
| South Carolina | $116 |
| South Dakota | $106 |
| Tennessee | $110 |
| Texas | $114 |
| Utah | $107 |
| Vermont | $108 |
| Virginia | $103 |
| Washington | $128 |
| West Virginia | $119 |
| Wisconsin | $111 |
| Wyoming | $104 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Electrical Business Insurance Cost for Workers’ Compensation Coverage by State
Your electrical business cost for workers' compensation varies by state. North Carolina offers the lowest rates at $49 monthly and New York the highest at $67 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Electrical Business Insurance Cost for Professional Liability Coverage by State
Like other types of coverage, your electrical business's cost for professional liability varies by state. The national average for E&O insurance is $65 monthly, with North Dakota offering the lowest rates at $56 and Louisiana the highest at $80 monthly.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Electrical Business Insurance Cost for BOP Coverage by State
Business owner's policy rates vary widely for electrical contractors across states. Monthly premiums range from $143 in North Carolina to $194 in New York for comparable coverage.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Electrical Business Insurance Cost
Insurance costs for your electrical business are based on several factors that insurers review to set premiums. Understanding these variables helps with budget planning. We break down these cost factors below.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas prone to severe storms or with high electrical fire risk increases your risk profile, and state differences in electrical contractor licensing requirements create substantial premium variations.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single electrical fire or worker injury claim can substantially increase your general liability rates at renewal.
Types of properties serviced
Commercial buildings and industrial facilities carry higher liability risks than residential properties. Working in healthcare facilities or data centers requires specialized safety protocols and insurance coverage due to the critical nature of electrical systems and potential business interruption risks.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding employees increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
High-voltage installations, commercial wiring, and emergency repair services carry different risk levels. A company offering only basic residential electrical work faces lower premiums than one handling industrial electrical systems or working with high-voltage equipment.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. For example, a solo residential electrician earning $75,000 annually pays less than an electrical contracting company with $1 million in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
More expensive electrical testing equipment, specialized tools, and service vehicles require higher coverage limits, increasing your premiums. A company using advanced diagnostic equipment and multiple service vehicles needs more coverage than one with basic tools.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Electrical Business Insurance
Smart shopping and risk management strategies can help electrical contractors find affordable business insurance coverage. We've identified proven methods below to lower your premiums both now and as your safety record improves.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your electrical business needs prevents overpaying for unnecessary coverage. Essential policies include general liability for customer injuries, workers compensation for employee protection, and commercial property coverage for tools and equipment. Professional liability insurance protects against claims of faulty workmanship.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for identical coverage. Request quotes from at least three companies to find the best rates. Consider working with an independent agent who can compare quotes from multiple carriers on your behalf.
- 3
Bundle your coverage types
Insurance providers typically offer substantial discounts for bundled policies. Combining general liability, commercial property and commercial auto insurance with one carrier often results in significant savings compared to separate policies.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This strategy works well if you have sufficient cash reserves to handle minor claims out-of-pocket.
- 5
Pay annually instead of monthly
Monthly payment processing fees can add up quickly. Paying your premium annually often qualifies you for additional discounts and eliminates these extra charges.
- 6
Review and adjust your coverage annually
Your insurance needs change as your electrical business grows. Review your policies yearly to ensure coverage matches your current operations and staff size. Remove unnecessary coverage and adjust limits based on your business evolution.
Insurance for Electrical Business Cost: Bottom Line
Electrical business insurance costs range from $58 to $166 monthly, with your location, claims history and business size driving your actual premium, and getting quotes from multiple insurers, bundling policies, choosing higher deductibles and paying annually helps you find more affordable rates.
Electrical Business Insurance Cost: FAQ
Our insurance experts break down the most common questions about electrical business insurance costs and provide straightforward answers below.
What is the cheapest type of electrical business insurance?
Workers' compensation insurance costs $58 monthly, making it the most affordable option for electrical businesses. Most electricians need general liability insurance ($113 monthly) to protect against customer injuries and property damage.
How much can I save by bundling my electrical business insurance policies?
Bundling business insurance policies through a BOP offers significant savings. Many insurers provide discounts when combining multiple coverage types under one policy.
What factors make my electrical business insurance more expensive?
Electrical business insurance costs can be expensive depending on location risks, claims history, worker count, service types, equipment value and credit standing.
Should I choose a $500 or $2,500 deductible for my electrical business insurance?
Higher deductibles mean lower monthly premiums but require more out-of-pocket costs when filing claims. Choose based on your financial stability and claim frequency expectations.
How much does workers' compensation cost for electrical businesses by state?
Workers' compensation costs for electrical businesses vary by state, ranging from $49 monthly in North Carolina to $67 monthly in New York. Costs reflect local risk factors and regulations.
Is business owner's policy (BOP) worth the extra cost for electrical companies?
BOP insurance costs electrical companies $166 per month on average. It bundles general liability, commercial property and business interruption coverage into one policy, offering better value than separate policies.
How often should I shop around for electrical business insurance quotes?
Shop for new quotes annually during renewal time. Compare at least three insurers to find better rates, particularly if your business has grown or changed services.
How We Determined Electrical Business Insurance Costs
We collected electrical business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small electrical businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the electrical industry.
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.