Insure Your Electrician Business Today

What is Electrical Contractors' Workers' Compensation Insurance?

Accidents can happen out of the blue in the world of electrical work. Your employees might sustain injuries while handling equipment, working at heights, or dealing with hazardous materials. Electrical workers face the following risks:

• Electric shock from live electrical currents and dangerous equipment.
• Burns from electrical arcs or contact with live wires.
• Falls from heights while working on electrical structures.
• Danger from sharp tools and equipment that require precision and caution.
• Musculoskeletal strains from physically demanding tasks, such as carrying heavy electrical components and climbing.
• Potential fire and explosion hazards when dealing with electrical systems.
• Eye injuries due to flying debris or sparks during electrical work.

Workers' compensation insurance is specifically designed to cover these risks, supporting medical expenses and wage losses in case of job-related injuries.

Workers’ Compensation Insurance Benefits

A work comp policy provides:

• Medical care for the employee’s injury or illness
• Vocational rehabilitation to return the worker to health and transition them back to the workplace
• Disability benefits if the employee is unable to return to work after the injury
• Death benefits for surviving family in the event of an employee fatality
• Employer liability in the event of potential negligence
• Legal costs if the claim is challenged or if an employee sues for damages

Workers' compensation insurance fulfills legal requirements and demonstrates your commitment to your employees' well-being and safety.

How Much Does Workers' Compensation Insurance for Electrical Contractors Cost?

For electrical contractors, the cost of workers' compensation insurance is influenced by the size of the business, company payroll, and the company's past coverage and claims history.

The electrical contracting industry is categorized as mid- to high-risk. Within the industry, rates may differ depending on your company’s specific circumstances:

• Companies that specialize in high-voltage electrical work or intricate wiring installations face higher insurance costs.
• Businesses that offer specialized services like industrial equipment installation or electrical system design may experience increased insurance costs.
• Companies that extensively use heavy machinery, such as large-scale generators or industrial electrical equipment, can expect higher premiums.
• Firms operating during night shifts might face higher premiums, due to the increased risk of accidents in the reduced visibility.
• Companies with experienced and well-trained professionals may receive better rates as they are less prone to accidents.

Workers' compensation premiums are calculated based on employees' specific job functions. Some employees have distinct roles, while others have multiple responsibilities. These roles are classified using work class codes. It is crucial to accurately classify employees based on their primary tasks, as this can significantly impact your premium.

Note: Some electrical companies have constantly changing job sites, co-workers, or contractors for each project. In such cases, general contractors must either include subcontractors under their work comp policy or make sure they provide proof of their own insurance before starting work. Subcontractors are generally covered under the general contractor's liability unless they have their own insurance.

Is Workers' Comp Insurance a Legal Requirement for Electrical Contractors?

Workers' compensation insurance is not just a smart choice for electrical contractors—it's a legal requirement in many U.S. states. Failure to have this insurance can lead to hefty fines and penalties.

If your employees work in multiple states, or temporarily out-of-state, you may have to purchase insurance for all the states where your employees are located, according to each state's laws.