As an electrician, you make sure to provide quality work that will stand the test of time, while also taking measures to protect the property and the safety of your customers. Though exercising caution and adhering to established industry protocols are effective means of accident prevention, you will also want to make sure to have general liability insurance in case of something unexpected. Understanding why electrician insurance is important and purchasing a comprehensive electrician liability insurance policy that is tailored to your profession will not only pay off in the event of a legal dispute, it will also open doors for your business.
Why Do I Need Insurance?
As an independent electrician, you are vulnerable to the same risks as almost every small business owner. These risks include another party being injured and blaming you for the injury, damaging a customer’s property, and damage to someone else’s reputation, sometimes called libel or slander. Any of these occurrences could result in a lawsuit against your company, or being asked to cover medical costs, either of which could land you with financial obligations that can significantly jeopardize your business. With a general liability insurance policy however, all fees incurred by any of these mishaps will be covered, which is a good reason for why electrician insurance is so important.
What Does Insurance Cover?
A general liability policy will cover you for all charges resulting from bodily injuries, property damage, and malfunctioning products.
As an electrician, it shouldn’t be too hard to imagine a scenario in which someone sustains an injury while on your work site. Whether it’s a customer who gets sprained ankle from tripping over a wire while checking to see what’s going on, or sparks flying and injuring someone passing by, electrician liability insurance will cover the costs involved in both the actual treatment of the injury and any legal proceedings that may follow.
Similarly, if you cause damage to a client’s property while working – for example, you knock over an expensive vase with your toolbox – your insurance company will pay bills you might be forced to cover should you need to defend yourself in court.
General liability insurance also provides financial support should you a claim be made against you for harming someone’s reputation, be it that of a customer or a competing electrician. The introduction of social media has made it easier than ever to reach out to potential clients and promote your business, but it also presents more opportunity to commit punishable acts like libel or slander without even realizing you’re doing so.
The reality is, you can find yourself confronted with a lawsuit if something goes wrong, even years after you’ve completed a job. When it comes to your lawyer’s bill, potentially costly court fees, and the amount the judge rules you owe to the plaintiff, your general liability insurance will absorb the costs.
How Can Insurance Benefit Me?
In addition to helping you to avoid financial loss, electrician insurance can play a big role in setting yourself up for financial success.
There are more and more individuals and businesses that will only sign a contract with an electrician once they have presented a Certificate of Insurance, often with the customer added as an Additional Insured. Even when it comes to clients with less formal hiring protocols, having an insurance policy in place, and a certificate showing that on-hand, sends the message that you are professional, responsible, and someone they can trust.
Finally, securing the appropriate insurance policy will give you something that can rarely be purchased: peace of mind. Although you will certainly take every measure to ensure you maintain a safe work environment and provide quality service, knowing that you’ll be taken care of should something go wrong will give you the freedom to focus on your work without fretting over all of the “what ifs.” With a strong insurance plan in your pocket, you can pursue and approach new potential clientele with confidence, one more reason why electrician insurance makes sense.
A good electrician will recognize the risks involved in the job and exercise great care to prevent injury or damage. However, none of us is immune to accidents, and even something as simple as a fall can become a heavy expense. Armed with a comprehensive and affordable liability insurance policy, you can go about your work knowing you’ve got something to fall back on should unfavorable circumstances arise.