Electrical Contractor Insurance Cost: What Should You Expect to Pay?
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 13
- 2 min read
If you’re an electrical contractor, understanding insurance costs is critical for budgeting and protecting your business. Electrical work comes with unique risks—electrical shocks, property damage, vehicle accidents, and employee injuries—so proper insurance coverage is essential.
But how much should you expect to pay, and what factors influence your rates? Working with an experienced agency like Wexford Insurance can help you get an accurate quote quickly and ensure your coverage fits your needs.
Factors That Affect Electrical Contractor Insurance Costs
The cost of insurance for electrical contractors depends on several factors:
Type of Work Performed – Residential, commercial, or industrial projects carry different levels of risk.
Business Size and Revenue – Annual revenue and number of employees impact premiums.
Claims History – Past claims or accidents can raise your rates.
Location – State regulations, local labor costs, and job site risks affect pricing.
Coverage Limits and Deductibles – Higher coverage limits or lower deductibles increase cost.
Bundled Policies – Combining liability, auto, and workers’ compensation often lowers overall premiums.
Typical Insurance Coverages for Electrical Contractors
Here’s what your insurance premiums are likely paying for:
General Liability Insurance – Covers bodily injury, property damage, and completed work.
Workers’ Compensation Insurance – Required if you have employees; covers injuries on the job.
Commercial Auto Insurance – Protects company-owned vehicles and tools in transit.
Professional Liability (Errors & Omissions) – Covers mistakes in design or installation.
Tools and Equipment Coverage – Protects expensive tools from theft, loss, or damage.
Umbrella Insurance – Adds extra liability coverage above standard policies.
Typical Costs for Electrical Contractor Insurance
Insurance premiums vary based on location, revenue, and coverage levels, but here are average annual cost ranges for common policies:
These are estimated averages. Your actual costs may vary depending on your business size, claims history, and coverage limits.
Typical Costs for Electrical Contractor Insurance
Insurance premiums vary based on location, revenue, and coverage levels, but here are average annual cost ranges for common policies:
Coverage Type | Typical Cost per Year |
General Liability Insurance | $400 – $1,500 |
Workers’ Compensation Insurance | $2,000 – $6,000 (varies by state & payroll) |
Commercial Auto Insurance | $1,200 – $3,000 per vehicle |
Professional Liability (Errors & Omissions) | $500 – $2,000 |
Tools and Equipment Coverage | $300 – $1,000 |
Umbrella Insurance | $400 – $1,500 |
These are estimated averages. Your actual costs may vary depending on your business size, claims history, and coverage limits.
How to Save on Electrical Contractor Insurance
Shop with an independent insurance agency like Wexford Insurance to compare multiple carriers.
Bundle policies to reduce premiums and simplify management.
Maintain safety programs and employee training to reduce risk.
Review coverage annually to adjust limits and avoid overpaying.
Why Choose Wexford Insurance
Wexford Insurance specializes in electrical contractor coverage and understands the unique risks your business faces. Their experts can:
Provide fast, competitive quotes from multiple carriers
Recommend policies tailored to your electrical contracting business
Ensure your business meets contract and licensing requirements
Offer ongoing support as your business grows
👉 Request a quote from Wexford Insurance today to get coverage and pricing that fits your business.
