How to Lower Your Electrical Contractor Business Insurance Cost

Nate Jones, CPCU, ARM, CLCS, AU
Jan 13
2 min read

Electrical contractors face high-risk jobs every day, making business insurance essential. From job-site injuries to property damage and vehicle accidents, proper coverage is critical—but insurance costs can add up quickly.

The good news? There are practical strategies to lower your electrical contractor insurance cost without sacrificing protection. Working with a specialized agency like Wexford Insurance ensures you get competitive quotes while maintaining comprehensive coverage.

Top Strategies to Reduce Your Insurance Cost

1. Compare Multiple Quotes

Insurance premiums can vary widely between carriers. Comparing quotes ensures you find the best price for similar coverage. Agencies like Wexford Insurance simplify this process and tailor quotes to your electrical contracting business.

2. Bundle Policies

Bundling general liability, workers’ compensation, and commercial auto coverage often results in significant discounts while simplifying policy management.

3. Increase Deductibles Strategically

Higher deductibles reduce premiums, but only if you can cover the out-of-pocket cost in case of a claim. Evaluate which deductibles make sense for your business.

4. Implement Strong Safety Programs

Fewer accidents and claims lead to lower premiums. Safety training, PPE enforcement, and job-site inspections demonstrate risk management to insurers.

5. Maintain a Clean Claims History

Minimizing past claims reduces risk perception. Address small incidents proactively and document safety measures.

6. Regularly Review Coverage

Your business evolves over time. Regular reviews ensure you’re not over-insured and that coverage limits match current risk exposure.

Essential Insurance Types for Electrical Contractors

When reducing costs, don’t cut essential coverage. Electrical contractors typically need:

General Liability Insurance – Protects against third-party injury and property damage.
Workers’ Compensation Insurance – Covers employee injuries; legally required in most states.
Commercial Auto Insurance – Protects vehicles used to transport tools and materials.
Professional Liability (Errors & Omissions) – Covers faulty installations or design errors.
Tools and Equipment Coverage – Protects expensive tools from theft or damage.
Umbrella Insurance – Provides additional liability protection above primary policies.