What Kind of Insurance Do I Need for an Electrical Contracting Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 5
- 2 min read
Starting an electrical contracting business is exciting—but protecting it is essential. Whether you're wiring homes, installing lighting in commercial buildings, or handling fire alarm systems, your work involves risks. That’s why having the right insurance coverage is critical.
At Wexford Insurance, we specialize in helping electrical contractors secure tailored insurance solutions. This guide breaks down the types of insurance your business needs to operate safely, legally, and confidently.
Electrical work involves high-risk environments—live wires, ladders, power tools, and job sites. Without proper coverage, a single accident or equipment theft could derail your business. Insurance helps you:
Protect your business assets
Comply with licensing and contract requirements
Cover employee injuries and property damage
Build trust with clients and general contractors
Essential Insurance Policies for Electrical Contractors
This is the foundation of contractor insurance. It covers:
Third-party bodily injury (e.g., a client trips over your tools)
Property damage (e.g., accidental damage during installation)
Legal fees and settlements
If you have employees, this coverage is usually required by law. It pays for:
Medical expenses from work-related injuries
Lost wages
Rehabilitation costs
If you use vehicles to transport tools, materials, or employees, personal auto insurance won’t cover business-related accidents. Commercial auto insurance covers:
Vehicle damage
Liability from accidents
Theft or vandalism
Your tools are your livelihood. This policy protects against:
Theft from job sites or vehicles
Accidental damage
Replacement costs
If you operate from an office, warehouse, or storage facility, this coverage protects:
Buildings and structures
Inventory and equipment
Losses from fire, theft, or natural disasters
Optional Coverage to Consider
Professional Liability Insurance – Covers errors in design or consulting
Umbrella Insurance – Adds extra protection beyond your primary policies
Cyber Liability Insurance – If you store client data or use digital systems
How Wexford Insurance Helps Electrical Contractors
At Wexford Insurance, we work exclusively with contractors and construction professionals. We understand the unique risks electrical contractors face and match you with insurance programs that fit your business size, services, and budget.
Whether you're just starting out or scaling up, we’ll help you:
Compare quotes from top insurance carriers
Customize coverage for residential, commercial, or industrial work
Stay compliant with licensing and contract requirements
Final Thoughts
Insurance isn’t just a box to check—it’s a safety net that keeps your electrical contracting business running smoothly. From general liability to tools and equipment coverage, Wexford Insurance is here to help you build a strong foundation and protect what matters most.
