The good news? The right insurance coverage helps safeguard your business when the unexpected happens. Here are some of the top liability risks electricians face, along with how insurance can step in to protect you.
1. Electrical Fires and Property Damage
A miswired breaker, overloaded circuit, or defective component can spark an electrical fire or damage appliances. Even if you followed the code, you could still be pulled into a claim if you worked on the system.
How insurance helps:
- General liability covers property damage caused to a client’s home, business, or belongings.
- Errors & omissions (professional liability) can respond if the claim involves faulty design, consulting, or oversight.
2. Injuries to Clients or Third Parties
Job sites can be hazardous. An exposed wire, open panel, or even a tool left in a walkway can cause serious injury to a homeowner, subcontractor, or visitor.
How insurance helps:
- General liability covers third-party bodily injury claims (like medical bills, legal defense, or settlements).
3. Faulty Workmanship or Defective Installation
If an outlet or panel isn’t installed correctly, it can lead to equipment failure or even shock hazards. While most liability policies won’t cover redoing your work, they may step in if that faulty work causes additional damage.
How insurance helps:
- General liability may cover “resulting damage” (e.g., a miswired outlet damages appliances).
- Professional liability adds an extra layer of protection for design or consulting errors.
4. Employee or Subcontractor Injuries
Electricians work in physically demanding—and often dangerous—conditions. From ladder falls to electrical shock, injuries on the job are a real risk if you have employees or subs.
How insurance helps:
- Workers compensation covers medical expenses, lost wages, and rehabilitation for injured employees. Some states require it by law, even if you only have a few helpers.
5. Tool and Equipment Loss or Theft
Specialty tools and testing equipment are expensive to replace, and theft from job sites or vehicles is unfortunately common.
How insurance helps:
- Inland marine/contractors equipment coverage protects your tools against theft, damage, or loss—on site, in transit, or in storage.
Frequently Asked Questions
Do electricians need liability insurance?
Yes. Liability insurance is one of the most important coverages for electricians. It protects your business if you accidentally cause property damage (like an electrical fire) or if someone is injured because of your work. Many clients and contractors also require proof of liability insurance before hiring an electrician.
What risks are electricians most likely to be sued for?
The most common lawsuits against electricians involve property damage and bodily injury. For example, a wiring mistake that leads to damaged appliances, or an exposed wire that causes a client to trip and fall. Faulty workmanship claims are also common, though general liability typically only covers the resulting damage, not redoing the work itself.
Does general liability cover electrical fires?
Yes—if the fire is caused by your work and results in damage to a client’s property, general liability usually responds. However, coverage may not apply if the fire stems from intentional work outside of code or from defects in materials. For design or consulting-related issues, professional liability (errors & omissions) coverage may also be needed.
How much does electrician liability insurance cost?
Premiums vary depending on your business size, services offered, claims history, and location. On average, small electrical contractors can expect general liability insurance to range from a few hundred to a couple of thousand dollars per year. Bundling coverage (such as liability, workers compensation, and commercial auto) is often the most cost-effective way to protect your business.
Final Thoughts
Being an electrician means balancing precision and safety on every job. But even with the best practices, accidents and claims can happen. The right mix of liability, workers compensation, and equipment coverage ensures you can focus on your work without worrying about what’s around the corner.
At Leavitt Select Insurance, we understand the specific risks electricians face, from job site hazards to tool theft. Our team is here to help you find coverage that fits your business, so you can keep the lights on without worry.
Ready to review your coverage? Contact us today to connect with one of our local advisors.
