Electricians include anyone who installs, services, maintains and repairs electrical wiring. This can include those who work both on overhead power lines, underground cables and inside business or homes. From a carriers and an agencies’ perspective, this is a very good good industry to insure because it has different risks than say a day care center or a retail store. This is because the risk is fairly low and they are in constant supply all across the country.
A typical Business Owners Package (BOP) for electricians includes:
- General Liability
- Property Insurance
- Commercial Auto
- Inland Marine (Tools and Equipment Coverage)
- Workers’ Compensation
Here is a brief description of the coverage and the risks related to each coverage for electricians.
General Liability
A Commercial General Liability Policy is required by law in most states. It covers exposure to the electrical contractors at their own location or on the premises of someone they are contracting for. Electrical voltage is the most obvious risk in this industry. A few other exposures to be aware of include bodily injury both to yourself and to other contractors at the work-site, falls from heights and falling tools if you are working at heights and slips and falls around the work-site can pose a risk because the work-site is typically not occupied only by the electrical contractor.
Property Insurance
Property Coverage for an Electricians would apply to his own office and storage areas. It would not apply to the buildings he is working on off-site. That would be covered by a General Liability Policy. One of the main risks In relation to a property insurance policy is vandalism. Frequently the premises is not big and might only include an office and storage area for tools. The tools are a prime target for vandals and thieves.
Commercial Auto
Automobile liability exposure is usually limited to transporting workers, equipment and electrical cables to and from job sites. The hazards depend on the type and use of vehicles, and radius of operation with the main hazards being upsets. The radius is a big part of the exposure because the more time/distance the workers cover in the vehicle the greater the exposure.
Inland Marine (Tools and Equipment Coverage)
Inland Marine Coverage covers tools and equipment both owned and rented. It is frequently referred to as Equipment or Floaters Coverage. Equipment coverage comes from the fact that much of what is covered under this policy is just that, Equipment. The Floaters reference comes from the fact that this is the type of coverage a business must buy for equipment that is in transit.
Workers’ Compensation
Workers’ Compensation is the other policy that is required by law in nearly every state. Workers’ Compensation might not be necessary depending on the state you work in, how many employees you have and if your general contractor requires this coverage for contract.
Workers’ Compensation is designed as the exclusive remedy when injury occur as a part of normal business operations. As part of this exclusive remedy, employees give up the ability to sue for damages, but in return the reassurance that if they are hurt they will be provided medical costs and some lost wages. Employers gain the peace of mind that they will not be sued for injuries that occur as a part of normal business operating procedures. Now this does not cover the employer when the business is negligent or if the injury was intentional.
Here are the most common business insurance classification for Electrical Contractors:
SIC Business Insurance Codes:
- 1731- Electrical Work
- 1623- Communication and Power Line Construction
- 7629- Electrical Repair Shops
NAICS Liability Classifications:
- 238210- Electrical Contractors and Wiring
- 237130- Power and Communication Lines Construction
- 811211- Electronic Repair Shop
- 811219- Other Electronic Precision Equipment Repair
Business ISO General Liability:
- Code: 92478- Electrical Work Inside Buildings
- Code: 92451- Electrical Apparatus- Install, Service, Repair
- Code: 92446- Electrical Light or Power Line Construction
Common Workers Compensation Class Codes:
- 5190- Electrical Wiring Within Buildings
- 3724- Machinery and Equipment Installation and Repair
- 7538- Power Line Construction