Electrician Insurance Cost & Coverage Guide

Q: If I accidentally drill into a water pipe while running wire, is the resulting water damage covered by my general liability insurance?

Yes. General liability insurance is designed to cover accidental property damage to a third party. The cost to repair the water-damaged drywall, flooring, and any other affected areas would typically be covered, up to your policy's limits.

Q: Are my expensive testing meters and power tools covered if they are stolen from my locked work van?

Yes, if you have Contractor's Tools & Equipment insurance (also known as inland marine insurance). This policy is specifically designed to protect your professional gear from theft or damage while it's away from your primary business location.

Q: If an employee gets an electrical shock and needs medical attention, which policy covers their expenses?

Their medical expenses and lost wages would be covered by your Workers' Compensation insurance. This policy is required in most states for businesses with employees and is essential for protecting both your team and your business from work-related injury costs.

Q: A client is suing me, claiming faulty wiring caused a fire a month after the job was done. Does general liability insurance help cover my legal defense costs?

Yes. This is a "completed operations" claim, which is a key part of general liability coverage. Your policy can help cover your legal fees and any resulting settlement or judgment if your work is found to have caused the fire.

Q: Is it tax-deductible?

Yes it can be — insurance premiums are usually considered a business expense. But always check with your accountant and your specific state for certain.

Q: Does my insurance premium change based on whether I do residential work versus larger commercial projects?

Yes, it often does. Commercial electrical work is typically considered higher risk than residential jobs due to the scale of the projects and higher liability limits often required by contracts. This increased risk is usually reflected in a higher insurance premium.

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Electrician Insurance Cost

Faulty wiring and improper electrical installations sometimes lead to fires, property damage, and potential injuries. Electrician insurance can help protect your business against these types of risks and help you avoid the shock of covering related costs entirely by yourself.

This guide will break down the essential insurance coverages for electricians, what they typically cost, and how you can get the right protection for your business. We’ve got you covered.

Electrician Insurance

Your job involves complex systems, expensive equipment, and working in clients’ homes and commercial properties. This exposes you to unique risks every day. Electrician insurance is a suite of policies designed to protect your business from the financial fallout of job site accidents, property damage, employee injuries, and lawsuits. Without the right coverage, you could be personally on the hook for costly legal fees, medical bills, and equipment replacement.

How Much Does Electrician Insurance Typically Cost?

The cost of electrician insurance varies, but most electricians pay a median price of $42 per month, or about $500 per year, for a policy package. Your final premium will depend on factors like your location, number of employees, the type of work you do (residential vs. commercial), and your claims history.

Here’s a look at the median costs¹ for the most common policies electricians purchase.

Insurance Policy	Median Monthly Cost	Median Annual Cost
General Liability	$37	$444
Workers’ Compensation	$119	$1,424
Tools & Equipment	$23	$281

¹Data from Simply Business customers specializing as “electricians” who purchased at least one or a combination of general liability, tools and equipment, or workers’ compensation policies from July 1, 2024 to December 31, 2024. Reflected price tiers may not include purchase of all available policies under electrician insurance.

What Insurance Does an Electrician Need?

General liability

This is the foundation of your insurance protection. It covers costs related to third-party accidents, property damage, and bodily injury claims caused by your work.

Why You Need It: While running wire in a client’s wall, you accidentally drill into a water pipe, causing a major leak and damaging drywall and flooring. Your general liability insurance can cover the cost of the water damage repairs.

Median Cost: $37/month

Contractor’s equipment and small tools (Inland marine)

Also known as inland marine insurance, this coverage can financially help protect tools and equipment, and depending on the policy, even if it’s in transport or stored offsite.

Why You Need It: Your locked work van is broken into overnight, and your expensive testing meters and other power tools are stolen. This coverage can help pay to replace them, minimizing downtime and financial loss.

Median Cost: $23/month

Workers’ comp

If you have employees—even just one apprentice—most states require you to carry workers’ compensation. This policy covers medical bills and lost wages for employees who get injured or become ill on the job.

Why You Need It: An employee receives a serious electrical shock while working on a live panel and needs to be hospitalized. Workers’ comp can cover their medical bills and a portion of their lost wages while they recover.

Median Cost: $119/month

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Frequently Asked Questions (FAQs)

If I accidentally drill into a water pipe while running wire, is the resulting water damage covered by my general liability insurance?

Are my expensive testing meters and power tools covered if they are stolen from my locked work van?

If an employee gets an electrical shock and needs medical attention, which policy covers their expenses?

A client is suing me, claiming faulty wiring caused a fire a month after the job was done. Does general liability insurance help cover my legal defense costs?

Is it tax-deductible?

Does my insurance premium change based on whether I do residential work versus larger commercial projects?

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