Utility Contractor Insurance

Utility Contractor Insurance That’s Made Just for You

There are tons of risks you face daily as a utility contractor. Whether you’re dealing with a customer’s electrical system or water pipelines, you know all too well how quickly things can take a turn if you aren’t prepared or don’t have the right precautions in place.

At Simply Business, we make finding the right utility contractor insurance at the right price fast and easy. With just 10 minutes of your time, we’ll help you find the policy that’s fit for your business needs.

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Business Insurance Policies Available for Utility Contractors:

  • General liability insurance
  • Workers compensation insurance


  • It can protect your business from certain claims.
  • It can cover damages caused by your negligence.
  • Proof of insurance can help clients feel good about your work.
  • It may be required where you’re located.
Utility contractors working in street

What Type of Insurance Should I Consider as a Utility Contractor?

Finding the right insurance policy for your utility contracting business may seem overwhelming. The good news is that utility contractor insurance can be customized to include a variety of policies, which can potentially protect you from everyday risks and liabilities you may face.

When building your utility contractor insurance plan, we may suggest considering these two core plans as part of your comprehensive policy:

Commercial General Liability Insurance

Do you have an office space where customers meet with you to discuss utility projects?

If you do, you’ll likely need commercial general liability insurance. Also commonly referred to as general liability (GL) insurance, this policy can typically cover the costs associated with incidents like third-party accidents, property damage, and bodily injury to a third party (e.g.,a customer or vendor).

General liability insurance is a foundational policy with the ability to protect you and your business from significant claims and costs. For instance, the average customer injury or damage claim, which general liability covers, can cost upwards of $30,000.

In other words, without GL insurance, you may have to pay those costs out of pocket.

How does general liability insurance function in real situations that utility contractors may face? Picture yourself working on a customer’s home. While working, you accidentally cause a fire, damaging a significant amount of the property because you forgot to turn the electricity off before you started your work.

What are you supposed to do?

In this situation, your GL insurance could typically cover the cost of your customer’s property damage, as well as any legal fees if the customer takes you to court.

To summarize, here’s what general liability insurance usually can cover:

  • Bodily injury to another person
  • Third-party property damage
  • Personal and advertising injury
  • Medical expenses
  • And more

Now here’s what general liability insurance usually doesn’t cover:

  • Damage to your own property
  • Professional services
  • Workers compensation or injury to your employees
  • Damage to your work
  • Motor vehicles while in business use
  • Expected or intentional injury or damage
  • And more

Workers Compensation Insurance

Do you have employees? If so, you may be required to carry workers compensation insurance whether they’re full-time, part-time, or temporary. This type of insurance can cover the costs associated with an injury or illness an employee sustains while on the job.

In other words, this type of insurance is critical for protecting both you and your employees.

Most states require business owners with employees to have workers compensation coverage, so be sure to verify your state’s laws.

Including workers compensation in your comprehensive insurance plan can be a crucial part of being a successful utility contractor. With the average work injury cost being $41,000, and 2018 yielding $170.8 billion in claims alone, workers compensation is essential for a utility contractor.

So, even if you have only a few employees on your team, having workers compensation insurance is an integral part of your business operations.

Workers compensation for utility workers can usually cover:

  • Medical payments
  • Lost wages
  • Rehabilitation expenses
  • Death benefits
Utility contractor turning valve

Why Should I Get Utility Contractors Insurance?

If you aren’t sure if you need utility contractors insurance, consider this: you could be the most careful utility contractor in your industry, but that doesn’t mean accidents and mistakes can’t happen. What happens if a customer’s house catches on fire because of a mistake you made? Or if a customer is harmed in some way as a result of your services?

Though you can likely reduce the risks and liabilities you face as a utility worker, having comprehensive utility contractor insurance ensures that you’re protected from any risks you may encounter.

Just take a look at the most common situations small business owners can find themselves in, as well as their average costs:

  • Reputational Harm — $50,000
  • Customer Injury or Damage — $30,000
  • Customer Slip and Fall — $20,000

Those claims and costs can be detrimental to a small business, especially one that is just starting out. If you have utility contractor insurance, your policy could cover some or all of the costs associated with claims and lawsuits you may face.

What’s more, did you know that up to 43% of small business owners polled reported being threatened with or involved in a civil lawsuit? This means that a customer could sue you for negligence or damages they’ve experienced from your services, even if you did everything right.

Protect your business with insurance coverage that understands your needs. At Simply Business, we make finding the best insurance policies for your unique business, well, simple. Just answer a few questions about your business, and you can start comparing free quotes from top insurers.

Plus, we can supply you with a certificate of insurance (COI), so you can provide proof of coverage to customers, vendors, and more.

Question marks

Utility Contractor FAQs

Because utility contractor insurance can be a bundle of policies, you may be required to carry some coverage, but not others.

For instance, perhaps your state requires you to carry workers compensation if you have employees, but not general liability insurance.

In general, utility contractor insurance premiums are income tax-deductible by the IRS. We recommend speaking to an accountant if you have questions about your specific business’s deductible expenses, though.

The amount of coverage your business may need will depend on a few factors:

  • The size of your business
  • Your business’s location
  • Your annual revenue and payroll
  • And more

If you aren’t sure what type of insurance coverage you need, our quote form is built to suggest insurance plan options for you based on answers provided.

If you have questions, our licensed insurance agents are available to assist you.

If you’re ready to check out your free quotes, it’s a good idea to have the following information available to make the process as fast as possible:

  • Annual revenue estimates
  • Payroll estimates
  • Information on any previous claims

It may, as your state may have different insurance requirements for utility contractors than another state (especially regarding workers compensation).

That’s why our quote process is so important when shopping for an insurance plan. Our questions can narrow down policies for you, based on your needs, as well as any requirements your state may have concerning insurance protection.

Utility contractors insurance depends on the policies you need to meet your business’s needs. If you opt for both core policies — general liability and workers compensation — your insurance plan can cover:

  • Bodily injury
  • Accidents and damages
  • Employee injuries
  • Negligence or alleged negligence
  • And more

The cost of utility contractor insurance varies, depending on your business and its unique needs. For the most part, you can expect your insurance premiums to be determined by:

  • The number of employees and subcontractors who work for you
  • Your business location
  • The type of services you provide
  • And more

Ready to see how much your utility contractor insurance may cost? Just click here and get free quotes from top insurers in the country.

Utility contractor in field

Why Choose Simply Business?

Simply Business is an online insurance platform that makes it easy to compare the best policies and quotes from top insurers. We’re one of the fastest-growing online providers of small business insurance, with thousands of customers who trust us to protect their businesses.

Why choose us?

  • We’re fast and affordable. You have a lot on your plate, and you don’t have time to worry about your insurance coverage. Our policies are fast, affordable, and ready when you are.

  • We’re flexible. Your business changes over time, so you need an insurance policy that can keep up. We’re here to help make sure you’re protected.

  • We understand your business’s unique needs. You deserve an insurance policy that gets your business. We can help you get that coverage.

You’ve worked hard to build a successful utility contractor business, and you should have an insurance policy that protects that hard work.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.

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