Electrical work carries a risk most trades never face: a mistake can stay hidden in a wall for months before it starts a fire. That is why insurers look closely at the kind of work you do, and why GCs and property managers rarely let an electrician on site without a certificate of insurance.
Licensing raises the stakes too. Most states license electricians, and many pair the license with a bond or proof of liability coverage. The good news is that residential and light commercial electricians often pay less for general liability than the construction average, as long as the work stays off roofs and away from high-voltage jobs.
What insurance do electricians need?
Here is how each type of electrician insurance fits a typical electrician business, from what clients and states usually require to what depends on how you work.
General liability
Usually requiredGCs and clients require it, and some states tie it to your license. Pays for injuries and property damage you cause to other people.
About $61 a month for electriciansLicense & surety bonds
Usually requiredMany states and cities require a bond to license. A guarantee to your customer or the state that you will follow the rules and finish the work.
Workers comp
Usually requiredRequired in most states once you have employees. Pays medical bills and lost wages when an employee gets hurt on the job.
About $140 a month for electriciansCommercial auto
Most carry itService vans and trucks. Covers trucks and vans you use for work, and the damage they cause.
About $275 a month for electriciansTools & equipment
Most carry itMeters, benders, and wire pullers. Replaces tools and gear that get stolen, lost, or damaged.
Business owners policy
Depends on your setupIf you run a shop or hold stock. General liability and business property bundled together, usually for less.
About $100 a month for electriciansHow much does electrician insurance cost?
The typical electrician business pays about $61 a month, or $732 a year, for general liability, based on published customer data. Your price moves with your services, revenue, crew size, claims history, state, and the limits you choose.
| Policy | Typical monthly | Typical yearly |
|---|---|---|
| General liability | $61 | $732 |
| Business owners policy | $100 | $1,200 |
| Workers compensation | $140 | $1,680 |
| Commercial auto | $275 | $3,300 |
Source: Insureon cost data for this trade. Yearly figures without a published annual number are the monthly figure times twelve. These are typical figures, not quotes.
Want a number for your setup? Try the contractor insurance cost calculator, or see ways to get cheap contractor insurance.
Common electrician insurance claims
- Electrical firesFaulty wiring or a loose connection can start a fire long after you leave. General liability with completed operations cover handles the damage claim.
- Code and workmanship claimsA failed inspection or a non-code install can bring a claim for property damage and rework costs.
- Shock and fall injuriesEmployees working near live circuits or on ladders face real injury risk. Workers comp pays their medical bills and lost wages.
- Higher-risk jobsSolar installs, roof work, and industrial or high-voltage jobs push prices up, so describe your work mix honestly when you compare.
Electrician license and bond requirements
Most states license electricians at the state level, and some license at the city level instead. License rules often include passing an exam, logging supervised hours, and showing proof of insurance or a bond. Check your state licensing board for the exact requirements where you work.
Confirm before you rely on this. Licensing and insurance rules change, and cities can add their own. Check with your state licensing board and a licensed agent before you bid.