Do Electricians Need a Business Owners Policy (BOP)?

Electrician installing light switch

The U.S. Bureau of Labor Statistics reports that they expect around 79,900 openings for electricians in the United States each year. The same report shows that the industry is projected to grow by 7% by 2031. But if you want your electrical business to grow at the same or better rate, you should make sure you have the right kind of insurance in place.

Without adequate insurance, you could be exposed to several kinds of risks. This could include being sued for property damage, personal injuries, and more! A Business Owners Policy (BOP) could help protect your business from these types of risks.

Join us as we explore what BOP insurance includes and why it can be essential for electricians.

What Is a Business Owners Policy (BOP)?

A Business Owners Policy is a comprehensive package of insurance. A BOP from PolicySweet combines the following coverages into one bundle:

  • General liability insurance
  • Business property insurance
  • Cyber insurance

Buying them in a single package could be easier to manage compared to taking out three separate policies.

Why Electricians Obtain BOP Coverage

This can be ideal insurance for electricians. It could give you “peace of mind” that if anything goes wrong, you could be compensated for losses.

In many states, electricians might need certain types of insurance to keep their contractor license valid. Your customers might also expect that you are fully insured before they sign a contract with you.

BOP - Three Insurances in One Package

A BOP from PolicySweet combines three coverages into one policy. General liability, business property, and cyber-risk coverages are included in the insurance package.

General Liability Insurance

The most basic type of insurance for electricians is general liability insurance. General liability insurance helps protect the interests of third parties. For an electrician, this could be your clients, their guests, and other visitors that interact with your business.

A third-party could sue you for:

  • Medical expenses
  • Lost wages
  • Pain and suffering

This coverage may protect your financial interests. It could cover the cost of damages as well as legal fees. Without general liability insurance, your company could be exposed to financial risk.

Third-Party Property Coverage

General liability insurance may also cover you if one of your employees accidentally damages a third party's property. If the problem was caused by your company's negligence, general liability insurance could cover the cost of the repairs.

Business Property Insurance

General liability insurance can be essential, but it provides zero coverage for your property. That's why BOP insurance includes business property coverage.

Business property refers to:

  • Tools and machinery
  • Computer equipment
  • Supplies
  • Furniture and fixtures at your place of business

Business property insurance can compensate you for property that is:

  • Stolen
  • Accidentally damaged
  • Vandalized

Some policies may also help your business to keep going while you get back on your feet. You may be able to file a claim to help cover payroll and other operating expenses that have been negatively impacted by property damage.

Cyber Insurance

It can be hard to see the connection between an electrical contractor business and cybercrime. But the fact is that your business may hold a lot of electronic data that hackers would like to get their hands on. This could include:

  • Customers' personal details
  • Customers' bank details

If you are the victim of a cyber-attack, how would you pay for the experts to investigate the breach? What about the costs of informing your customers and legal ramifications? Cyber insurance could help keep your business afloat if such a situation occurs.

Additional Insurance for Electricians

A Business Owners Policy goes a long way to providing the insurance coverage electricians might need. But it does not cover everything. In most states there is a requirement for employers to provide Workers' Compensation insurance.

Workers' Comp Helps Protects Employees

If one of your employees gets sick or injured as a direct result of their work, Workers' Compensation insurance can provide a safety net for them. It may help with expenses, including:

  • Lost wages
  • Medical expenses
  • Ongoing medical support

Workers' Comp Helps Protect Businesses

If your business does not take out Workers' Compensation insurance, you may face some steep costs. You may be held responsible for your employee's medical expenses and lost wages. Without coverage, you may also have to pay your own legal costs out of pocket.

To obtain comprehensive protection for your business, you might want to consider taking out BOP coverage and Workers' Compensation insurance.

Get Your Business Owners Policy Today

A Business Owners Policy can allow you to conduct business without constantly looking over your shoulder. You know that if the worst happens, you have insurance in place to call on.

At PolicySweet®, our agents can work with you to craft a Business Owners Policy that's right for your business. Start a quote online or call us at 1-800-625-8257!


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