Affordable Insurance for Electricians and Home Town Service you can rely on:
The Insurance requirements for Electrical Contractors can be very complicated. This page is designed to provide a very clear and concise description about the types of Insurance and Bonds you will need in order to protect your Business and satisfy the requirements of your clients and the municipalities where you will work.
After reviewing, contact our agency and we will work with you to design the right coverage for your Business:
The Coverage You Will Need:
1. What is Electricians General Liability Insurance:
Unfortunately all businesses are subject to lawsuits. No matter how careful you are or how well trained your employees are, accidents still happen.
General Liability Insurance will protect your company from accidents that result in property damage, bodily injury and more.
- If you are a Commercial Missouri Electrical Contractor, you will likely be required to have a minimum of:
- $1,000,000 Each Occurrence Limit (the most the company will pay per claim) and
- $2,000,000 General Aggregate, (the most the company will pay per policy term)
How much is Electricians Liability Insurance:
The Premium charged by the Insurance Company will be determined by your estimated annual payroll for your Electricians during the policy term and subject to the actual (since you can only estimate your payroll at the beginning of the policy term) payroll at the end of the policy term (see the video for more details).
If you are just starting your Business and you will be the sole Electrician, a good Liability premium estimate would be between $500-$800 per year and this would apply for limits up to a $1,000,000 per occurrence.
As the Owner/Officer of the Business, your estimated payroll is not required. The Insurance Companies use a flat payroll amount for Officers.
The General Liability Policy has to issue correctly for Your Business:
General Liability (GL) coverage is not uniform. If you ask 2 Electricians how many pages their General Liability Policies have, you can almost guarantee you will get two different answers.
As the saying goes the "Devil is in the Details" – with GL policies the Devil lies in the Several Exclusion and Limitation endorsements that are often added (and should be removed) to an Electrician's GL Policy – not to mention the Additional Coverage endorsements that should be added.
The addition of any one of these Exclusion or Limitation endorsements or the absence of an Additional Coverage endorsement can prove devastating for a business owner at the time of loss.
There has to be a solid understanding of your Operations in order to make certain the policy issues correctly and Your Business is properly protected. This can not be accomplished with an online policy.
Electricians General Liability Insurance Video:
Contact us today:
2. Workers’ Compensation for Electrical Contractors
Electrical Contactors are required to have Workers’ Compensation in Missouri with even with just one employee (Non-contracting employers are required with 5 or more employees).
Missouri Electricians that do not have coverage may be subject to a significant financial penalty from the State. However, even more importantly, any Missouri Employer without Work Comp coverage is subject to Civil Suits brought against them by their injured employees.
It only makes sense to have Electricians Work Comp coverage to protect your employees and your business.
Electricians Work Comp Insurance Video:
Contact us today for a Work Comp Proposal for your Business:
Ph. 636-519-0059 or
3. Business Auto Insurance
One of the most common Insurance claims for Electricians are auto accidents. Your operation requires the use of good sized vehicles, with potentially a significant amount of added weight in project material and tools and a lot of weekly miles.
Claims latter in the day are more common as good hardworking technicians may be fatigued and more susceptible to distraction.
Due to the very sizeable Bodily Injury Claims that can result from Auto accidents, a Combined Single Limit* of no less than $1,000,000 to protect your business is strongly recommended. The difference in premium between $1mil and $500,000 is typically not that significant.
*Combined Single Limit = The limit of protection for Bodily Injury and Property Damage Claims.
4. What Bonds do Electricians Need:
License and Permit Bonds:
A license and permit bond guarantees that your business will operate in compliance with the building codes established by State, County, City, etc. The bond is a requirement to receive your Electrical Contracting License from a Municipality.
- Both St. Charles County and St. Louis County, MO require Electrical Contractors to have a $10,000 License and Permit Bond
- A good annual premium estimate is about $100 per Bond
Electricians License and Permit Bond Video:
Union Electrical Contracting Employers:
If you are a new Business and a Union Electrician you will be required, by the Union, to have a Wage and Benefits Bond (aka Wage and Welfare Bond).
This Bond is a guarantee that required wages will be paid to all employees and benefits (agreed to in the Collective Bargaining Agreement) will be paid to the Union.
If a MO Union Employer does not compensate employees or pay agreed benefits to the Union, the Union can seek recovery from the Bond Carrier.
A common required bond limit is $5,000 per employee with an approximate cost range of $25 - $50 per $1,000 of coverage (e.g. a $10,000 Bond will be roughly $250 - $500) for Employers with good credit.
Wage and Welfare Bonds are considered higher risk as they account for more claims relative to other types of Bonds. Accordingly, if an Employer has poor credit, this Bond could prove challenging to obtain.
Electricians Wage and Benefit Bond Explained:
Your Clients and Municipalities will want proof that your Business is Insured:
The Municipalities ,where you are licensed to operate, will require you to provide proof of Insurance.
Many Clients (especially Commercial Clients) will also require you to provide proof of Insurance before you are allowed to start a project (and maybe again before they will pay you for your work).
To do this, you will simply call or email us and let us know who requires proof of Insurance and we will send your Certificate of Insurance to your client and copy you.
The following video illustrates a sample Certificate of Insurance (COI) and what your client will be looking for on the COI.
If you are just staring your business or have been operating for years, contact our Office for an Insurance Proposal for your Business.
Contact us today for all of your Insurance and Bond Needs:
Ph. 636-519-0059 or
What Clients Say
Our company has benefited greatly by working with Dan and his agency. As a small business owner, I find myself being pulled in many directions...
-Roxanna - Unified1 Data Systems
Additional Coverage Considerations:
The following page provides details on other Lines of Coverage you may want to consider for your Business or potentially may be required to have contractually to start a project.
Additional Insurance for Electricians
St Charles County Electrical License - Insurance and Bond requirements:
The following page will provide details regarding the Insurance and Bond requirement for St. Charles County:
SCCMO Insurance and Bond Requirement
St Louis County Electrical License - Insurance and Bond Requirements:
The following page will provide details regarding the Insurance and Bond requirement for St. Louis County:
STLCO Insurance and Bond Requirements