St. Louis County Electrical License
Insurance and Bond Requirements
If you are applying for your St Louis County Electrical License, this page will briefly describe the Insurance and Bond requirements of the County.
To begin, you can obtain the License Requirements and Application on the County's Public Works, Electrical Licensing page - here is the Link:
Insurance Requirement - Liability Insurance:
As noted on their Requirements and Regulations form, St. Louis County Requires:
- ...proof of contractor’s liability insurance in the amount of at least $500,000
This is referring to General Liability Insurance.
What is Contractors Liability Insurance?
Contractors General Liability Insurance will protect your business from claims of bodily injury and property damage that occur as a result of the Electrical Services you provide.
Even if a business is determined not to be negligent, the cost and time to defend can be massive. A Contractors Liability Policy will cover this cost and if necessary appoint legal representation for you. This will not only protect your hard earned capital but also your time, allowing you to stay focused on your day to day operations.
Since mistakes can happen no matter how well trained Electricians are and the degree of damage caused by a faulty wiring mistakes can be significant, General Liability Insurance is vital protection for your business.
How much is Liability Insurance:
More often than not, the General Liability premium for an Electrical Contractor will be determined by the payroll of your Electricians. So the greater the payroll, the larger the premium (e.g. since more work is being performed, the carrier is assuming a greater exposure for potential claims).
However, if you are just starting and you (the owner/officer of the company) will be the sole Electrician, a good premium estimate is between $500 - $800 per year (this would also apply if you are required to have a $1,000,000 Liability policy. If you will be performing commercial projects, you will likely be required by your clients to have this limit.
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 a 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.
We represent companies that specialize in Liability coverage for Electricians. We will work with you to develop a premium quotation unique to the needs of your business and one that is very aggressively priced.
How do I provide proof of Liability Insurance?
As their requirements indicate, St Louis County will require you to provide proof of insurance, many of your clients may have the same requirement. In order to do this we will complete a Certificate of Insurance (COI) forward to the County and copy you.
The video at the top of the page provides a sample COI and details what the County will review to make certain your business has complied with their requirements.
What Bond is required by St. Louis County Electrical Licensing:
The form indicates the requirement of:
- An Indemnifying Bond in the Amount of $10,000
This is referring to a License and Permit Bond
A license and permit bond guarantees that you will comply with the ordinances of the County while operating your Electrical Contracting Business.
The following video shows a sample Bond and discusses how it will be completed for your business.
How much is an Electrician’s License and Permit Bond:
Since the required limit for the Bond is $10,000, a good estimate is an annual premium of $100.
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Additional Insurance and Bond Information for Electricians
Electricians Home Page
St. Charles County Electrical License - Insurance and Bond Requirements:
The following page will provide details regarding the Insurance and Bond Requirements for St Charles County
SCCMO Insurance and Bond Requirements: