What business insurance does an electrical contractor need?
Protect your business and meet your legal requirements
Updated 11/2/26
Your electrical contracting business powers homes, businesses and infrastructure. Unfortunately, your work is high risk by nature. One surprise expense (a wiring-related fire, a worker injured on a job site or a client who sues you for faulty installation) can put your whole company at risk. We believe in your business and want you to have affordable insurance that meets state requirements and protects your property, team and income. Avoid shocks of the financial kind with this quick guide to:
- The most recommended coverages for electrical contractors
- Coverages that may be legally required
- Some typical costs of electrical contractor insurance
- How to save with fast quotes from top-rated insurance carriers
SHORT SUMMARY (because we know you're busy powering up!)
- Electrical contractors face property-damage, job-site injury and equipment risks that require customized coverage.
- Most electrical contractors start with a Business Owner's Policy, then add workers' compensation and commercial auto.
- A Business Owner's Policy for electrical contractors can save you money by bundling general liability, property insurance and business interruption insurance.
- General liability insurance covers injuries and property damage you cause to clients and others on the job, along with advertising-related claims.
- Property insurance helps repair or replace your office, shop, tools and equipment.
- Business interruption insurance replaces lost income if covered property damage forces you to temporarily shut down.
- Workers' compensation is required in nearly every state once you have employees.
- Commercial auto is required if you own or use vehicles for work. • Inland marine, a commercial umbrella and cyber insurance offer added protection depending on how you operate. • Working with Mylo can help you find the right coverage at the best value.
The 3 coverages most most electrical contractors need
Here are three essential coverages every electrical contractor should consider to stay protected and profitable:
1. Business Owner's Policy for electrical contractors
A Business Owner’s Policy (BOP) for electrical contractors is a smart starting point. It bundles key coverages into one affordable package – ideal for new or growing businesses. Your BOP typically includes:
GENERAL LIABILITY FOR ELECTRICAL CONTRACTORS covers legal and medical costs if a client or other non-employee is injured or their property damaged by your business and also protects you from advertising-related claims. Examples:
- A client trips over extension cords and suffers a concussion
- A wiring error causes damage to a homeowner’s appliances
- A competitor accuses you of copying their logo or slogan
ELECTRICAL CONTRACTOR PROPERTY INSURANCE helps repair or replace your office, shop, equipment and supplies if disaster strikes – like fire, theft, or vandalism. Examples:
- A client trips over extension cords and suffers a concussion
- A wiring error causes damage to a homeowner’s appliances
- A competitor accuses you of copying their logo or slogan
BUSINESS INTERRUPTION INSURANCE replaces lost income if you need to temporarily close due to covered property damage.
Based on actual Mylo data, a Business Owner's Policy for an electrical contractor typically costs $59–$123 a month. Not every contractor qualifies for a BOP. If yours doesn't, standalone general liability typically costs $49–$98 a month.
2. Workers' compensation for electrical contractors (required in most states)
Nearly every state requires workers' compensation once you have employees, whether they're full-time or part-time. The exact rules vary by state. This coverage provides medical care and replaces lost wages for staff injuries and shields you from most employee lawsuits. Examples:
- An electrician receives a shock or burn while working on a live panel
- An apprentice falls from a ladder or scaffold
- A worker has a back injury pulling wire or carrying equipment
Based on actual Mylo data, workers' compensation for an electrical contractor typically costs $91–$178 a month.
3. Commercial auto for electrical contractors (required in most states)
If you use company-owned or personal vehicles to transport materials, tools or employees, most states require commercial auto insurance.
- Helps pay for damages or injuries your vehicles cause to others or their property
- Can also pay for physical damage to your vehicles (optional)
Based on actual Mylo data, commercial auto for an electrical contractor typically costs $164–$327 a month.
Ready to get your free quote now and see how much you can save on these and other coverages you may need?
Depending on your business, you may also want:
1. Inland Marine (contractors tools and equipment insurance)
This helps electrical contracting businesses protect the valuable tools and equipment they bring to jobs. If yours are damaged or stolen while in transit or temporarily stored at job locations, this must-have coverage can repair or replace them. Examples:
- Meters and testers are stolen from a job site.
- Your generator hits the side of a swaying trailer and parts are broken
- Your power tools are stolen from a locked trailer at your client's home or business.
Based on actual Mylo data, inland marine coverage typically costs $39–$108 a month..
2. Cyber insurance for electrical contractors
If you accept card payments, send invoices online or store client data, you're at risk for cyberattacks. Cyber insurance helps you recover from data breaches, pay regulatory fines and manage PR fallout. Examples:
- Hackers access your client database
- A phishing email exposes employee payroll info
Based on actual Mylo data, cyber insurance typically costs $46–$129 a month.
3. Commercial umbrella for electrical contractors
Think of this as insurance for your insurance! A commercial umbrella policy provides extra protection when other key policies such as your general liability or commercial auto reach their limits—helpful when one electrical fire could lead to a very large claim.
Based on actual Mylo data, a commercial umbrella policy typically costs $33–$107 a month.
These coverages may be legally required:
Requirements depend on your state, so make sure you're covered before you hire your next stylist:
1. Workers' compensation (required in most states )
Nearly every state requires workers' compensation if you have employees, providing medical care and lost wages for injured staff. Some states set a minimum number of employees.
Based on actual Mylo data, workers' compensation for an electrical contractor typically costs $91–$178 a month.
2. Commercial auto (required if you use vehicles for business)
If you use company-owned or personal vehicles to get to job sites or haul tools and materials, your state requires auto liability coverage for damages or injuries your vehicles cause..
Based on actual Mylo data, commercial auto for an electrical contractor typically costs $164–$327 a month.
Mylo makes it easy to make a smart decision
Your amazing company deserves protection that keeps up with your business. Mylo has been innovating insurance for 10+ years and provided 100,000 policies to 75,000+ small business owners. Because we don't sell our own insurance, we can give you an objective recommendation and find you the best value from top carriers – at no cost to you.
In minutes Mylo will:
- Recommend the right coverage for your electrical contracting business
- Compare quotes from top-rated insurance carriers
- Find you the best combination of coverage and price
- Keep you feeling confident about growing your business!