Roberts Insurance Group Blog
As with any contractor or business, electricians and electrical companies need a well-rounded risk management plan and insurance program. Something unique to electricians is the increased liability exposure they face long after they leave a job site. This is what makes insuring electricians a little unique compared to other contractors.
Once an electrician leaves a job site, the work they've done will carry liability risk for decades to come. Why? Because if there is an issue with the electrical installation, it usually doesn't present a problem until down the road. When a claim does arise, it is typically much larger and causes much more damage than claims with other trades and contractors. House and building fires from electrical systems are much larger claims, both for property damage and bodily injury, than the claims we see with other artisan contractors like plumbers, painters, HVAC contractors, landscapers, and roofers. This is why it is so important to make sure your electrical company's risk management plan and insurance package is properly put together.
What Makes Up A Good Insurance Package For Electricians?
As with all businesses, electrical companies need general liability insurance to protect them from bodily injury and property damage claims that they may be liable for. General liability for electricians should also include completed operations coverage, so that the company is covered for any damages after the work is complete.
Business Property and Inland Marine
Electricians tend to carry a lot of tools and materials with them. It is vital that their tools are covered from losses anywhere their job might take them, which is why business property and inland marine coverage is necessary.
Not only is this coverage necessary to get on to a job site, it provides liability protection from any accidents while away from the job site as well. Electricians tend to be on the road a lot within a defined radius. With this exposure, it is necessary for electrical companies to have sufficient liability limits on their commercial auto policy.
As any business with employees, you need to carry workers comp in case your employees get hurt while on the job. Whether it is in an auto accident, job site accident, or a slip and fall at the warehouse, your employees medical expenses and lost wages will be paid by an insurance company so that your business doesn't go under after an accident occurs.
Contractors Errors And Omissions (E&O)
For electrical companies that work on larger projects, it is crucial to carry errors and omissions coverage. Why? Because if there is a claim that arises from your work, the subsequent damage would be covered by the General Liability. HOWEVER, the cost to fix/replace your work would not be covered without an E&O policy. For companies that are working on larger jobs, not having this coverage could cost you tens of thousands of dollars down the road.
What Makes Up A Good Risk Management Plan?
The key factor and driving force to reducing your insurance premiums, keeping your costs as low as possible, and increasing profits is to minimize claims. Having an insurance policy or package isn't enough. If you have frequent or sever claims, the cost for your coverage will skyrocket and you'll end up paying 2-3 times more than your competitor. The way to avoid this is to have a good risk management plan in place:
Having a formalized training program is necessary to limiting claims for your electrical company. This helps ensure jobs are done properly, which limits the number of claims along with the severity.
Return To Work Program
Accidents do happen and employees get hurt- even if you take every precaution. When employees get hurt, it is important to have a return to work program in place with light duties. This will get injured employees off of workers compensation and back into the workforce. Minimizing the amount that your workers comp carrier pays out for claims is one of the best ways to keep your workers comp premiums down long-term.
Driver training programs help promote good driving habits for employees that are driving company vehicles, which will lead to safer driving and less accidents. Other things employers are doing to limit claims is providing rewards for good driving, like bonuses or punishments for accidents, like forcing the employee to pay the deductible from their paycheck. Another great way to promote good driving is with the use of technology. There are GPS and telematics programs available that give driving data back to the home office, which allows the company to monitor and critique their employees driving habits.
Post Accident Reporting
Much like having a return to work program, post-accident reporting is crucial to limiting the fall out from job site and auto accidents. The sooner the claim is reported, the sooner the insurance company can step in to settle the claim. The more time that goes by, the more likely it is for attorneys to get involved and increase the severity of a claim pay out.
Job Site Inspections
Having random job site inspections is another great way to ensure your company is being as careful as possible. These spot checks will keep employees on their toes and ensure they're acting in accordance of company policy and OSHA compliance.
If you're an electrician or electrical company and your agent is not having these conversations with you, give us a call at The Roberts Insurance Group at 678-250-8133. We specialize in working for electricians and contractors and have the knowledge, insight, and carrier access to ensure your Georgia Electrical business stays safe and keeps your premiums as low as possible.
The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business.