Electrical contractors work, every day, with "lightning in a wire”.  While electricians are skilled, careful tradespeople, they can make mistakes and occasionally those mistakes can be deadly. In April 2016, according to Canadian Contractor, a Niagara Falls electrical contractor was fined $537,550 for a faulty installation of a heated floor that burned and killed a senior. A civil lawsuit is currently pending. While this kind of incident is extremely rare, it is a cautionary reminder of the importance of proper safety and training policies as well as the importance of having the correct insurance in place. Here’s what to look for when sourcing customized commercial insurance coverage for electrical contractors.

Customized Insurance

The size and scope of electrician’s work projects can greatly vary. Some electricians may be sub-contractors for a large construction firm. Others may work on their own, doing smaller home repair projects. Others may work with machinery. There is not a one-size-fits-all package of insurance for electrical contractors. Various insurance companies offer different insurance products that may or may not be right for your business. It’s wise to consult with a broker who is familiar with an assortment of insurance companies and can create a customized package. Some of the kinds of insurance that electrical contractors should consider are:

·       Business Personal Property;

·       Contractor’s Equipment;

·       Goods in Transit;

·       Automobile Insurance;

·       General Liability;

·       Umbrella Insurance (this covers excess amounts over and above what general liability insurance offers).

Finding the Right Broker

The right broker should have extensive knowledge and experience in dealing with commercial insurance, particularly insurance geared to contractors. They should be constantly updating their understanding of legal issues and available insurance products. Look for a broker who is designated as a Chartered Insurance Professional (CIP). This certification by the Insurance Institute of Canada designates national standards in knowledge and skills, while adhering to a code of ethics.

According to the publication, The Ontario Electrical Contractor (put out by the Electrical Contractors Association of Ontario) it’s essential to ask a potential broker questions about insurance policies before agreeing to any terms: 

·       How long has both the broker (and the insurance companies they deal with) been in business?

·       What is the financial rating of the proposed insurance company?

·       What are the coverage limits?

·       What is the renewal process?

·       What is the claims process?

Ask the broker for a comprehensive risk analysis. A knowledgeable and experienced commercial broker should know the risks and variables of working as an electrical contractor. They should be able to suggest ways of reducing risks, thereby reducing rates. They should be able to break down the various kinds of insurance into "must have” and "would be good to have” categories and allow the client to choose what he or she is able to afford.

It is important to find customized commercial insurance coverage specifically packaged for electrical contractors. The right broker should inspire trust. They should have accumulated years of experience and cultivated a loyal clientele. Insurance is meant to give peace of mind, knowledge that if anything goes wrong, the company will be at your side, ensuring your business is quickly back up and running as smoothly as possible.