No matter how skilled the electrical contractor, designing and installing electrical systems is a profession with considerable safety and litigation risks. Not only can clients be unhappy with the work you do, but they could become injured if you make a mistake. Here are two types of electrical contractor liability insurance to protect you financially from these types of claims.
Contractors maintain a general liability policy to ensure they can take financial responsibility for accidents and minor legal disputes. It pays the medical bills of members of the general public injured on the job site as well as legal fees when someone sues for damages or copyright infringement.
Professional liability insurance is a separate policy that protects electrical contractors from lawsuits and injuries that result from work they performed. For example, if people sue because the wiring you installed gave them an electrical shock, professional liability insurance would cover your costs of legal representation. If the court finds you were negligent, however, you would be responsible for paying the medical bills on your own.
While general liability offers substantial protection, it is a good idea also to invest in professional liability insurance. Having it may mean the difference between keeping your business and losing it to lawsuits.