How Much Does Electrician Insurance Cost? 2025 Rates

U.S. electricians can expect to pay between $50 and $70 per month for comprehensive business insurance, averaging $600 to $840 annually. The primary cost drivers are your location, type of work performed, business size, coverage types, years in business, safety practice and training.

How Much Does Electrician Business Insurance Cost?

The average electrician businesses in the U.S. pay between $600 and $840 per year for business insurance. That breaks down to roughly $50 to $70 per month. However, this is just a ballpark range and actual business insurance costs can vary widely depending on your specific situation.

An electrician business, just like any other business, has its own risks and insurance needs, so there’s no one-size-fits-all cost for coverage. An electrician doing basic home repairs and wiring jobs will pay much less for insurance than a large electrical contracting company that works on high-rise buildings, hires several workers, and handles high-voltage systems.

Many things affect what an electrician pays for insurance. For example, if you’re working in people’s homes fixing light switches and outlets, your risk is lower. But if you’re rewiring a big commercial building or installing industrial equipment, there’s a higher chance of accidents or damage, so your insurance will cost more.

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Type of electrical work (affects overall risk)
• Use of vehicles (affects commercial auto insurance)

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your electrician business.

Average Electrician Insurance Costs For Coverage Types

When it comes to protecting your electrician business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most electricians need.

• General liability insurance: $52 per month
• Business owner’s policy: $74 per month
• Workers’ compensation insurance: $209 per month
• Commercial auto insurance: $135 per month
• Commercial umbrella insurance: $60 per month
• Professional liability insurance: $70 per month
• Tools and Equipment insurance: $43 per month

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy for an electrical business is about $180 per month.

A BOP combines general liability insurance with commercial property insurance, giving electricians protection for both third party incidents and their own gear, office space, and materials. It can help pay for things like customer injury claims, building damage, or replacement of tools and equipment if they are damaged in a fire or break in.

Most BOPs include liability limits of $1 million per occurrence and $2 million aggregate, with separate property coverage based on the equipment and assets insured.

Pricing varies depending on how much equipment you own, whether you have a physical office or workshop, how many clients visit the premises, and the size of your electrical business.

Here are estimated average annual premiums across 10 states:

Note: Estimates are approximate annual BOP premiums for electrician operations based on typical market averages; actual premiums will vary with location, revenue, property value, coverage limits, and underwriting factors

General Liability Insurance

The average cost of general liability insurance for electricians is about $52 per month.

General liability protects against accidental damage to customer property, injuries to others, and claims related to advertising. If an electrician damages drywall while installing wiring or a customer trips over tools at the job site, this policy helps pay for repairs, medical expenses, and legal costs.

Electricians commonly select limits of $1 million per occurrence and $2 million aggregate.

Premiums depend on the size of the business, how often work is performed at customer sites, whether subcontractors are used, and the type of electrical work performed.

Average annual premiums across 10 states:

Note: Estimates reflect typical annual general liability premiums tailored to electrician operations in each state; actual premiums will vary with business size, services offered, claims history, location, and coverage limits.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for electrical contractors is around $209 per month.

This coverage pays for medical care, lost wages, and rehabilitation if an employee gets hurt while working. Electricians face risks like falls, electrocution, tool injuries, and strain from lifting equipment, making this coverage especially important for businesses with staff.

Costs vary by payroll size, employee roles, safety procedures, and past claims.

Average annual premiums by state:

Note: Estimates represent typical annual workers’ compensation premiums for electrician operations in each state; actual premiums will vary with payroll size, employee classifications, safety programs, claims history, and state regulations.

Commercial Auto Insurance

The average cost of commercial auto insurance for electricians is about $135 per month.

This coverage protects service vans, trucks, and vehicles used in the business. It covers collision damage, theft, vandalism, and liability if a work vehicle causes an accident. Since electricians often transport ladders, wiring, power tools, and materials, commercial auto is widely required.

Policies commonly include a $1 million combined single limit.

Rates depend on fleet size, vehicle use, driving records, distance traveled, and optional add ons like hired and non owned auto coverage.

Average annual premiums across states:

Note: Estimates are approximate annual commercial auto premiums for electrician operations based on market-average agency pricing; actual premiums will vary with fleet size, vehicle use, driving records, coverage limits, and underwriting factors.

Professional Liability Insurance

The average cost of professional liability insurance for electricians is about $70 per month.

Also called errors and omissions insurance, this coverage protects electricians if a client claims improper installation, code violations, faulty wiring design, or advice that leads to financial loss or property damage.

Many electricians choose limits of $1 million per occurrence and $2 million aggregate.

Rates depend on services offered, business size, past claims, and project complexity.

Average annual premiums by state:

Note: Estimates are approximate annual professional liability premiums for electrician operations in each state; actual premiums will vary with services provided, revenue, claims history, policy limits, and underwriting factors.

Commercial Umbrella Insurance

The average cost of commercial umbrella insurance for electricians is about $60 per month.

This policy increases the liability limits on existing coverage, offering added protection for claims that exceed primary policy limits. It is particularly useful for electricians working on commercial sites, large residential projects, or work involving high voltage systems.

Pricing is influenced by the amount of additional protection purchased and the underlying coverage carried.

Average annual premiums:

Note: Estimates reflect typical annual commercial umbrella premiums for electrician operations in each state; actual premiums will vary with liability limits, underlying coverages, claims history, business size, and underwriting factors.

Contractor Tools & Equipment Insurance

The average cost of tools and equipment insurance for electricians is about $43 per month.

This policy protects portable tools, testing devices, ladders, cable pullers, and job site equipment against theft, loss, and accidental damage, whether stored in vehicles, on site, or in transit.

Premiums depend on total equipment value and the type of electrical work performed.

Average annual state premiums:

Note: Estimates reflect typical annual premiums for contractor tools and equipment coverage for electrician operations in each state; actual premiums will vary with equipment value, business size, location, deductible choice, and underwriting factors.

Electrician Business Insurance Costs By Provider

Electrician business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: Estimates are based on average annual premiums for electrician businesses and typical coverage mixes; actual premiums will vary by location, services, payroll, claims history, and coverage limits

What Factors Impact Your Electrician Business Insurance Costs?

Electrician insurance premiums are carefully calculated by underwriters based on your business’s risk profile. Everything from the type of electrical work you do to your business location and past claims history can impact how much you’ll pay for coverage.

Here’s a list of primary factors that impact your electrician business insurance.

Location

Your location plays a big role in how much you pay for insurance. If you’re based in an area with a high number of claims, accidents, or property crime, your insurance rates may be higher.

Urban locations with heavy traffic and more job site risks often cost more to insure than rural or suburban areas. Additionally, different states have different rules for coverage, which can also affect pricing.

Type Of Work Performed

The kind of electrical work your business does will directly impact your insurance cost. Basic residential work, like wiring homes or installing outlets, is generally considered lower risk and usually comes with lower premiums.

However, if your business takes on more complex or dangerous jobs, such as commercial construction, high-voltage systems, or industrial projects, the risk increases. Higher risk means the insurance company may charge more to cover possible accidents or claims.

Business Size

The size of your business also affects your insurance cost. A small company with just one or two electricians will likely pay less than a large business with many employees, vehicles, and tools.

Larger operations face more potential risks, more workers means a greater chance of injuries, and more vehicles on the road increase the likelihood of accidents. As your business grows, your coverage needs increase, and so does the cost.

Coverage Type

The kind of insurance coverage you choose has a big impact on your total cost. If you only buy basic general liability insurance, your premium will be lower than if you add other types of coverage like workers’ compensation, commercial auto, tools and equipment protection, or umbrella insurance.

While broader coverage gives your business better protection, it also comes with a higher price tag.

Years In Business

How long you’ve been running your electrician business can also affect what you pay for insurance. New businesses are often seen as riskier because they haven’t yet proven their safety track record or built a claims history.

On the other hand, companies that have been operating for many years without frequent claims are viewed as more stable and responsible, which can lead to lower insurance premiums over time.

Safety Practices & Training

Insurance companies look closely at how seriously your business takes safety. If you provide regular training for your workers and follow strong safety procedures, it shows that you’re working to prevent accidents.

A clean safety record with few or no claims tells insurers that you’re a lower risk, which can lead to more affordable insurance. Investing in safety not only protects your team but can also save your business money in the long run.