How Much Does Electrician Insurance Cost? 2025 Rates

In 2025, 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 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

General Liability Insurance

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

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if you’re working at a client’s house and accidentally knock over an expensive light fixture or damage their wall while drilling, general liability would help pay for the repairs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Cost factors include how much coverage you want, how big your business is, how often customers or other people are around your work area, and whether you hire subcontractors or need to add others to your policy.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $180 per month for electrician business.

A BOP bundles general liability insurance with commercial property insurance. This bundled policy helps protect your business from common risks, like customer injuries or damage to someone else’s property, as well as loss or damage to your own tools, equipment, or office space.

For example, if a client trips over your extension cord during a job and gets hurt, t he liability part of the BOP could help pay for their medical bills.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

The cost of a Business Owner’s Policy (BOP) for an electrician business depends on several things. These include how much coverage you need, how big your business is, how many people visit your work area, and how much your tools, equipment, and property are worth. The more risk or value involved, the higher the price of the policy may be.

Workers’ Compensation Insurance

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

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an electrician suffers a fall from a ladder while installing wiring and injures their back, workers’ compensation would cover their medical treatment, physical therapy, and a portion of their lost wages while they recover and are unable to work.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Commercial Auto Insurance

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

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if an electrician gets into an accident while driving a company van to a job site, this policy would cover the repair costs for the vehicle, as well as any third-party property damage or injuries resulting from the accident.

Typical policy limits are around $1 million combined single limit (covering both bodily injury and property damage).

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for deliveries.

Commercial Umbrella Insurance

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

Commercial umbrella insurance kicks in when your main policy reaches its limit, helping cover extra costs that go beyond that limit, up to the amount you choose for your umbrella policy.

The cost of commercial umbrella insurance mostly depends on how much extra coverage you want to add. Other factors that can affect the price include the size of your business, the type of work you do, and your past claims history. For electricians, this extra coverage can offer peace of mind, especially when working on large or high-risk projects.

Professional Liability Insurance

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

This type of liability insurance helps protect electricians if a customer claims they made a mistake, like doing faulty wiring or not following code. It’s also called errors and omissions (E&O) insurance.

Typical policy limits are $1 million per occurrence and $2 million aggregate

The cost of this coverage depends on things like how much protection you want, how big your business is, and the type of work you do. Insurance companies look at these factors when deciding your cost.

Contractor Tools & Equipment Insurance

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

Contractor tools and equipment insurance is a type of insurance that helps protect a contractor’s tools and equipment if they are lost and stolen. The price of contractor tools and equipment insurance depends on how much your tools are worth and the kind of work you do.

For example, if an electrician’s tools are in his van, and he finds that his van has been broken into and his tools are missing, this insurance will cover the cost to replace the stolen tools so he can get back to work quickly.

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.

How To Lower Your Electrician Business Insurance Costs

Running an electrician business comes with many expenses, but your insurance bill doesn’t have to be one of the biggest. While you can’t go without proper coverage, there are smart ways to reduce your premiums without compromising on protection.

Here are some helpful tips to reduce your electrician insurance expenses:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately.

If you also need workers’ compensation, bundling both through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often offer discounts to electrician businesses that commit to a policy for the long term. Instead of renewing your coverage every year, ask your provider if they give multi-year discounts for signing a two- or three-year agreement. This can help lock in lower rates and save you money over time.

3. Implement Safety Measures

Accidents can be costly for both your business and your insurance provider, but reducing risk can help lower your premiums over time. By creating a safer work environment, you show insurers that you take safety seriously.

For example, making sure ladders and tools are in good condition, keeping job sites clear of tripping hazards, wearing proper protective gear, and following lockout/tagout procedures when working with electrical systems can all reduce the chance of injuries.

4. Create A Safe Working Environment

A strong safety program can help lower your workers’ compensation insurance costs. This means training your team on safe work practices, such as proper ladder use, handling electrical tools correctly, and wearing personal protective equipment (PPE).

You should also have clear emergency plans in place and regularly review safety protocols with your crew. When your business has fewer accidents and injuries, it leads to fewer claims, which can result in lower premiums over time.

5. Adjust Your Deductible

Your deductible is the amount you pay out of pocket before insurance coverage kicks in. Choosing a higher deductible can significantly reduce your monthly premiums. Just make sure you can comfortably cover that amount if a claim arises.

By taking these steps, you not only save money but also make your business safer, and more resilient.