When you purchased electrical contractor insurance, you probably noticed that liability insurance was a big part of it. Liability insurance is particularly important because of the inherent risks of working with electricity. Here is what electrical contractor liability insurance usually covers.
It covers you if a client, client’s friend or child gets injured by what you are doing. Say you have your toolbox out, and someone trips over it, injuring themselves. Without insurance, you might be personally responsible for their medical bills. With insurance, you are covered.
It covers your defense against a lawsuit in certain situations, such as faulty work. If you are sued because a short destroys your client’s property, this will help with your defense. It is a tricky area of the law, and you could be out thousands defending yourself. It is better to be covered than to take the risk.
When your work physically injures someone, they will want you to cover their medical costs. No matter how safe you are or how many signs or warnings you have up, it is still possible that someone will ignore warnings or miss signs and injure themselves.
Regardless of how careful you, are mistakes and injuries are still possibilities. Electrician’s liability insurance protects you when something happens to your client or client’s property.