We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more.
Business insurance is a smart investment for electricians. If you run a business with a few employees, a business owner’s policy (BOP), commercial auto insurance, and workers’ compensation may be sufficient for your needs. If you don’t own commercial property, you might be interested in general liability instead of a BOP and inland marine or tools and equipment coverage.
Many commercial insurance companies offer coverage to electricians, but some are better suited to certain types of business owners. To find the best electrician insurance companies, we compared the top providers based on important features like financial strength, available coverage, policy limits, state availability, and online purchase options.
5 Best Electrician Insurance Companies
- Best for Small Businesses: Insureon
- Best BOP: NEXT Insurance
- Best for Large Small Businesses: The Hartford
- Best for Comprehensive Coverage: Farmers
- Great Customer Satisfaction: Nationwide
- Our Top Picks
- NEXT Insurance
- The Hartford
- See More (2)
Best for Small Businesses : Insureon
Insureon offers the best coverage for small electrician businesses as it represents a number of different insurance companies. A wide range of coverages is available and policies are sold in all 50 states.
Can get a quote and purchase coverage online
Policies sold in all 50 states
Can download certificates of insurance online
$1 million revenue limit for a BOP
Insureon specializes in small business insurance, so it’s an excellent provider for small electrician companies. Whether you recently started working solo as an electrician or have a small team, Insureon offers a variety of policies that can provide the protection you need.
Some of the coverage types that Insureon sells include BOPs, professional liability, general liability, workers’ compensation, business personal property, commercial auto, builder’s risk, and equipment and tools insurance. You can also add business renter's insurance, data breach insurance, and electronic data liability coverage.
Insureon operates as a digital insurance marketplace and relies on highly rated partner insurers to underwrite its policies. Some of the insurance companies in Insureon’s network are Nationwide, Liberty Mutual, The Hartford, and Chubb.
Depending on your coverage needs and location, you may get matched with quotes from several of Insureon’s partner companies. However, you don’t always get to choose the underwriter. And electricians that bring in more than $1 million in annual revenue will need to consider another provider for a BOP.
Best BOP : NEXT Insurance
NEXT Insurance is a great provider for electricians who want a BOP. The company also offers bundling discounts if you need multiple policies.
Can buy coverage online
Policy bundling discount
Mobile app for policy management
BOPs are not sold in every state
Doesn’t offer builder’s risk coverage
Based on our review of some of the top commercial insurance providers, we found that NEXT is the best option for BOPs.
NEXT's BOPs are available with up to a $2 million aggregate limit for general liability insurance, and a $3 million aggregate limit for commercial property insurance to small businesses with less than $8 million in annual revenue. NEXT’s BOPs are available in 46 states.
In addition to BOPs, NEXT also sells many common types of business insurance, like professional liability insurance, workers’ compensation, inland marine insurance, cyber liability insurance, and equipment and tools coverage.
You can get a BOP quote and purchase coverage through NEXT’s website. You can also download the free iOS or Android mobile app to download certificates of insurance (COIs), file claims, and pay your premiums. You can also save up to 10% by bundling two or more commercial policies from NEXT.
Best for Large Small Businesses : The Hartford
If you’re scaling your electrician business, you might consider buying insurance from The Hartford, which has high revenue and policy limits.
Excellent financial strength
High revenue limits
High coverage limits
Rated below average by J.D. Power
More complaints than expected
Can’t purchase coverage online
The Hartford stands out for its high revenue and coverage limits, which can be beneficial for larger small electrician businesses.
Businesses can have up to $50 million in annual revenue and still qualify for a BOP or stand-alone general liability insurance from The Hartford. For BOPs, general liability limits are available up to $2 million per occurrence and $4 million aggregate; commercial property liability limits are available up to $1 million per occurrence and $1 million aggregate.
Other policies available from The Hartford include data breach insurance, professional liability insurance, workers' compensation, commercial auto insurance, commercial property insurance, general liability insurance, and business income insurance.
Although The Hartford is a reputable insurance provider with excellent financial strength, there are some downsides to consider. For example, the company has more complaints than expected for its size, according to the National Association of Insurance Commissioners (NAIC), and you can’t purchase a policy online.
Best for Comprehensive Coverage : Farmers
Farmers offers a wide variety of insurance policies and endorsements for electrician businesses.
Good selection of policies for electricians
High coverage limits
No online quotes or online purchase
No professional liability insurance for electricians
Low BOP revenue limits
If you’re looking for comprehensive insurance protection for your electrician business, Farmers may be a good choice.
Farmers sells many types of insurance that can benefit electricians, including BOPs, general liability insurance, workers’ compensation, business personal property insurance, commercial auto insurance, builder’s risk insurance, and equipment and tools coverage.
We also like that Farmers offers high coverage limits for certain policies. For example, you can get general liability insurance with a $5 million per occurrence limit and a $5 million aggregate limit, which are some of the highest general liability limits for small businesses of providers we reviewed.
While Farmers can be a good option for electricians who want the most coverage, you won’t be able to get a quote or purchase a policy online. Additionally, Farmers doesn’t sell business insurance in all states, and annual revenue must be under $1 million annually to qualify for a BOP.
Great Customer Satisfaction : Nationwide
Out of the best electrician insurance companies we reviewed, Nationwide stands out as having the best customer satisfaction rating.
High J.D. Power rating for customer satisfaction
A+ (Superior) financial strength rating
Coverage limits for most policies aren’t disclosed online
Policies not sold in every state
Limited professional liability coverage
Nationwide ranked third in J.D. Power’s 2022 U.S. Small Commercial Insurance Study, out of 10 of the largest insurance companies for small business insurance. These rankings are based on factors like claims, agent interactions, price, and policy options.
In addition, Nationwide has an A+ (Superior) financial strength rating from AM Best, which is one of the highest financial strength ratings of the companies we reviewed.
Nationwide offers a good selection of policy options for electricians in select states, including BOPs, general liability insurance, workers’ compensation, business personal property insurance, builder’s risk insurance, accounts receivable insurance, and equipment and tools insurance.
You can also purchase professional liability insurance from Nationwide, but policies are only available to retail businesses. It’s not the best option if you’re looking for this coverage for your electrician business.
If you’re looking for the most comprehensive coverage, Farmers is a good pick, with a wide selection of policy types and high coverage limits. If you want an insurer with excellent customer satisfaction, we recommend Nationwide, which has has essential electrician coverages and was ranked highly by J.D. Power for customer satisfaction.
For small businesses or electricians that are just starting out, Insureon offers a good selection of coverages, most of which are available in all 50 states. But if your electrician business brings in more than $1 million annually, consider The Hartford, which is our top pick for larger small businesses.
Frequently Asked Questions
How Much Is Electrician Insurance?
The cost of electrician insurance depends on factors like your location, the number of employees you have, the types of insurance you get, and your policy limits. According to Next Insurance, electrician insurance premiums may be as low as $50 per month. Insureon finds that median rates are about $272 per month for workers’ compensation and $40 per month for tools and equipment coverage.
What Insurance Does an Electrician Need?
Electricians can benefit from several types of insurance, including general liability insurance, commercial auto insurance, or a BOP, which combines general liability and commercial property insurance. Other policies that electricians should consider are workers’ compensation, tools and equipment coverage, and business income insurance.
Do Electricians Need Liability Insurance?
In some states, electricians are legally required to carry general liability insurance. For example, in Ohio, electricians must show proof of liability insurance before they can begin working. In California, however, electricians are only required to submit a $25,000 bond.
What Is General Liability Insurance?
General liability insurance is a policy that protects you from the financial consequences of third-party bodily injury, property damage, libel, and slander claims. It pays for settlements with a third party, as well as your legal fees in a lawsuit. Most businesses can benefit from having general liability insurance.
Insureon. "Business Owner's Policy."
J.D. Power. "J.D. Power 2022 U.S. Small Commercial Insurance Study."
AM Best. "AM Best Affirms Credit Ratings of Nationwide Mutual Insurance Company and Its Key Operating Subsidiaries."
Next. "Electrician Insurance Costs."
Ohio Department of Commerce. "OCILB Examination Application."
Contractors State License Board. "Bond Requirements."
Insurance Information Institute. "Commercial General Liability Insurance."