Insurance is not optional, and being adequately covered is not just legal protection - it’s financial survival. General Liability: covers property damage and bodily injury caused by your work. The standard minimum is $1M per occurrence, $2M aggregate. If a circuit you installed causes a fire three years later, GL covers the resulting claim.
Workers’ Compensation: covers your employees’ medical costs and lost wages if they’re injured on the job. In most states, it’s required as soon as you have any employees. WC rates are based on your payroll and your job classification (electrical contractors typically pay 4-8% of payroll). Shop this annually.
Builder’s Risk / Inland Marine: covers your tools, equipment, and materials while in transit or on a job site. Your personal auto policy does NOT cover commercial tools in your truck. If your $15,000 worth of tools gets stolen from your locked van, your auto policy won’t pay. Inland marine will. Rates are typically 1-2% of insured value annually - cheap for the coverage.