The policies an electrical business carries
An electrician's biggest worry is a fire traced back to the work. Liability covers injury and property damage to others; your license board may also set minimums of its own.
| Policy | Average a month |
|---|---|
| General liability | $61 |
| Tools and equipment | $42 |
| Commercial auto | $275 |
| Workers' compensation | $140 |
| Surety or license bond | $10 |
| Business owner's policy | $100 |
| Professional liability | $67 |
| Commercial umbrella | $74 |
Averages are what Insureon's customers who are electricians pay, from Insureon's cost page; most of its customers have fewer than five employees. Across all its small business customers, general liability runs $265 to $3,030 a year.
Claims electricians plan for
- A fire is traced to a connection in a box you worked on
- A customer is shocked by a fixture you installed
- A drill bit goes through a water line in the wall
- A breaker you changed does not trip on a fault
Ask your agent, in these words:
- Would my policy pay if a fire is traced to a connection in a box you worked on?
- Would my policy pay if a customer is shocked by a fixture you installed?
- Would my policy pay if a drill bit goes through a water line in the wall?
- Would my policy pay if a breaker you changed does not trip on a fault?
Name the work you sell
A policy covers the work you describe on the application. From the electrical services list, name each of these and ask whether any is excluded: troubleshoot a dead circuit; replace outlets and switches; gfci and afci upgrades; light fixture or ceiling fan install; smoke and co alarm replacement; ev charger, level 2, hardwired; ev charger, level 2, plug-in; ev charger install, customer-supplied unit; panel upgrade for an ev charger; whole-home surge protection; generator inlet and interlock; holiday lighting, installed; outdoor and landscape lighting.
Testers, benders and the van's stock are what a tools and equipment policy protects. On the tools list, the items to list on the policy are conduit bender and a reaming tool; right-angle drill and auger bits; circuit tracer or breaker finder; cable puller or wire pulling lube and grips; multi-position ladder; label maker, and from the starter kit, lineman's pliers, diagonal cutters and needle-nose pliers; wire strippers sized for the wire you use most; insulated screwdrivers and nut drivers; non-contact voltage tester; multimeter.
State rules in the license
These are the insurance and bond lines in each state's electrical license rules, from our electrical license guide, which reads each state board's own pages. 34 of the 51 states we cover set an insurance or bond rule in the license itself. Click a state for the full license steps.
| State | Insurance in the license rules | Bond |
|---|---|---|
| Alaska | Proof of workers' compensation insurance where state law requires it, plus public liability and property damage insurance of at least $20,000 property damage, $50,000 injury to one person and $100,000 injury to more than one person. | Not set in the license rules we checked |
| Arizona | You must attest that you comply with workers' compensation insurance laws. | Residential specialty: $4,250 if yearly volume is under $375,000, or $7,500 at $375,000 or more. Commercial specialty: from $2,500 for $150,000 or less, rising with volume. Dual licenses combine both amounts. |
| California | Workers' compensation insurance, or an exemption form if you have no employees. | A $25,000 contractor bond. A separate $25,000 Bond of Qualifying Individual may be needed for an RME or RMO. |
| Colorado | Proof of compliance with workers' compensation and unemployment insurance laws for the contractor registration. | Not set in the license rules we checked |
| Delaware | Master and Limited electricians must show general liability insurance of at least $300,000. You can take the exam first, but the license is not issued until proof arrives. | Not set in the license rules we checked |
| District of Columbia | Not set in the license rules we checked | For regular voltage work, a $4,000 company bond and a $2,000 master bond. For low voltage work, $2,000 and $1,000. |
| Florida | Public liability of $100,000 per person and $300,000 per occurrence, plus $500,000 property damage, or a combined single limit policy of $800,000. You also need workers compensation or an exemption. | Not set in the license rules we checked |
| Hawaii | Bodily injury liability of $100,000 per person and $300,000 per occurrence, property damage liability of $50,000, plus workers compensation if you have employees. | A bond only if the board requires one. |
| Idaho | $300,000 liability insurance and workers' compensation insurance, unless exempted, filed after you pass the exam. | Not set in the license rules we checked |
| Iowa | Electrical contractors must keep a public liability insurance policy in force. Check with the board for the amount. | Electrical contractors must keep a surety bond in force. Check with the board for the amount. |
| Kentucky | Electrical contractors need general liability insurance of at least $1,000,000 and proof of workers' compensation and unemployment insurance compliance. | Not set in the license rules we checked |
| Louisiana | The board's checklist says insurance certificates are not required for commercial applicants. | Not set in the license rules we checked |
| Maryland | At least $300,000 general liability and $100,000 property damage. Umbrella coverage does not count. The State Board of Electricians must be the certificate holder. | Not set in the license rules we checked |
| Massachusetts | The board's consumer page says liability insurance is required by state law. | Not set in the license rules we checked |
| Minnesota | Liability insurance of at least $100,000 per occurrence, $300,000 aggregate and $50,000 property damage, plus workers compensation. DLI must be listed as certificate holder. | A $25,000 surety bond on a DLI approved form. |
| Mississippi | Proof of general liability insurance is required for every license and renewal. There is no minimum for residential licenses. Commercial licenses need at least $300,000 per occurrence or $600,000 aggregate. Send proof of workers comp if you have 5 or more employees. | Not set in the license rules we checked |
| Missouri | Liability insurance of $500,000. | No state bond. Post the bond each city or county requires where you work, and give the state proof of it. |
| Montana | Electrical contractors must comply with Montana workers comp and unemployment insurance laws, or hold an independent contractor exemption. | Not set in the license rules we checked |
| Nebraska | Electrical contractors and master electricians must keep public liability insurance in force as the board requires. | Not set in the license rules we checked |
| Nevada | Proof of workers comp coverage is required to get, keep and renew a license, unless you are exempt and sign an exemption affidavit. | A license bond set by the board at approval, from $1,000 to $500,000, based on license type, monetary limit, finances, experience and character. |
| New Jersey | General liability insurance of at least $300,000, or a bank letter of credit of at least $300,000. The Board must be the certificate holder. | A $1,000 surety bond in favor of the State of New Jersey. |
| New Mexico | Workers compensation insurance is required of all licensees. A sole owner with no employees may be exempt. | A $10,000 bond from a surety authorized in New Mexico, covering the full license period. |
| North Carolina | Not set in the license rules we checked | A statement of bonding ability is needed to activate an Intermediate or Unlimited license. |
| North Dakota | A licensee acting as a contractor must file proof of public liability insurance with limits of at least $500,000. | Not set in the license rules we checked |
| Ohio | Contractor liability insurance in your name, including completed operations, of at least $500,000. | Not set in the license rules we checked |
| Oklahoma | Active contractors need general liability of at least $50,000 combined single limit, with the CIB listed as certificate holder. | $5,000 license bond for an active electrical contractor. |
| South Carolina | Not set in the license rules we checked | Residential: $10,000 surety bond if you take jobs over $5,000. Commercial: a financial statement or surety bond for your group limit. |
| South Dakota | Contractors and Class B electricians need public liability insurance of at least $100,000 per occurrence and $300,000 aggregate for bodily injury. | $10,000 undertaking (bond) filed with the commission before licensing. |
| Tennessee | General liability and workers comp (or a valid exemption) are required. Minimum general liability is $100,000 for a monetary limit up to $500,000, $500,000 for $500,001 to $1,500,000, and $1,000,000 above that. | A CPA reviewed financial statement (audited above a $3,000,000 limit) less than 12 months old, or a contractor surety bond equal to at least 50% of the monetary limit requested. |
| Texas | Electrical contractors must carry liability insurance of at least $300,000 per occurrence, $600,000 aggregate, and $300,000 aggregate for products and completed operations. You must also show workers comp, a self-insurance certificate, or a statement that you elected not to carry it. | Not set in the license rules we checked |
| Utah | General liability of at least $1,000,000 per incident and $2,000,000 total, with DOPL as certificate holder. If you have employees you need workers comp; if not, a workers comp coverage waiver from the Utah Labor Commission. | Not set in the license rules we checked |
| Virginia | Not set in the license rules we checked | Class A firms need a $45,000 net worth and Class B firms $15,000, or either can post a $50,000 surety bond instead. |
| Washington | L&I encourages but does not require general liability insurance for electrical contractors. You need a workers' compensation account if the business hires employees. | A $4,000 electrical contractor surety bond, or an assignment of savings account. |
| West Virginia | For the contractor license, proof of workers' compensation and unemployment coverage for all employees working in West Virginia. | A wage bond status affidavit is required with the contractor license application. |
States not listed either leave insurance to cities and counties or set no rule in the license. Your city, your customers and your contracts can still ask for more.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for electricians is $140 a month, priced per $100 of payroll. A bond protects the state or the customer, not you; Insureon puts its yearly cost at a share of the bond amount:
| Bond amount | Estimated yearly cost |
|---|---|
| $5,000 | $25 to $500 |
| $10,000 | $50 to $1,000 |
| $50,000 | $250 to $5,000 |
Certificates of insurance
General contractors and commercial clients nearly always ask for a certificate, often naming them as additional insured. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for electricians, checked October 9, 2026
- Insureon: General liability insurance cost, checked October 9, 2026
- Insureon: Workers' compensation insurance cost, checked October 9, 2026
- Insureon: Surety bond cost, checked October 9, 2026
- SBA: Get business insurance, checked October 9, 2026
- Koira: Electrical license requirements by state (each row lists its board sources), checked October 9, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.