I Am A Self Employed Electrician – Do I Need Liability Insurance?

In short, the answer is yes, you absolutely do need liability insurance as a self employed electrician or small business owner. The only way to protect yourself, your business, and your loved ones from financial ruin in the case of a lawsuit or accident on the job is by ensuring you have liability insurance to cover the likely expenses. There are a number of online resources that offer a legal insurance comparison (Haftpflichtversicherung) service, making it easy to compare and contrast different deals before you sign on the dotted line.

Accidents Happen

No matter how much care you take with each job you work on, mistakes and accidents will sometimes happen. If there is a short in one of the home’s electrical lines that causes a home fire, you could be held responsible for hundreds or thousands of dollars worth of repairs on the residence. Contractor’s liability insurance can help pay for these repairs without bankrupting your family and business.

As an electrician, you will be constantly on the road from one job to the next, and a simple accident while driving your construction business vehicle can lead to claims being placed on your company above and beyond the typical car insurance coverage. A good liability insurance policy for self employed contractors will include coverage for property damage, medical bills, and legal protection in case a lawsuit arises.

We Live in a Litigious Society

The truth is that we live in a world where people sue even when you have not done anything wrong. Independent contractors are open to large liability lawsuits because their work brings them into people’s homes and offices, and often includes working on mechanical systems that can be heavy and dangerous.

But Doesn’t Being Incorporated Protect Me

Many independent contractors and small business owners think that the incorporation process completely separates their business from their personal assets. Unfortunately, a prosecuting attorney’s ability to “pierce the corporate veil” and get at your assets is not very difficult. This is especially true as a solo employee small business owner, as the details of maintaining a complete separation between the company and personal property is very difficult. Liability insurance makes sure that you are covered no matter what type of legal entity you have chosen for your business.

Effects of a Liability Lawsuit on Uninsured

If an accident does occur on the jobsite and you and your business is taken to court, your company and personal assets could be at risk. Without liability insurance, you will have significant out of pocket expenses even if you are not found liable due to the high cost of hiring a law firm to defend you. If you are found to be at fault, your work vehicle, tools, office, and office equipment can be sold to pay whatever amount the judge awards, and if that does not cover the total fee, the offended party will try to go after your personal assets, such as your home and life savings.

Do not put your business and family at risk by going without insurance. The minor cost of contractor’s liability insurance can protect you and the people you care about the most.