Starting a small business as an electrical contractor is a great way for an entrepreneur to take on the projects that fit best with their skills and financial goals. If you have been working for an employer up to this point, you’ll need to learn the business side of your trade to get started. At Smyrl Insurance, we regularly meet with new businesses in the trades. We look forward to these opportunities to educate, nurture, and empower new business owners through insurance to get the right protections in place for their investment.
Electrical contractors understand the inherent risks of their trade. Therefore, they are typically very conscious of their need for the right business insurance. When they give us a call, they usually already have a good idea of how they’d like to operate the business. This allows us to dig in with the right mix of questions to learn more about their insurance needs.
The Initial Insurance Interview for Electricians
The initial interview is crucial to determining the right insurance for an electrician who is getting started in business. Any provider or agency that quotes a policy without getting a clear picture of how the business operates is not offering adequate service. We have to know about the business in order to offer the right protections.
We work with electricians fairly often, so we start out with great questions. We’ll ask if you plan to work residentially, commercially, or both. We’ll also find out if you plan to be a contractor for larger construction firms, or if you prefer smaller, independent jobs. Will you have employees and vehicles?
What type of service will be your main focus? For example, some electrical contractors prefer service work. They fix existing systems, perform upgrades, and offer maintenance packages. Others lean more toward the new installation side of business. They like installing new fixtures and systems, or running wiring for new construction. Of course, a lot of contractors like to do a little bit of everything.
We also need to know what kind of customers you expect to have. If you’re working with homeowners, what kind of projects do you expect and in what types of neighborhoods? If you’re planning to be in the construction realm, will you focus on commercial or residential, and how will you do invoicing? Or, is it your plan to build a book of commercial businesses for general maintenance?
One important variable that you might not know for sure yet is what you expect in gross revenues for the year. Start-ups may have to do some guesswork on this, but you should have an idea based on prior employment and committed first customers. If you will start out with a team, we need to know about your employment structure as well.
This interview process is detailed, but the details matter when we’re putting together your insurance plan. The most effective insurance policy is the one that covers your actual business needs.
Insurance Education for Empowered Decision Making
Once we get through the interview process to gain an understanding of your business operations, we’ll switch gears to educate you on the insurance products that we feel are a good fit for your needs. To make informed decisions, you need to know what each element of a policy covers and how it works.
This phase helps start up electrical contractors truly think like a business owner. We will talk about the insurance requirements that many of your customers will have before they can allow you onto their property.
For example:
If you are an electrician on a large construction project, your general contractor might require certain insurance limits.
If you’re performing maintenance for a condo owner, their building manager could require a certificate of insurance and specific coverage.
If you’re rewiring a home’s electrical system to upgrade it for smart features, new lighting, or just to bring it up to date, the homeowner should want to see your proof of insurance.
If you will have property in your possession to install for a client, they might ask who is responsible for that property in transition.
If you plan to work in certain townships, municipalities, the city of Philadelphia, or across the river in New Jersey, you need to be insured according to local and state laws.
We will also educate you on the insurance you need for your own protection. What is the value of all the equipment inside your truck or your workshop? This is covered under a section called “Inland Marine” in your policy. If you just see that heading while you are reading the quote, you might be tempted to skip right over it. How could that phrase possibly apply to electrical work, right? As odd as it sounds, Inland Marine is a really important aspect of insurance for any contractor with equipment!
We take the time to explain this coverage so that you know what it means and why it is in your policy. Inland Marine coverage can also protect you when you have the customer’s property prior to installation. If your truck gets vandalized, or if a fixture gets damaged before the job is complete, your “installation floater” covers the cost of replacement.
As we work through the explanation of the business insurance policy that will work for an electrical contractor, you’ll have opportunities to ask questions, consider scenarios that might affect your business, and compare various options. Our goal is that the policy you ultimately purchase is one that helps you start your business with confidence.
The Proper Insurance Helps New Businesses Become Long-time Businesses
Your insurance needs will change over time. Many electricians start out on their own, but quickly gain enough work to start hiring employees. We are ready to help you through that process as well. Workers compensation insurance is something that you, as a business owner, should understand well. We’ll explain how it works, what it covers, and what you need to do to consistently protect your business and employees. We can also assist with commercial vehicle insurance as your brand grows, and property insurance once you move into your own office.
Smyrl Insurance has been helping small businesses get off to a great start with effective insurance policies for over 65 years. We’re proud to continue serving once small businesses into their double digit years and steady growth. Our commitment to educating, nurturing, and empowering business owners through insurance has allowed us to build great relationships with reputable businesses throughout Southeastern Pennsylvania. If you are starting an electrical contracting business, or any trade business, in the coming year, please contact us to learn more about the business insurance you’ll need. We serve clients with general liability, property, commercial vehicle, workers compensation, and other business insurance needs in Hatfield, Lansdale, Souderton, Harleysville, and throughout the region in Montgomery County and Bucks County, Pennsylvania.
