Understanding Workers' Comp Insurance for Electricians
Why Electricians Need Workers' Comp
Being an electrician isn’t just a job—it’s a high-voltage profession full of risks. Whether it’s climbing ladders, navigating live wires, or squeezing into tight crawlspaces, electricians face physical hazards every day. That’s where Workers’ Compensation Insurance comes in. It’s designed to protect you and your employees when injuries strike. And let’s face it: in this line of work, it’s not if, it’s when.
What Does Workers' Comp Cover?
If someone on your team gets hurt while installing a panel or rewiring a building, Workers’ Comp kicks in to cover:
- Medical expenses
- Lost wages during recovery
- Rehabilitation costs
- Disability benefits
- Legal fees if your employee sues
It’s more than just an insurance policy—it’s peace of mind.
Real-World Scenarios
Imagine one of your journeymen trips over tools on-site and breaks a wrist. Not only is he out of work for 6 weeks, but he racks up medical bills and needs therapy. Without Workers' Comp Insurance, that financial burden could fall directly on your business.
With coverage, he’s taken care of—and so is your business.
The Legal Side of Things
Most states require electricians to carry Workers’ Compensation Insurance if they employ even one person. Skipping coverage? That could mean heavy fines, lawsuits, or being shut down. Even if you’re a solo electrical contractor, some clients may require proof of insurance before awarding you a contract.
At Mike Lively Agency LLC, we help you stay compliant while protecting your team and your reputation.
Who Pays What? The Costs Breakdown
You might be wondering: how much does Workers’ Comp cost for electricians? The answer depends on your payroll, your claims history, and your location. Here’s a rough breakdown:
| Business Size | Average Payroll | Estimated Annual Premium |
|---|---|---|
| 1-2 Electricians | $100,000 | $2,000 - $4,500 |
| 3-5 Electricians | $250,000 | $6,000 - $11,000 |
| 6+ Electricians | $500,000+ | $12,000 - $25,000+ |
These are ballpark numbers, but they can give you a sense of what to expect. Premiums can be lowered with safety training, return-to-work programs, and a strong claims history.
Common Misconceptions
"My team is small—I don’t need coverage."
Actually, size doesn’t matter. Even one injury can lead to thousands in costs.
"I subcontract everything."
If your subcontractors don’t have their own Workers’ Comp, liability could still land in your lap.
"It’s too expensive."
Compared to the cost of lawsuits, lost time, and medical bills, Workers’ Comp is a smart investment.
Benefits Beyond the Basics
When you protect your crew with Workers' Comp Insurance, you’re not just checking off a legal box—you’re building a stronger, more loyal team. Employees feel safer knowing they’re protected. Clients feel confident working with a responsible, insured contractor.
Plus, you can often bundle Workers’ Comp with other business insurance policies like General Liability or Inland Marine to save money and simplify coverage.
Why Choose Mike Lively Agency LLC?
At Mike Lively Agency LLC, we specialize in insurance for trade professionals, including electricians. Our team understands the unique risks you face on the job. Whether you’re working residential, commercial, or industrial contracts, we’ll help you build a custom policy that fits your business—and your budget.
We’re local, experienced, and committed to keeping your crew protected so you can focus on getting the job done right.
Ready to safeguard your business and your team?
Contact us today at 432-300-6219 to talk through your needs, or drop us a line online.