Why Professional Liability Coverage for Contractors Is Important

Insuring against professional liability for contractors can be complicated for self-employed individuals. For example, independent electricians should seek customizable indemnity because they usually handle high-risk duties such as installing, repairing, and troubleshooting power systems. They need a policy with essential protection if something goes wrong such as a fire or outage caused by faulty wiring.

Why Should Electricians Carry Business Insurance?

As a contractor in the electric power industry, you’re responsible for all aspects of your services that require you to manage assignments in hazardous environments. You pay the majority of your expenses out of your pocket, and you’re accountable for the outcome of your work. If maintenance results in financial harm or you face incomplete or unsatisfactory labor accusations, you could end up battling a lawsuit.

What Are the Types of Liability Coverage?

Professional liability coverage for contractors is important should you make a mistake that could cause issues and jeopardize your business. This type of insurance accommodates specialists who provide electrical services to owners.

Two main forms of coverage are available:

  • Incompetence – Protects against the recovery of losses due to misrepresentation.
  • Negligence – Protects against claims of damage and lack of precaution.

Unfortunately, errors can happen on a job, or you can cross paths with a spiteful client determined to find any reason to undermine your skills and expertise. Knowing the principles of professional liability for contractors can save your business the burden of vulnerability without protection.

Professional Liability Insurance for Almost Any Business

Errors and omissions policies are a backbone form of coverage for many professionals, especially those in high trust positions like doctors, lawyers, and financial professionals. They’re hardly the only ones who could benefit from professional liability insurance, though. Most of the time, if a professional is acting as a freelancer or one-person business, some form of E&O coverage for their professional liabilities will wind up being a good idea. From IT contractors to auto repair professionals, each skilled career has its own unique risks associated with professional misjudgment or accidental oversight, and miscellaneous errors and omissions insurance programs exist to provide individualized coverage for those businesses.

Assessing Professional Risks for Yourself

Most of the time, if you aren’t in practice on your own or working freelance, your employer assumes the risk for your professional decisions on behalf of a company. There are some cases where this isn’t true, but largely it is, and as a result many people have very little experience with professional liability coverage. As the workforce becomes more and more dependent with fewer and fewer industries relying on wage labor, that landscape is changing, and diverse E&O programs have become very high-demand. If your current coverage doesn’t include professional liability, now is the time for an insurance review with an eye toward adding the policy. Luckily, there are providers with over a quarter of a century of experience with miscellaneous E&O coverage, so it won’t be hard to find a provider.