Electricity contractors play an important role in ensuring that the connections between electricity stations and businesses or homes are working efficiently. The work involves working with high power voltages which can cause injuries to not only employees but also customers as well as damage or fires to the customer’s property. Having electrician Insurance is the best way of cautioning your business in case it gets sued or is held responsible for such injury or damage. Even if your company is incorporated, the corporate veil can be pierced exposing your personal property.
Indeed, many companies have collapsed under such circumstances. Electricity insurance protects you regardless of the type of legal entity you choose for your business. If you do not have electricity insurance for your business, this article will help you understand why you need it.
Reasons why you need electricity insurance for your business
- Lose clients
When your business tenders for a specific electricity project, you have to provide the client with a complete business profile for your company. Many clients shun away from electrical contractors who do not have valid electricity insurance. They get afraid of the loses they might incur in case something goes wrong and causes fire or damage to their property. Also, many clients fear the legal suits that might occur in case your employees get injured while working on their property. When you do not have insurance, you lose many clients to contractors who have the necessary electricity insurance.
- Damage to the client’s property
Sometimes things can go wrong even where you exercise maximum caution. An error or omission on the part of your employees could cause damage to the client’s property. Electricity connections can cause a fire to the client’s property. If the client’s property gets damaged as a result of your work, the client can sue you for compensation. Such an incident can cause a lot of strain not only to your business but even endanger your personal property. Such actions have destroyed many companies. Hence you need to have electrician insurance to safeguard you from such situations.
- Injury to your employees or the client
Every job has some degree of risks. However, electricity jobs have a high chance of injury to employees as well as the employer. The nature of the job involves working with high voltages. Also, an employee could fall from high heights occasioning severe injuries. Paying for damages can hurt your business. You need to have a business electricity insurance to guard you against such risks.
- Business interruption coverage
Sometimes jobs might end up with disagreements leading to legal battles. Your payment for the job done can delay for an extended period hurting your business. Having a business insurance can ensure that your operations are not interrupted for lack of funds. Hence business operations coverage can be helpful.
An electricity insurance is an investment for your business. First you will get many jobs because many clients feel that you are not a risk to their investment. It will also caution you in cases where you are held responsible for damages or fires to the client’s property or injury to your employees and the employer.