Electrical Contractor Insurance


elecEvery state has different requirements when it comes to applying for electrical contractor insurance coverage, but electrical contractors must carry insurance. Insurance for electricians protects the contractor and consumer in both residential and commercial environments in case anything should go wrong. Appropriate liability insurance is a must in order to cover any losses. Read on to find out more about electrical contractor insurance.

Liability Insurance for Electricians

There are two types of insurance coverage to protect the electrical contractor and the client hiring their electrical services. They include:

Electrical contractor insurance: Required by all states, the amount of coverage depends on the state you are working in. In the state of Texas, all electrical contractors are required to maintain at least the minimum general liability coverage at all times. This includes:

  • $300,000 per occurrence (property damage and bodily injury combined)
  • $600,000 aggregate (total amount the policy will pay for property damage and bodily injury)
  • $300,000 aggregate for products and completed operations

Bond options: Although bond options vary by state, there are three basic bond policies you should carry.

  • Performance bond: Required of the contractor, this bond assures the contractor will honor their contract.
  • Bid bond: Required for submitting contract bids, this bond assures the contractor will honor their originally proposed bid.
  • Payment bond: Holds the contractor responsible for any sub-contractors, materials, and any other job-related costs required while performing the contracted job.


Without the proper proof of insurance and required bonds a license application will not even be considered. Jeff Van Matre Insurance Agency can help tailor your insurance policies to your business needs and Texas state requirements, as well as supply you with all the proper certification and documentation required to prove you have appropriate coverage to obtain a license.


With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets. To learn more, or to get a free quotecall our Carrollton office today at 972-492-8500.