Starting an electrical company

[anonymousparky]

I have just passed my administrators test in WA. I am in the process of filling out paperwork for my contractor's license. I am planning on running by myself, for the foreseeable future, so I don't plan on bidding massive projects. Washington does not require insurance, only a $4000 bond. I am curious as to what a good amount of coverage would be for someone in my situation. I know some companies require so much coverage for certain projects, but I am planning on getting some general liability, business property and probably professional liability to cover myself. Just unsure of numbers that make sense.

 

[Seven-Delta-FortyOne]

Inland marine (a policy that covers your tools) will be expensive.

The basic policy everyone get is a GL (General Liability). The standard is $1mm/2mm, $1mm per occurrence/2mm aggregate.

Thats covers nearly all you’ll be doing as a one-man-show. Many municipalities around here require 2/4 in order to either bid PW, which is going to require a variety of bonds as well, or to pull an Encroachment Permit, along with a beefed up auto policy.

But if you’re not doing that kind of work, I’d start with a basic 1/2 GL policy. I just got quoted for one for $1,500/year. But that only covers the electrical side. Since I’m a GC, I pay about $3,500/year.

 

[zbang]

You might want Errors and Omissions coverage if anything you do could be considered design work or where the client is relying on your professional judgement to do or not do something. (E&O is usually for licensed professionals, like Prof. Engineers or CPAs, but it could certainly apply to licensed electricians who advise their clients.)

Talk to your insurance agent about whether they think it's necessary and the cost.

 

[letgomywago]

Look into Next insurance 2 mil policy with E and O for a small shop was 65 bucks a month last time I renewed. Commercialv ehicle insurance is important even if you're using your personal truck