Why do light installation contractors need insurance?
Working with electricity and on ladders is always risky. Business insurance helps pay for medical bills if a contractor is injured. It also covers accidental damage to a customer's home, vehicle collisions, data breaches, and theft.
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What types of light installation insurance do I need?
These insurance policies cover the most common risks of lighting installation.
General liability insurance
A general liability policy covers common third-party risks, such as accidental damage to a ceiling while installing a light. It may be required for a commercial lease, loan, or contract.
- Client bodily injuries
- Accidental damage to client property
- Products-completed operations coverage
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for lighting installers to buy general liability coverage and commercial property insurance together.
- Customer injuries
- Business property damage
- Business interruption coverage
Workers’ compensation insurance
Most states require workers' comp for lighting installation companies that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Workplace injury lawsuits
Commercial auto insurance
This policy covers financial losses in an accident involving a lighting contractor's van or other vehicle. Most states require it for business-owned vehicles.
- Injuries caused by your vehicle
- Property damage caused by your vehicle
- Vehicle vandalism and theft
Tools and equipment insurance
This policy covers a lighting installer's voltage testers, wire strippers, drills, and other tools and equipment. It's a type of inland marine insurance that protects mobile property.
- Equipment less than five years old
- Items that travel to job sites
- Portable tools
Cyber insurance
Cyber insurance helps cover the cost of a data breach or cyberattack at your lighting installation business. It's sometimes called cyber liability insurance or cybersecurity insurance.
- Data breach notification costs
- Fraud monitoring services
- Cyber incident investigations
How much does lighting installation insurance cost?
A small lighting installation business with a few workers will pay less for insurance than a larger company.
Factors that affect installation contractor insurance costs include:
- Specialty, such as commercial landscaping or holiday light installation
- Business property, tools, and equipment
- Annual business revenue
- Types of insurance purchased
- Policy limits and deductibles
- Endorsements and exclusions
How do I get light installation insurance?
It's easy to get electrician and light installer insurance if you have your business information on hand. Our application will ask for basic facts about your company, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Fill out our free online application.
- Compare insurance quotes and choose a policy.
- Pay for the policy and download your certificate.
Insureon's licensed agents work with top-rated U.S. insurance companies to find affordable coverage that fits the risks of installing lighting, whether you're a contractor or an employer.
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FAQs about lighting installation insurance
Review answers to common questions about lighting installation insurance.
Do you need a license to be a lighting installation contractor?
While there is no specific license for installing lights, you may need an electrician's license or a general contractor's license to do certain types of work. This depends entirely on the laws in your state.
For example, in California you need a contractor's license to take on projects worth more than $1,000, or projects that require permits or additional employees. In other states, you may need a license to do any amount of electrical work.
Some states, such as New York, don't require electricians to be licensed. Even then, New York City and other municipalities in the state may still require a license.
Each state has its own licensing requirements as well. You will probably need to take an exam, have a certain amount of experience, and carry the right insurance coverage and bonds.
In addition to the above, you'll also need to obtain a business license and comply with commercial zoning laws and regulations.
Should I get seasonal insurance for holiday or Christmas light installation?
For those who install holiday lights, seasonal insurance might seem like an ideal way to save money and get flexible coverage when you need it. However, there are several reasons why you should consider continuous coverage instead:
- Your premiums might increase. Buying and canceling policies is a red flag for insurers. They might charge more when you restart coverage for the next holiday season—or even deny your company coverage, which could leave you scrambling to find coverage before Christmas or another holiday.
- Some policies only work when kept active. With claims-made policies, such as professional liability insurance, you're not covered unless the policy is active both at the time of the incident and when you file the claim.
- You might need insurance for a license. Canceling your policy after a holiday could cause you to lose your license, in locations where insurance is a requirement. After that, it might be difficult or even impossible to get your license back.
Without insurance, it's risky to accept a contract. Some contracts may even require insurance, such as a retailer's contract for an annual Halloween display. It also opens you to risk in other areas:
- Auto accidents. The laws in almost every state require commercial auto insurance for vehicles owned by a business. Personal, leased, and rented vehicles should be covered by hired and non-owned auto insurance (HNOA), as your personal auto insurance won't cover any work-related driving beyond a commute.
- Job injuries. If you're injured while installing holiday lights, you can't rely on personal health insurance to foot the bill. Workers' compensation insurance covers work-related injuries, and it's required by law in most states when you have employees.
- Legal costs and other losses. Similarly, homeowner's insurance doesn't cover incidents related to work, such as customer injuries or the theft of commercial outdoor lights. For protection, look to general liability insurance and commercial property insurance. Owners of low-risk businesses can often bundle these policies at a discount in a business owner's policy.
What other types of insurance are recommended for light installation professionals?
Installation professions often depend on the following types of coverage, in addition to those mentioned above:
- Professional liability insurance: This policy provides financial protection against accusations of professional negligence, such as faulty wiring that causes a fire. It's also called errors and omissions insurance (E&O).
- Commercial umbrella insurance: Umbrella insurance boosts the coverage of other policies once they reach their limit, such as general liability insurance, commercial auto insurance, and employer's liability insurance.
- Installation floater insurance: If your commercial lights or other products are stolen or damaged at a job site, this property coverage will help pay for your losses. It covers materials in transit and stored off-site, which is important since commercial property insurance only covers items at a fixed business address.