Many electrical contractors grapple with the issue of whether to purchase electricity insurance or not. Some contractors view the insurance premiums as an expense that can be avoided. However, most of them have suffered significant setbacks in their business as a result of suits filed against them for injuries to employees and damage to property. Indeed, some companies have gone down due to such occurrences. In this article, we shall endeavor to answer the question as to whether electricity contractors need electrician insurance.
Injuries to customers or employees
Electricity contractors exercise high standards of due care owing to the nature of their operations. Let’s face it, dealing with electricity means handling high voltages which can be disastrous to the employees, the employer and other occupants of premises where the work is performed. The job also involves climbing high heights that could be fatal should an employee fall. Then there’s the usual slips and trips that are common in any work environment. As a contractor, you cannot predict what can happen in the future. Hence, you had better cover yourself against such occurrences with electricity insurance. Frivolous legal suits could bring your investment to its knees.
Fires or damage to customer property
In as much as electrical contractors take due care and endeavor at all times to attain the standard required of professionals in their trade. There may be an omission or error during their work which could lead to a fire. If the electrical contractor is held responsible for the damage to the customers’ property, the costs as compensation for the loss or injury could be too high for the contractor. Even where your company is incorporated, courts are known to pierce the legal veil, and so you might lose not only your business but also your personal property. Hence you had better purchase electricity insurance and insulate yourself and your business against such occurrences.
Misunderstanding instructions from the customer
Another issue that’s common is where an instructor misunderstands the instructions of the customer. The customer can refuse to pay for your service which can result in huge losses as regards labor and the materials and parts you may have used on the project. Some customers might even commence proceedings against you for compensation of the business they might have lost because of your not providing the exact service they required from you.
Stolen or lost materials and tools
When a contractor is performing on a project, they purchase expensive materials to be used on the project. If the materials are stolen or get lost, the consequences can be dire. The loss can be huge and also the contractor may be unable to continue with the project which could result in a breach of contract with devastating consequences. Also, during a massive project, the electrical contractor engages expensive tools and equipment. If the tools or the equipment are stolen, the contractor can suffer huge losses that can affect his performance not only on the subject project but others as well. Failure to deliver timely can also result in legal suits with a disastrous ending.
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