238210 Electrical Contractors and Other Wiring Installation Contractors

237130 Power and Communication Line and Related Structures Construction

Description of Operations:

Electrical contractors are placing “lightning in a wire” in buildings every day. This force is vital to the workings of our country, but can be deadly if an error is made. The wires are both inside and outside buildings. The wire can be overhead power lines or underground cables. The electrical contractor also installs the electrical to make our machines come to life. While the exposures seem commonplace, we can never forget that one small error can prove deadly for both the worker and customers.

  • Property exposure is light unless there is considerable storage of electrical wire and cable. The wire is not combustible but the cabling produces a black oily smoke when burnt and can be difficult to extinguish once started. Proper storage with good aisle space is important for preventing fires. Property exposures at the electrical contractor’s own location usually consist of an office operation, material, equipment, and vehicle storage.

  • Inland marine exposure consists mainly of employee tools and ladders unless there is line construction. Line construction may mean cherry pickers and other such equipment. Transportation exposure will be for the material. Large cables may be awkward and require special handling and tie-down procedures. Theft may be an exposure. Copper, cable, and wiring have high resale value to other contractors and can be target items. What crime and theft controls are in place both at the contractor’s yard and at the job site? Also, there may be rented, leased or rented equipment either to the insured or from the insured.

  • Occupier’s Liability is mainly a job site exposure. Inside the buildings care must be taken to control the electrical flow as lines are installed in existing structures. Damage to customer’s property due to power surge must be controlled especially with any computer-related equipment. The installation of machinery must be done so as to prevent damage to the new machinery and any existing machinery that it is linked too. Proper overload controls must be in place. Exterior electrical contractors must notify other utilities to prevent down time to their customers and must prevent surges to their own customers. In addition, there is the concern of working overhead and protection of pedestrians. Electrical contractors normally need to be licensed for the work they do because of the high potential for injury. Are all licensing requirements met? Environmental concerns may exist if the electrical contractor is responsible for the disposal of old capacitors. The disposal process is important.

  • Completed operations can be a concern, especially in the area of faulty workmanship. Significant property and bodily injury losses can occur from improperly installed electrical work. If any security alarm or safety alarm work is done, products exposures increase. What kinds of warrants and security or safety promises and commitments are made regarding the security and safety systems being installed?

  • Automobile liability is moderate if heavy equipment and lifting devices are not transported for cable laying. If so, transport of both the equipment and cable poses additional auto exposures.

  • Workplace safety exposure includes the above ground exposures of falling from heights and the underground exposures of digging. What type of safety or restraining harness and belts are used? When laying underground lines and cables, what safety controls are in place to prevent collapse of the trench or tunnel that has been dug by the excavator? Does the operation do any of its own digging? If so, what controls are in place to make sure no existing utilities are struck?

    For cable or line lying, what shutoff and lockout procedures are in place to make sure the cable or lines are not live? What procedures are in place for installation near other “live” lines and cables? What premises controls are in place to prevent injury to passersby during the installation process? For interior contractors, what shutoff and lockout procedures are in place to make sure the wiring is not live? Does the operation involve any work with PCBs and, if so, what are the training and procedures?

Minimum recommended insurance coverage for Electrical Contractors :

Business Personal Property, Contractors’ Equipment, Goods in Transit, Installation Floater, Dishonesty, Disappearance and Destruction, General Liability, Umbrella, Automobile Liability and Physical Damage, Non-Ownership Automobile

Other Insurance coverages to consider for Electrical Contractors:

Building, Business Income with Extra Expense, Accounts Receivables, Computers, Employment Practices Liability, Environmental Impairment, Directors and Officers – for profit