Bureau of Labor Statistics According to estimates, there were approximately 650,500 employed electricians in the US in May 2021. The Bureau also projects this number. Employment opportunities for electricians will be around 85,000 per year As the market grows and people change their occupations or retire.
This number does not include self-employed workers, and About 8% of electricians are self-employed. At the same time, there is 223,776 electrician occupations in the US in 2022.
Not all electricians are licensed to work on their own and without supervision. That is why there are different types of electrician licenses that indicate what type and level of services an electrician is allowed to perform.
Most states require electricians to be licensed to work, but not all. For example, there are no state requirements in Illinois, Indiana, or Kansas, but local ones may still apply, so you should make sure you’re compliant. You should also note that each state has its own requirements for different types of licenses, and you should check them before applying for yours.
In addition to the required licenses, you should also pay attention to the recommended insurance policies that protect your business, whether you are a business owner, contractor, or self-employed electrician. If you’re not sure which policy you need, you may want to work with a broker who can help you choose the right coverage for your business.
Before discussing what insurance policies electrician professionals need, let’s look at the types of electrician licenses and the general license requirements for each.
Apprentice Electrician License Requirements
If you want to become a licensed electrician, you must meet certain conditions before applying for a license. An electrician’s career journey usually begins with an apprenticeship or trainee program, or by earning a college degree that qualifies them to become an electrical engineering technologist or assistant.
Some future electricians earn an associate degree in electrical technology as their introduction to the field. It takes two years to complete and allows students to find employment after graduation. However, many people decide to continue their education and pursue an engineering degree.
However, you don’t need formal education to become an electrician. You can enter the field through an apprenticeship program.
An apprentice or trainee, depending on the official term in your state, may begin their training after graduating from high school. If your high school program offers vocational training and classroom instruction to become an electrician, it will help you obtain an apprentice license that will allow you to find an apprenticeship program.
You can apply to one of these programs without vocational training, but you’ll need to spend a little more time in the classroom with your on-the-job training. Note that you can apply for your learner’s license before you find the right apprenticeship program or after you’ve been accepted for one.
Employers sometimes sponsor apprenticeship programs because they are a good way for their journeymen and master electricians to get help and find talent early. Some organizations like the National Electrical Contractors Association (NECA) also support apprenticeships.
Apprenticeships typically last four years, and the apprentice works under the supervision of an experienced electrician. A year brings about 2,000 on-the-job training hours and 144 hours of classroom instruction.
Journeyman Electrician License Requirements
Each state has requirements that electricians must meet to apply for a journeyman license, and in some states, testing requirements vary by location. To qualify for a journey-level electrician’s license, you must have at least four years (or 8,000 hours) of experience working under the supervision of a licensed electrician and having an accompanying classroom teaching experience.
You must also pass an exam administered by your state’s licensing board or a nationally recognized organization such as the National Electrical Contractors Association (NECA), depending on your state or local requirements. Contact your local government agency to find out all the details, including eligibility, fees and testing requirements.
You should also note that you will need to renew your license, usually every year, or every two years, depending on state laws, and complete a certain number of continuing education hours.
Master Electrician License Requirements
The Master Electrician license is the highest level of electrical license available. A master electrician may supervise other electricians in addition to performing residential and commercial electrical work.
To qualify for a master electrician license, you must have at least eight years of experience working under the supervision of another master electrician. Also, in most states, you must have your journeyman electrician license for at least two years before applying for a master electrician license.
After you complete these prerequisites, you can apply for your Master Electrician license exam. Note that your experience must be documented through the prescribed verification form. As with your journey-level license, you need to renew your master electrician license when required by your state or local laws.
Contractor’s Certification Requirements
You should first note that certification does not replace a license, and you need to be licensed to be able to work as an electrician. To obtain a contractor’s certificate, you must first have a journeyman’s or master electrician’s license to be exact, and you must pass an exam administered by your state or local licensing board.
In addition to the exam, most states also require that you have specific experience working as a licensed electrician before you can apply for a contractor’s license. Generally, you will need at least four years of verified work experience to qualify for a contractor certificate.
In some states, you need to employ at least one master electrician to be certified to start your electrical contracting business. Since a contractor’s certificate is like a business license, you will also need proof of insurance to start your business. Some states require that you provide certificates of insurance within 30 days of receiving your contractor’s license and also require certain policy limits.
What insurance policies should electrician contracting businesses have?
Working in the field, often on construction sites, involves the risk of injury or damage to other people’s property, and it’s no secret that electrician contracting businesses are at a high level of risk for liability claims and lawsuits. Having the right insurance policies in place can prove crucial in protecting your company from the potentially devastating financial consequences of such claims.
Let’s look at the policies that experts recommend every electrician contractor should have.
General liability insurance
General liability insurance An insurance policy is essential for any electrician contracting business. This policy can protect against a wide range of claims, including third-party bodily injury or property damage. It also covers claims for personal injuries such as defamation and slander. To some extent, it also covers product liability claims, but you should check with a broker to make sure you have the right amount of coverage for your product liability exposure.
For example, if you or one of your employees damages the equipment of other contractors working on the same project as you, they can sue your company for damages. Your general liability policy can help cover the costs of legal defense and any settlements or judgments awarded against you.
Contractor’s E&O Insurance
No one is immune from professional mistakes, and an electrician’s professional mistake can prove particularly damaging. If you accidentally overload the circuit board or cause a failure that damages the equipment, the client can sue you for damages. A claim like this can end up with a settlement that will compensate the client for the damaged installation and replacement of the electronic goods.
If you fail to deliver what you promised by the date you signed the contract with your client, they can sue you for breach of contract. E&O, or Professional liability insuranceCan protect you against breach of contract, misrepresentation and negligence claims.
Workers compensation insurance
Electricians are another essential insurance policy for contracting businesses Workers compensation insurance. Suppose one of your employees is injured while on the job. Workers’ comp policies can help cover their medical expenses and lost wages while they are unable to work.
Most states require that businesses that employ one or more workers carry workers’ compensation insurance. With the exception of Texas. However, some companies are Exemption from workers’ compensation coverageBut it varies from state to state.
Even if state law doesn’t mandate workers comp for a business like yours in your state, it’s still a good idea to have this coverage to protect your business from the financial impact of workplace injuries.
Business Owners Policy (BOP)
a Business Owner Policy (BOP) A good solution for small companies that want to bundle general liability, property and business interruption insurance into one solution. If your business qualifies for BOP, purchasing a package policy will allow you to pay less for this coverage. If you need more coverage, you should consider purchasing a separate policy for this exposure.
Property insurance will reimburse you for damage to your property, such as the office you use to conduct your business or the warehouse where you store your equipment. Business interruption insurance covers lost income and other expenses if the business must shut down temporarily due to a covered peril.
When choosing a BOP for your business, it’s important to work with an experienced insurance agent to ensure you’re getting the coverage you need. Not all BOPs are created equal, and the right policy for your business will depend on your specific needs.
Commercial Auto Insurance
If your electrician contracting business uses vehicles to transport tools, equipment or materials, you need to make sure you have Commercial auto insurance in space. Commercial auto insurance can help protect your business from the financial consequences of accidents, vehicle damage, and injuries that occur while your employees are driving on the job.
It also covers damage caused by theft, vandalism or severe weather conditions. The policy also pays for damage to other people’s vehicles if you or your employees are responsible for the collision.
Commercial automobile insurance protects you and your assets as a company owner, but it also protects your employees and any other drivers you hire for business reasons. Commercial cars face a wider range of risks than personal cars every day, which is why it’s essential that you get comprehensive coverage for your company vehicles.
If you need more information about the policies you need to purchase for your contracting company, you can contact one of our experienced brokers. If you’re ready to get quotes online, you can get started by signing up on Embroker’s digital platform.