Why Electricians Lose Jobs Over Insurance (And How to Stop It from Happening to You)

You got your license. You’ve got your tools. Maybe you even landed a job. But then the general contractor (GC) asks for your insurance certificate—and boom—the whole deal falls apart.

Why does this happen?

As someone who works with Maryland electricians all across the state, I can tell you: It’s almost always one of four avoidable insurance mistakes.

So in this post, I’m going to walk you through what those mistakes are, how they happen, and how to fix them before they cost you work, money, and credibility.

Mistake #1: Not Having High Enough Insurance Limits to Match the Contract

This is probably the most common way the job falls apart.

Let’s say you’ve got $1 million in general liability coverage. That’s the standard minimum—and it’s probably what your agent or the state recommended. But then the GC, the city, or the property management company sends over a contract that says they need $3 million, or even $5 million in coverage.

Now you’ve got a problem.

You’re stuck trying to add an umbrella policy last minute, and it turns out:

• The coverage costs more than your profit margin on the job

• The carrier can’t offer it fast enough to meet your deadline

• Or the insurance company won’t even issue the umbrella because of how they underwrite electrical work

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Either way, the deal is dead. And what’s worse—you signed the contract before checking if your policy matched the requirements.

Here’s what I tell every electrician I work with:👉 Never sign a contract without knowing what limits it requires—and whether your policy can meet them.

Even better, send me the contract. I’ll break it down for you so you don’t get stuck in this exact spot.

Mistake #2: Missing the Right Types of Coverage

Let’s say you do have the limits. You’ve got General Liability, maybe Commercial Auto, maybe even Workers' Comp and an Umbrella.

You’re covered, right?

Not always.

Sometimes a contract will require you to carry coverages that aren’t on your radar—like:

• Pollution liability (yes, even for electricians)

• Professional liability

• Cyber liability

• Or in some rare cases—sexual misconduct liability

I’ve seen this a few times in D.C., especially on government jobs or projects inside city-owned buildings. If the city requires certain insurance and you can’t provide it quickly enough—or your carrier flat-out doesn’t offer it—you lose the job.

This is where electricians get blindsided. They’re ready to work, but the deal gets held up over an obscure insurance requirement they didn’t even know existed.

Bottom line?👉 Ask about insurance requirements up front. Then make sure your policy lines up with the contract, not just your state license.

Mistake #3: Signing Up for Work Your Insurance Company Won’t Cover

This one surprises a lot of people.

You sign a deal to do electrical work in a hospital, a government data center, or on a rooftop solar project.

The job looks good. The money’s good. You’re excited. But then you send the info to your insurance agent, and the carrier says:

“Sorry, we don’t cover that kind of work.”

Now you’re scrambling. You’ve got to find a new carrier, apply for a new policy, get it underwritten, and do it all fast enough to keep the job.

This kind of fire drill costs you time, money, and leverage.

Why? Because you built your insurance program for a different type of work, and you didn’t check if this new job fit inside those lines.

Here’s the fix:👉 If you’re taking on a job that’s different from what you usually do—talk to your insurance agent first. Let them review the scope of work. If your carrier can’t support it, at least you’ve got time to find one that will.

Mistake #4: Your Insurance Carrier Won’t Agree to the Contract Language

This is a sneaky one—and it usually shows up after you’ve already sent in your COI.

The GC or city reviews the certificate and comes back with a request:

• “We need to be listed as Additional Insured on a primary and non-contributory basis”

• “You must waive subrogation in any and all scenarios”

• “We require specific endorsement forms or broad form coverage”

Now the carrier gets involved and says:

“We’ll offer some of that, but we’re not signing off on the whole thing.”

And guess what? That’s enough to kill the deal.

This happens most often with public projects or GCs that use heavy-handed risk transfer language. Sometimes their lawyers write contracts that push everything on to the subcontractor—even things the insurance market won’t cover.

Here’s what to do:👉 Before you sign a contract or submit a COI, send the insurance language to your agent. Have them review it with your carrier and confirm whether they can agree to it. Don’t assume they’ll comply after the fact.

The Big Picture: Don’t Let Insurance Be the Reason You Lose the Job

Look, I’m not an electrician. And you’re probably not an insurance expert. But that’s exactly why this stuff slips through the cracks.

The electricians I work with are sharp. They’re great at their craft. But insurance is usually the last thing they think about until it becomes the first problem that blocks the job.

My job is to help you look around corners—so you don’t get blindsided by a missing policy, low limits, or restrictive contract language.

Because once you’ve:

• Done the estimating

• Hired labor

• Ordered supplies

• Blocked off your calendar

…and then get stopped because of a COI?

That hurts.

How to Make Sure You’re Job-Site Ready

If you want to avoid these four mistakes, here’s what you should do before you sign that next job:

✅ Get the contract or insurance requirements in writing

✅ Send them to your insurance agent

✅ Ask if your current policy matches the job requirements

✅ Plan ahead—especially for jobs with tight deadlines or complex scopes

If you don’t have an insurance broker who does this kind of review with you—reach out. I do it every day for Maryland electricians.

Final Thoughts

The last thing you want is to lose a $25,000 job over a $500 insurance mistake.

It’s avoidable. You just have to be proactive.

Review the contract. Double-check your coverage. And work with someone who knows how to get you on the job quickly—without putting you at risk.

If this post helped you, shoot me a message. If you’re looking for affordable electrician insurance in Maryland, that gets you job-site ready fast—I’ve got your back.

Let’s build something great.

📞 Need help reviewing your insurance? Reach out at https://www.insuranceforentrepreneurs.net/contact-8 or drop your question in the comments.

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👷‍♂️ You do the work. I’ll help you stay covered.