Solar panel installation is a growing business. More and more people are choosing to go green and installing solar panels in their homes and businesses. However, installing solar panels comes with risks and potential liabilities. That’s why it’s important for solar panel installers to have insurance.
Who Needs Solar Panel Installers Insurance?
Solar panel installers face a variety of risks and exposures that could result in financial loss. Any business that installs solar panels should have insurance coverage to protect against these risks. This includes:
- Solar panel installation businesses
- Independent contractors who install solar panels
- Electricians who install solar panels as part of their services
- Roofers who install solar panels as part of their services
Types of Insurance Needed by Solar Panel Installers
There are several types of insurance that solar panel installers should consider:
- General Liability Insurance: covers third-party injuries or property damage that occur during the installation process. For example, if a solar panel falls off a roof and damages a car, general liability insurance would cover the cost of repairing the car.
- Professional Liability Insurance: also known as errors and omissions insurance, this coverage protects against claims of negligence or mistakes made during the installation process. For example, if a solar panel installer makes an error while connecting the panels to the electrical system, professional liability insurance would cover any resulting damage.
- Workers’ Compensation Insurance: compensates medical expenses and lost wages if an employee is injured on the job. For example, if an installer falls off a roof while installing solar panels, workers’ compensation insurance would cover their medical expenses and lost wages.
- Commercial Auto Insurance: this insurance covers vehicles used for business purposes, such as transporting equipment or traveling to job sites.
How Much Does Solar Panel Installers Insurance Cost?
The cost of insurance for solar panel installers varies depending on the type of coverage needed, the size of the business, and other factors. On average, solar panel installers can expect to pay between $1,500 and $5,000 a year for insurance coverage.
Solar Panel Installers Risks and Exposures
Solar panel installers face a variety of risks and exposures that could result in financial loss:
- Property Damage: During the installation process, solar panels and other equipment could damage the property of the homeowner or business owner.
- Electrical Shock: Solar panel installers are often working with electrical systems, which puts them at risk for electrical shock.
- Falls: Installing solar panels often involves working on roofs or high places, which puts workers at risk for falls.
- Professional Errors: Mistakes made during the installation process could result in damage to the solar panels or electrical system, which could result in expensive repairs.
Commercial Insurance and Business Industry Classification
- SIC CODE: 1711 Plumbing, Heating and Air Conditioning
- NAICS CODE: 238220 Plumbing, Heating, and Air-Conditioning Contractors
- Suggested Workers Compensation Code(s): 5183 Plumbing NOC & Drivers
Solar Panel Installers Insurance – The Bottom Line
Solar panel installers face a variety of risks and exposures that could result in financial loss. That’s why it’s important for solar panel installation businesses and contractors to have insurance coverage. General liability, professional liability, workers’ compensation, and commercial auto insurance are all essential types of coverage for solar panel installers. Costs vary depending on the size of the business and other factors, but it’s important to remember that the cost of insurance is much less than the cost of a lawsuit or other financial loss.