Electricians Insurance Requirements in Michigan

For most commercial property management work, require a minimum of $1M per occurrence and $2M aggregate on the electrician's general liability policy. For major electrical projects like full building rewires or high-voltage panel upgrades, consider requiring $2M/$4M limits. Always ensure the policy includes completed operations coverage, which protects against claims from defective work discovered after the project is done.

Request a current Certificate of Insurance (COI) showing workers' compensation coverage with statutory limits and employers' liability of at least $500K. Verify the policy is active by checking the effective and expiration dates. In monopolistic states like Ohio, Washington, and Wyoming, coverage must come from the state fund rather than a private carrier.

Completed operations coverage is a component of the general liability policy that covers claims arising from work after it has been finished. For electrical work, this is critical because defects like improper connections or overloaded circuits may not cause problems until weeks or months after the job is done. Without completed operations coverage, a fire caused by faulty wiring six months later would not be covered under the electrician's policy.

An umbrella policy is recommended for electrical projects exceeding $250K in contract value or any work performed in occupied multi-tenant buildings. Umbrella policies typically provide $1M–$5M in additional coverage above the underlying GL, auto, and employers' liability limits. For high-rise or large commercial properties, a $2M umbrella minimum is becoming standard practice.

Using an unlicensed electrician exposes you to significant liability. Many insurance policies contain exclusions for work performed by unlicensed contractors, meaning damage claims may be denied. Additionally, code enforcement agencies can issue fines, require work to be torn out and redone by a licensed contractor, and the property owner may be held liable for any resulting injuries or property damage.

Michigan Electrical Administrative Act requires licensing. Must hold a master electrician license to pull permits. Local inspectors enforce compliance. Detroit has additional licensing requirements.

In Michigan, you as the property manager could be held liable for injuries or damages caused by an uninsured electricians on your property. Michigan courts have consistently ruled that property owners have a duty to verify contractor insurance before allowing work to begin.