Electrical work is one of the most dangerous trades in the New York City construction industry—and one of the most expensive when it comes to workers’ comp insurance. With high-risk job sites, frequent inspections, and complex payroll structures, electrical contractors must be strategic when selecting and managing their coverage.

To understand how these risks compare across trades, check out our complete guide to workers’ comp insurance for NYC’s high-risk construction contractors.

If you’re specifically looking for workers’ comp insurance for electrical contractors in NYC, this post covers what you need to know to avoid overpaying or triggering audit penalties.

Whether you’re bidding on a commercial buildout in Manhattan or managing service calls across boroughs, a single coverage misstep could cost your business thousands.

Here’s how to avoid the most common (and costly) workers’ comp mistakes NYC electricians make.

Why Electrical Work Carries High Comp Costs in NYC

From arc flash injuries and ladder falls to live wiring and confined space hazards, electricians operate in high-risk environments every day. That risk only increases in NYC, where tight spaces, older infrastructure, and multi-story buildings make jobsite conditions even more challenging.

The insurance industry assigns electrical work to a higher-risk class code for good reason. Claims from this trade often result in serious injuries, extended time off work, and long-term medical care, all of which drive up base rates and premiums.

In short, the work is essential, but the risk is real and your coverage needs to reflect that.

The Most Common Coverage Mistakes Electrical Contractors Make

Too many electrical contractors unknowingly make errors that lead to inflated premiums, audit issues, or denied claims. The most common pitfalls include:

• Misclassifying Employees: Grouping all team members under one code (e.g., 5190) without breaking out clerical or low-voltage installers can increase costs unnecessarily.
• Failing to Cover Subcontractors: Relying on 1099 electricians without verifying their insurance exposes your business to liability and audit penalties.
• Using Generic Coverage: Off-the-shelf policies often ignore NYC-specific compliance issues, such as DOB requirements or scaffold law-related exposure.
• Underreporting Payroll: Trying to minimize premium costs by underreporting wages almost always backfires during audits.

Avoiding these mistakes starts with understanding how class codes and EMR (Experience Modification Rate) work and making sure your broker isn’t just quoting but advising.

Class Code 5190: What It Covers—And What It Doesn’t

In New York, Class Code 5190 is assigned to electrical contractors performing installation, repair, and maintenance of electrical systems. It covers:

• Interior and exterior wiring
• Commercial and residential installations
• Electrical panel upgrades, conduit work, and service calls

But it does not cover:

• Clerical office staff (use class code 8810)
• Sales professionals (class code 8742)
• Low-voltage cabling or telecom installation (check with your broker for correct classification)

Failing to segment your payroll properly can inflate your premiums and trigger red flags during a comp audit. Be sure you’re allocating hours accurately based on actual work performed not just job titles.

Smart Strategies to Reduce Premiums and Claims

Electrical contractors can lower their workers’ comp premiums without sacrificing protection. Here are three proven strategies:

1. Segment Payroll by Role
   Use accurate class codes to report payroll by job function. This can reduce your overall rate by ensuring only high-risk roles fall under 5190.
2. Invest in Safety Training
   Enroll your crew in OSHA 10- or 30-hour training courses. These programs reduce claim frequency, lower EMR over time, and show carriers that you prioritize jobsite safety.
3. Use a Pay-As-You-Go Model
   Align your comp payments with actual payroll, especially if your work fluctuates seasonally. This prevents overpayment and reduces audit surprises.
4. Verify Subcontractor Coverage
   Always require certificates of insurance (COIs) from subcontractors. If a 1099 worker is uninsured, your policy could be held responsible.

How Enforce Coverage Helps Electrical Contractors

Enforce Coverage works with NYC electrical contractors to customize workers’ comp strategies that match their risk profile and business structure. We help you:

• Ensure your payroll is properly classified
• Avoid audit penalties and misclassification traps
• Implement real-time pay-as-you-go billing
• Reduce EMR through proactive claims management
• Navigate NYC-specific compliance issues and jobsite exposures

Unlike generalist brokers, our team understands the complexities of electrical work in a city like New York—and we help you build a policy that protects your business without overpaying.

Ready to Get Started?

If you’re ready to take control of your costs, Enforce Coverage offers fast, accurate quotes for workers’ comp insurance for electrical contractors in NYC, tailored to your business, crew size, and jobsite risks. Get a quote now or explore contractor rates →