The utility sector is evolving – and it’s growing fast.
What was a steadily growing industry in the wake of the pandemic has now become one of the most in-demand trades in the United States. Fueled by the Bipartisan Infrastructure Act passed by the Biden administration and continued with the rise of data centers and a focus on electric power.
According to Deloitte, data centers are among the chief consumers of electricity and it’s only expected to rise in the years ahead; currently responsible for up to 8 percent of electricity consumption in the U.S., data centers may increase that load to 15 percent by 2030. At the forefront of this escalated demand are utility contractors, who are also undergoing a significant change in their own workforce and need more laborers.
With infrastructure being so important to so many things, it should come as no surprise that utility contractors need the support and protection from insurance carriers to keep them going. As the energy landscape changes and the demand for their services increases, contractors must be able to take on more projects – including bigger projects – and capitalize on this moment of opportunity.
The importance of broker support for utility trades
Utility work is vital to ensuring uptime for businesses, reliability of power grids, and so much more. And while it’s necessary work it also comes with risk; most work sites involve hazards above and below the ground, exposing workers to risks that require customized and industry-specific insurance coverages.
Broker support is a competitive advantage and particularly so in the utilities sector. Whether it’s utility line clearance, power line transmission and distribution, communication line construction and maintenance or gas and sewer, contractors need to be backed by coverages (and a broker) that understands their needs and the unique risks they face while on the job. Let’s talk more about utility contractor risks and how a better understanding of them can provide beneficial insurance guidance for brokers.
Key exposures and risks facing utility contractors
Risk takes on many forms in the utilities industry and proper coverage – written with in-depth knowledge of your clients’ specific line(s) of work – can better protect them. Even though it’s a highly-regulated sector for safety, current labor demands may see contractors from other fields join the utility industry to address demand.
A growing workforce and increased demand for utility contracting services results in an opportunity for brokers who address client needs with tailored solutions. Here are some common exposures for utility workers and how brokers can provide support.
Fleet liability
Many utility companies use company-owned vehicles to travel to and from job sites, and some vehicles may be used in the execution of the work. Auto liability coverage, customized to a client’s fleet size and the usage of their vehicles, directly addresses utility fleet insurance risks and protects clients if an accident occurs while driving or at the work site.
Workers’ compensation
If a contractor becomes sick or is injured while working, they may be entitled to workers’ compensation which covers medical costs while they’re out of work. This coverage is required in most U.S. states.
Hazardous risks on the job site
Utility line clearance workers may encounter a wide range of risks, including (but not limited to) slips and falls, electrocution, and fires. Having proper coverage for eligible risks and specific risks clients face at work will give them confidence that their broker and insurance provider have all the bases covered.
Theft and/or damage of equipment
Work-specific equipment, including tools, may become damaged or stolen while on the job site and insurance can help recoup some of the costs when this happens.
Damage to underlying utilities or existing lines
Utility contractors are often working on sites where power lines and other utility lines exist, both above and below the ground. When finding coverage for clients, it’s important to know as much as possible about potential work sites so they can be covered if damage occurs to power lines or other utilities.
UtilityPro is trusted by contractors and a valuable asset for brokers
In this era of opportunity for utility contractors, they must be both available and resilient. Downtime is not ideal, and the better covered they are, the faster your clients can get back to work and perform this critical work. Specialized insurance for utility businesses from UtilityPro is a winning combination for brokers and their clients.
UtilityPro has more than 35 years of experience providing best-in-class coverage to utility contractors and their employers, backed by industry expertise and support that’s targeted to their line of work. From claims to risk management and everything in between, UtilityPro protects contractors and allows them to continue developing our nation’s infrastructure.
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