What type of insurance must electrical contractors maintain in Alabama?

Electrical contractors in Alabama are required to maintain liability insurance, which is essential for protecting against claims related to damages or injuries that may occur as a result of their work. Liability insurance covers legal fees, medical expenses, and any settlements or judgments that may arise from such incidents. This form of insurance is crucial for contractors since it mitigates financial risks associated with accidents or negligent acts that could occur during electrical installations or repairs.

While workers' compensation insurance is also important in protecting employees and meeting legal requirements, the specific focus of the question is on what insurance is necessary for contractors to protect their business and themselves against third-party claims. Health insurance and property insurance, while important for broader risk management and employee welfare, do not specifically address the legal and financial risks tied directly to the services provided by electrical contractors in Alabama.