Arizona Electrician Insurance: Who Pays After a Fire?

When a fire is traced to wiring you installed, the products-completed operations part of your general liability policy is usually what pays for other people’s damaged property and injuries, subject to the policy wording. It generally does not pay to redo your own faulty work. In Arizona, the statute of repose limits contract claims after eight years, but not injury claims, so completed operations protection matters long after the job is closed.

This guide is for Arizona electrical contractors, including residential (R-11), commercial (C-11) and dual (CR-11) licensees under the Arizona Registrar of Contractors: service electricians, panel and service upgrade crews, and shops that install EV chargers, lighting and low-voltage systems alongside their main work.

Why is fire the claim that defines electrical contractor insurance?

Most electrical work is hidden inside walls and attics, and a problem can surface months or years later. The U.S. Fire Administration estimates that in 2023 there were 23,700 residential building electrical malfunction fires in the U.S., causing 305 deaths, 800 injuries and about $1.5 billion in losses. Those national figures include all electrical malfunctions, not only contractor errors, but they show why one claim can be large.

Two terms matter for everything below:

• General liability (GL) pays for bodily injury and property damage you cause to others, plus defense, subject to the policy’s limits and exclusions.
• Products-completed operations is the part of GL that covers injury or damage arising from work you have finished. It usually has its own aggregate limit, separate from the general aggregate.

What does general liability pay when a fire is traced to your work?

If the fire starts after your job is complete, the claim usually falls under products-completed operations. Subject to the policy, that can include the customer’s damaged home and contents, injuries to people in the building and the cost of defending the lawsuit. If the customer’s property insurer pays the homeowner first, expect that insurer to pursue you to recover what it paid (subrogation), and your GL is what usually responds to that demand.

If the damage happens while you are still working, the claim falls under ongoing operations instead, where two narrower exclusions apply to the specific part of the property you are working on.

What does general liability usually not cover?

Standard GL forms contain “business risk” exclusions designed to keep the policy from acting as a warranty for your own work. As Rough Notes and IRMI explain the standard wording:

• Exclusion j(5): damage to “that particular part of real property” on which you or your subcontractors are performing operations, if the damage arises out of those operations.
• Exclusion j(6): “that particular part of any property that must be restored, repaired or replaced because ‘your work’ was incorrectly performed on it.” It does not apply to damage included in the products-completed operations hazard.
• Exclusion l: property damage to “your work” once it is completed. It does not apply if the damaged work, or the work the damage arose from, was performed on your behalf by a subcontractor.
• Removed subcontractor exception: some policies add endorsement CG 22 94, which deletes that subcontractor exception. If you sub out work, check for it.

In practice, the fire damage to the customer’s house is the kind of loss GL is built for. Ripping out and replacing the panel you installed wrong usually is not.

How long can a claim come back after the job is done?

Longer than many electricians expect. Arizona’s statute of repose, A.R.S. § 12-552, generally bars contract-based actions against people who construct improvements to real property more than eight years after substantial completion. If the injury occurs or is discovered in the eighth year, a claim may be brought within one more year, up to nine years. The statute expressly does not limit actions for personal injury or death, or shorten an express written warranty.

What that means for coverage:

• Keep GL in force continuously. Most GL policies respond to injury or damage that occurs during the policy period, so a gap or a lapse after you retire or sell can leave older jobs uninsured.
• Ask about discontinued operations coverage if you are closing or selling the business, so completed jobs stay protected.
• Keep job records for at least as long as the repose period: permits, inspection sign-offs, invoices and photos of finished work.

Hypothetical: a panel upgrade and an attic fire

This example is hypothetical and simplified. A Phoenix-area service electrician replaces a 100-amp panel with a 200-amp panel and adds an EV charger circuit. Fourteen months later, an attic fire traced to a loose termination at the new panel damages the roof structure, the family’s belongings and part of the neighbor’s fence. The homeowner’s property insurer pays the family, then sends the electrician a subrogation demand.

• The damage to the house, contents and fence is the type of loss products-completed operations coverage is designed for, subject to the policy.
• Replacing the panel itself is likely excluded as damage to the electrician’s own completed work.
• If a subcontractor had installed the panel, the subcontractor exception could change that answer, unless the policy carries CG 22 94.
• The outcome turns on the actual forms, endorsements and facts. Report the claim promptly using the insurer’s instructions.

What else do Arizona electrical contractors usually need?

• Workers’ compensation. A.R.S. § 23-902 generally applies to employers with workers regularly employed in the business. Shock, fall and ladder injuries go here, not to GL. Calling a helper a 1099 contractor does not settle the question; the statute looks at control and how the work is done.
• Commercial auto. Service vans carry crews, wire and equipment every day. See why trade businesses need commercial auto.
• Tools and equipment (inland marine). Meters, testers, pipe benders and generators usually need their own coverage.
• License bond. Arizona ROC licensing requires a bond, which protects your customers rather than you. See electrical contractor surety bonds.
• Umbrella or excess liability. A single fire with injuries can exceed a $1 million GL limit, and many commercial contracts require higher limits.
• Professional liability if you design systems, stamp drawings or sell design-build work, since GL is not built for design errors.

Builders and property managers who hire you will often ask to be added as an additional insured for both ongoing and completed operations. See additional insured vs. waiver of subrogation before you sign.

What should you check on your policy before the next job?

1. Your products-completed operations aggregate, and whether it is reduced or excluded for any work type.
2. Any endorsement excluding specific work, such as solar, EV charging, fire alarm, or work on certain building types.
3. Whether CG 22 94 (or a similar form) removes the subcontractor exception.
4. Additional insured endorsements that include completed operations when your contracts require them.
5. Workers’ compensation that reflects every regularly employed worker and your actual payroll by class.
6. Umbrella limits that sit over GL, auto and employer’s liability.
7. A plan to keep coverage continuous, including discontinued operations coverage if you close or sell.

Frequently asked questions

Does general liability cover a fire caused by my electrical work?

Often, for the damage to other people’s property and for injuries, subject to the policy. A fire that starts after the job is finished usually falls under products-completed operations coverage. Repairing or replacing your own faulty installation is usually not covered.

Does my policy pay to redo wiring I installed incorrectly?

Usually not. Standard general liability excludes property damage to your own completed work, with an exception when a subcontractor performed the work. Some policies remove that exception by endorsement, so check your forms.

How long after a job can an Arizona electrician be sued?

Arizona’s statute of repose, A.R.S. § 12-552, generally bars contract-based claims more than eight years after substantial completion, or nine years in some eighth-year cases. It expressly does not limit claims for personal injury or death.

Do Arizona electricians need workers’ compensation?

Arizona generally requires workers’ compensation for employers with workers regularly employed in the business. Whether a helper is an employee or an independent contractor depends on the facts and A.R.S. § 23-902, so confirm before you assume a crew member is not covered.

Who can I contact about insurance for an Arizona electrical contracting business?

Contact PrimeRisk Insurance Solutions in Queen Creek, Arizona, or book a conversation with Kody Houk, Founder & Principal. Start with the review form above, then share your declarations pages, endorsements and a typical contract. A coverage review is not a claim decision or a guarantee of coverage.

Request an electrical contractor coverage review with your contact details and choice of a call or email.

Coverage descriptions are general education. Actual coverage depends on policy wording, endorsements, facts and applicable law. This article is not legal advice; Arizona statutes are summarized as of October 6, 2026.