What is The Preferred Utilities Program?
The Preferred Utilities Program is a specialized insurance solution designed to address the unique liability exposures and operational risks faced by utility service providers. This includes companies involved in gas, water, and electric utilities, as well as related infrastructure services. Whether operating in public or private sectors, these organizations manage complex systems that present ongoing hazards, such as property damage, equipment failure, or service interruptions.
Who needs it
This program is ideal for utility operators, municipal service providers, contractors working on utility infrastructure, and companies managing energy distribution systems. Organizations maintaining water treatment facilities, natural gas lines, or electric grid systems often require this coverage to manage facility risks and meet client or regulatory expectations. Even smaller subcontractors may need protection due to their exposure on job sites.
What it typically covers
Coverage under a preferred utilities insurance program generally includes:
- General liability – for third-party bodily injury or property damage
- Commercial property coverage – protecting buildings, substations, and equipment
- Contractor’s equipment coverage – for tools and machinery used on-site
- Commercial auto coverage – for company-owned service vehicles
- Pollution liability – addressing environmental exposures from leaks or spills
For example, if a gas line repair causes accidental damage to nearby property, general liability coverage would help manage the resulting claims.
Common exclusions or limitations
Policies may exclude intentional misconduct, known prior claims, or damages from unreported maintenance failures. Some pollution exposures or cyber liability risks may require separate endorsements. It’s also common for insurers to limit coverage for subcontracted work unless those parties carry their own insurance.
Factors that influence cost
Premiums for utility insurance are influenced by several underwriting factors, such as:
- Scope of operations and service area
- Claims history and loss trends
- Age and condition of infrastructure
- Number of employees and vehicles
- Risk management practices in place
Contractors and operators with strong safety records and updated systems may qualify for better terms.
Proof of insurance & compliance
Many municipalities and clients require proof of insurance before awarding contracts or issuing permits. The Preferred Utilities Program offers certificates of insurance that demonstrate compliance with those requirements, helping utility providers maintain eligibility for public and private projects.
How to get a quote
To explore coverage options and receive a tailored quote, complete our easy online application. Our specialists will help assess your exposures and recommend appropriate protections.
Get a quote now to protect your utility operations with the right coverage.
For more in-depth coverage options, including Utilities Pollution Liability Insurance or broader Public Utilities Insurance, explore our related programs.
Frequently Asked Questions
What types of utilities are eligible for this insurance?
Gas, water, electric, and renewable energy service providers, as well as infrastructure contractors, are typically eligible for coverage.
Is pollution liability automatically included?
No, pollution liability is often offered as an optional endorsement or separate policy depending on the insurer and risk profile.
Do utility contractors need this insurance?
Yes, especially if they work on pipelines, electric lines, or water systems. It helps manage job-site hazards and project-specific liability exposures.
What documents are needed to get a quote?
Basic information about your operations, number of employees, vehicle fleet, and claims history will help underwriters provide an accurate quote.
Can I get coverage for equipment used in the field?
Yes, contractor’s equipment coverage is typically available to protect tools and machinery used at service locations or job sites.
Still have questions? Talk to a local insurance expert.