Everything You Need to Know Before Getting Plumbing Insurance
As a plumber, you spend your time helping your clients with leaks, water pressure and clogs. Although it’s hard work, you enjoy it because it’s challenging and creative. You’ve also spent a long time getting to where you are — first and foremost in vocational school, as an apprentice until you were able to start your own business. It hasn’t been easy, but there’s nothing quite like that moment when saving a home or office from a burst pipe.
But being a plumber can get messy in case something bad happens and you find yourself on the receiving end of a liability claim. To protect yourself and your business, you might want to consider getting plumbing insurance. Here’s what you need to know.
What is Plumbing Insurance?
Plumbing insurance, also known as plumbers insurance, is something that all plumbers, septic installers, pipefitters or even general contractors who work with other professionals to provide plumbing services should consider. The reason for this is because you are putting yourself and your business at risk when you’re working uninsured.
Plumbers often work with water mains or wells, gas utilities, sewers, appliances, sprinklers and irrigation systems. Their operations often involve cutting metal or plastic and assembling them. Some plumbing contractors provide retail sales of hardware and appliances and some may offer 24 hour emergency service. Even with the risky nature of this profession aside, life is uncertain and accidents happen every day. Plumbing insurance, therefore, might be a good idea for everyone who wants to play it safe when it comes to protecting their business and assets.
Types of Plumbing Insurance
When it comes to different types of plumbing insurance coverage, one of the first things you should know is that any policy can be tailored to be made up of a bundle of policies that offer the best protection against common risks that plumbers face on a daily basis, like accidentally damaging a customer’s property. Here are a few types of plumbers insurance you should consider having.
General Liability Insurance for Plumbers
Plumbers liability insurance provides coverage against claims associated with third-party accidents, property damage, and bodily injury. General liability can also cover additional costs that result from those claims.
For example, if a customer discovers a leak in a new toilet that you installed, and the leak damages the customer’s floor, ceiling and furniture, they could file a claim against you. Without general liability insurance, you would be financially responsible for those damages. Additionally, you would have to pay for a lawyer to defend you.
Plumbers liability insurance covers:
- Bodily injury to another person
- Third-party property damage
- Personal and advertising injury
- Medical expenses
However, there are some limits to this type of policy that you should know about. Plumbers liability insurance doesn’t cover:
- Damage to your own property
- Professional services
- Workers compensation or injury to own employees
- Damage to your work
- Motor vehicles while in business use
- Expected or intentional injury or damage
Workers Compensation Insurance
If you have employees, federal law may require you to have a workers compensation policy. This type of insurance covers you and your business in case one or more of your employees gets injured or becomes sick while working for you.
Workers compensation insurance is a good idea to save you your peace of mind as a business owner as it prevents employees, even if they are part-time, from suing you for their injuries. Workers compensation policy usually covers:
- Medical payments
- Lost wages
- Rehabilitation expenses
- Death benefits
Other Commercial Plumbers Insurance Policies
These are not the only types of coverage you may need. In case you are looking for more extensive, broader coverage to completely ensure you are protected from financial risks, you might also want to add:
- Commercial Auto Insurance: This type of insurance works much like a personal auto insurance policy that is specifically designed for commercial purposes. If you use one or more vehicles for business purposes (cars, trucks, vans), commercial auto insurance is something you might want to consider. Personal auto insurance usually doesn’t cover damages and losses that happen while you or someone else is doing business.
- Additional Policy Endorsements: If you own a lot of equipment, machinery, and tools, you should consider protecting them with policy riders that protect the value. These endorsements, such as plumbers tools insurance, can get you replacements when a vital item is stolen or becomes inoperable.
Is Plumbing Insurance Required by Law?
Federal laws regarding workers compensation insurance may mean that you need this insurance if you have any full-time or part-time employees. Also, most states require plumbers to carry plumbers liability insurance and workers compensation insurance if they want to get licensed. For these reasons, covering your bases with a plumber’s liability insurance and workers compensation policy might be an idea to consider.
How Much Does Plumbing Insurance Cost?
Plumbers insurance is generally highly personalized to every plumber, so it’s difficult to give an exact quote. On the other hand, there are some factors that impact the amount of plumbers insurance you may need, such as:
- How many employees you have
- Your business location
- Your annual revenue
One of the best ways to decide on how much you are ready to pay for your policy is to shop around and ask insurance specialists about quotes.
Do I Need Plumbing Insurance?
Whether you are just starting out as a plumber or you’ve been a licensed plumber for years, accidents happen to everyone. Plumbers are especially at risk for property damage due to the line of work they’re in.
Also, many states require plumbers to be licensed before working on customer sites. Having plumbing insurance can make the process of getting licensed a lot easier.
Even if you do everything right, you still may have to deal with customers who are particularly litigious. To avoid the costs of potential suits, even when they are baseless, you might want to consider purchasing plumbing insurance. Keep in mind that you can always tailor one according to your specific needs. All you need to do is to contact the right insurance specialists.
Did you find this article helpful? If you did, you might also be interested in finding out more about different ways to protect your small business too with Business Insurance!
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