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What Are the Types of Insurance You Need as A Plumber?

Running a plumbing business comes with certain risks and liabilities. It doesn’t matter if you work alone or you manage a team, it’s paramount to have insurance coverage in place. Any incident involving the installation and repair of pipes or fixtures can lead to potential legal action. Insurance can help protect from claims of bodily injury, property damage, and other accidents that might occur on the job. You may pride yourself on a certain standard of work, but some things are completely out of your control. Insuring your plumbing business can be a good thing, to say the least. It ensures its safety, security, and longevity. Plus, it helps promote confidence in customers. 

The question now is: what types of insurance do you need as a plumber? You might need several types of policies to protect your business against lawsuits, damage, and financial liabilities. Here are some different types of plumbing insurance you might want to take into account. Purchasing insurance will offer you peace of mind and give you confidence knowing that you’re protected against various hazards and risks. 

General Liability Insurance protects you and your business from claims of third-party bodily injury, property damage, and personal injury. Claims can arise if one of your customers is injured due to work you’ve done at a residential home or commercial property. If you don’t have coverage, you have no choice but to pay for the costs out of pocket, and you may not have the resources to do that. This includes attorney, court, and expert witness fees. You should have no trouble qualifying for general liability insurance as long as you don’t carry out unusually risky work and you don’t have a history of frequent claims. 

Liability can arise from ongoing operations or completed operations. Ongoing operations apply to work that is considered in progress. The insurance policy provides coverage while you’re actively underway on a project. Completed operations apply to work that’s undertaken beyond the contract or project’s conclusion. For instance, if a leak is found and that leak causes significant water damage, the insurance policy will cover the damage caused to the customer’s place. Make sure there’s a clause for completed operations. 

Business Property Insurance 

Business property insurance helps cover your business’s physical location, whether you own or lease your property. If a fire were to break out in your office and destroy all your plumbing equipment, your insurance policy would cover the damage. How much you’ll pay for business property insurance depends on a myriad of factors, including location, construction, occupancy, and fire and theft protection. When you’re in the market for business property insurance, make sure you have the necessary information for a quote. This includes identifying information, not to mention the address of the place you want to insure. A plumbing business is just like any other business, so you need business property insurance to protect your assets. 

Workers’ Compensation Insurance 

Workers’ compensation insurance is legally required for all plumbing businesses with employees. Employees who are injured or succumb to illness as a direct result of their job are entitled to cash benefits and/or medical care. A person loses their right to workers’ compensation benefits only if the injury or illness is their own fault. By agreeing to receive workers’ compensation, people give up their right to sue the employer. Put simply, you can avoid the greater costs of a lawsuit. Common examples of accidents on the job are falls from heights (such as ladders), sewer trench collapses, and hand tool injuries. 

Every task related to the job can result in accidents, which translates into increased costs for your plumbing business. You need workers’ compensation insurance, even if you have only one employee. In some states, workers’ compensation coverage is necessary when you reach three or more employees. However, it’s better to be on the safe side. Safety audits, regular training, and the creation of a safe work environment can reduce the cost of your premiums. Don’t leave things to chance. You can buy workers’ compensation insurance from a private company or a state-run agency. It’s not the same thing as business liability insurance, to be clear. 

Commercial Auto Insurance

The chances are that you own a fleet of vehicles, which allows your employees to get to and from plumbing jobs. Everything’s tossed inside – tools and equipment. What do you do if a car is stolen or involved in an accident? Well, you have to dig deep into your pockets. It pays to have commercial auto insurance. Insure your fleet of vehicles separately from your plumbers’ insurance policy. The insurance policy will cover accident-related expenses stemming from injuries, death or property damage. Commercial auto insurance applies to vehicles owned or used in business. Personal use isn’t covered by a commercial policy. 

Tools And Equipment Insurance 

The tools and equipment used by a plumber are crucial to getting the job done. Some of these items can’t be used for common plumbing problems but come in handy in emergency situations. Accidents can happen at any time, so you need coverage for tool theft, equipment breakage, vandalism, misplaced or lost items, and damage to leased equipment. Actually, it’s recommended to have tools and equipment insurance before you start to work. You may be able to add this coverage to another policy, such as general liability insurance. Make sure your gear is protected at all times. 

Most tools and equipment insurance won’t cover against corrosion, wear and tear, and rust. Get a quote to see the options for your plumbing business. You’ll be required to answer basic questions about your business and operations. The insurance company will want to know more about where you do business, how many years you’ve owned the company, the number of employees, your expected annual revenue, and more. If you work with subcontractors, make sure they’re fully insured. Anything they do can result in trouble for both of you. Subcontractors don’t count as employees, so you don’t have to include them on your insurance policy. 

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