The Complete Guide to Plumbers Insurance

When you run a plumbing business, it’s crucial to consider purchasing insurance coverage to give financial protection from the many risks that could emerge in your work. If an unforeseen disaster occurs, whether it’s an expensive auto accident, an injury caused by your work, or a fire, recovering can be costly and complicated. Plumbers insurance can give you, your employees, and your clients’ peace of mind and help your business continue to operate in these situations. This guide will provide you with all the necessary information to make an informed decision about plumber insurance.

What is Plumber Insurance?

It is a type of business insurance. Like all business insurance, it combines and matches different policy types and is highly customizable depending on your business’s niche and size. This coverage can be sold in premade packages, or this policy can be fully customized. An independent insurance agent can help you find a package that meets your business’s needs, or they can help you begin from scratch.

Who Needs Plumbing Coverage?

Anyone who performs plumbing work needs insurance for plumbers. That includes plumbing contractors or business owners, septic tank installers, pipefitters, renovators, remodelers, home builders, and general contractors. It protects these pros from all the worst scenarios of plumbing.

What Types of Plumbers Insurance Do I Need?

It’s critical to understand the different types of plumbing insurance, so you can determine which policies match your needs. The most popular plumbing business insurance policies are:

General Liability Insurance

Plumbing liability insurance covers property damage and accidental injuries related to your work as a plumbing contractor. In many areas, proof of commercial general liability insurance is necessary to obtain a plumbing contractor license or sign a client contract or commercial lease. Plumbing liability insurance is needful since it protects your business if your work causes property damage or bodily injury to customers.

Examples of plumbers liability insurance include:

• Repair expenses for property damage to a customer’s home;
• Physical injury to a client leading to a lawsuit;
• Plumbing installation issues.

Workers’ Compensation Insurance

A workers’ comp covers the medical bills and payroll costs of employees injured while working for your plumbing firm. Many states require workers’ compensation insurance for plumbing companies with employees. It ensures your injured employees get medical care and compensation for lost wages if they are injured on the jobsite and protects employers from lawsuits. Each state differs on workers’ compensation requirements for employees or for those who hire subcontractors.

Workers compensation insurance for plumbers can cover:

• Medical payments;
• Lost wages;
• Rehabilitation expenses;
• Death benefits.

Commercial Auto Insurance

As a plumbing service business, your technicians are frequently on the road in company vehicles driving from one job to the next. If your employee is caused a collision, it could be expensive for your firm, especially if it involves injuring another motorist.

Most states require registered vehicles to carry a liability policy. Like you protect your vehicles with insurance, it’s necessary to have commercial auto insurance to protect your business’s vehicles and provide protection if you or your employees are in an accident.

This coverage protects your company-owned vehicles from:

• Collision damage to another vehicle;
• Property damage in an accident;
• Medical bills arising from a third-party injury’;
• Vandalism or theft.

Commercial Property Insurance

Property insurance for plumbing firms protects your commercial property investment, including office space and any equipment or tools stored in the company’s leased or owned property. This policy typically covers the building’s cost, if owned by the company, and its contents owned by the business, in case of disasters such as vandalism or fire.

Business Owners Policy (BOP)

In case you operate out of a physical location, this is a good option. BOP for plumbers and plumbing businesses combines general liability and property coverage in one policy. It is generally more affordable than purchasing the same coverage separately.

Other Commercial Insurance Coverages to Consider

The mentioned above coverages are not the only policies that you need. You should also look for more extensive coverage to completely ensure that you are protected from financial ruin. For example, you might want to add:

• Umbrella insurance – It protects from catastrophic losses that exceed an underlying policy insurance limits. It’s relatively inexpensive and protects you from claims that would more than likely wipe out any business financially;
• Business interruption insurance – What would you do if your company is unable to operate for a month or two? Would you be able to continue paying rent and covering payroll, or would you have to think about closing for good? Business interruption insurance helps you cover those unexpected shutdowns. It pays your regular expenses and helps you continue to finance your team throughout the shutdown;
• Data breach insurance – Even plumbers store sensitive information. You keep a list of your customer’s contact info and process their credit cards for payments at a minimum. Hackers can attack your business to get that data from the database. It doesn’t matter how small your firm is. You’re at risk. About 60% of small companies get targeted by hackers every year across every industry. Data breach insurance covers the cost of settlements and damage caused by cybercriminals.

How to Find Right Policy and Insurance Provider

Whether you are just starting and need basic, minimum coverage, or you are following your business’s growth plan and require extra levels of protection, it’s essential to find the right policy and insurance provider. As with any financial commitment, it’s vital to do your research. Before you pick an insurance provider, get referrals and check reviews or complaints.

To determine if an insurance company is right for you:

• Find out if they are familiar with plumbing contractors insurance;
• Check the financial strength of the provider’s insurance companies;
• Shop and compare prices/benefits.

A qualified insurance agent will conduct an analysis to help you determine what policies you need and the amount of coverage to protect your firm. Once you know your priorities and invest in financial protection, you will be ready for the next step in your company’s growth.