What is plumbers insurance?
Plumbers insurance also referred to as plumbers liability insurance is not a high risk for injuries, but it could potentially cause a lot of property damage if a project didn’t go as planned. A good insurance policy covers any damages or injuries resulting from faulty work. Public liability insurance will also pay for compensation payments or legal costs if you’re found responsible for a mishap. Without insurance, you may find yourself out of business in no time. Getting the correct type of policy is essential for your business.
Who needs plumbers insurance?
Regardless of your experience, accidents and unforeseen events still happen and it is important for any plumbing business owner to protect themselves financially. You can be a residential or commercial plumber and have various risks. The following are (but not limited to) recommended to insure their business:
- Master plumbers
- Commercial plumbers
- Service and repair plumbers
- Residential plumbers
- Sanitary plumbers
- Water supply plumber
What insurance do plumbers need
If you run your own plumbing business, it is essential to cover your company and assets with plumbers insurance. Plumbing insurance is essential for many reasons. It protects the company from any claims made by third parties from accidents, your plumbing equipment, and materials. Depending on the policy it also protects your building from damages. Here are some common types of plumbers insurance:
General liability insurance
Liability insurance protects your business from injuries and damage to customers’ property. The first step in protecting your plumbing business is ensuring that your insurance policy covers any damages and claims related to the work you do.
- Bodily injury: This component covers work-related injuries. Unless you have plumbers’ bodily injury insurance, you may be personally responsible for any client or other contractor injuries. The insurance will cover the costs of medical care andattorney’s fees if the customer sues you.
- Property damage: This can be a serious issue for plumbers and is typically quite expensive. The average claim for this type of insurance is almost $30,000, which can catastrophic to the business. However, there are ways to minimize this risk by having property damage as a component of the general liability policy. Plumbers are often responsible for damage to their client’s property and the cost of repairs.
- Personal injury: Plumbing companies are regulated by state law and must have personal injury insurance to protect themselves against lawsuits. It can also protect the company from advertising, products, or work claims lawsuits. Most insurance policies for plumbers will cover damages to rental premises
Commercial auto insurance
When it comes to commercial auto insurance for plumbers, you can find a wide range of options that suit your business needs. These policies are essential for plumbing contractors since they cover damages and losses caused by accidents involving their vehicles. Having liability coverage is important because it protects both the company vehicle and the other driver in a collision, even if you were not at fault. It also offers peace of mind while you are driving for work. Here are the different vehicle classes that can fall under the policy:
- Light vehicles: Sedans, small trucks, vans, SUVs, and other smaller vehicles.
- Heavy vehicles: Equipment trucks, dump trucks, etc.
- Trailers: Utility trailers, container trailers, etc.
Errors and omissions insurance
Helps protect plumbers from liability if they make an error while working on a job. This type of insurance can help protect you if a customer sues you for damages. It can also help protect you if you are sued for malpractice. For example, if you accidentally sell the wrong plumbing fixture to a customer due to miscommunication, the policy will help protect you from the claim.
Commercial property insurance
Designed to protect businesses that do plumbing work and have a brick-and-mortar store. This type of coverage will depend on the size of the business, but typically you can expect to be covered for theft, breakage/vandalism, and liability if someone slips and falls in your retail store.
Workers’ compensation insurance
Pays out for medical expenses for accidents that cause workers to become ill or injured while working.
What are the limits of plumbers insurance?
The standard limit for plumbers insurance is $1M per occurrence and $2M in aggregate limit. The tier-up in limits for a policy is $2M per occurrence and $4M in aggregate limit.
How much does plumbers insurance cost?
Your premiums will vary based on multiple factors, including:
- Deductibles: A higher deductible will usually lower policy cost than one with a lower deductible.
- Limit per occurrence: You have many options for the coverage limits, and a higher limit will increase the policy’s overall cost.
- Location(s): Your premium will be higher if your job site is in an area with statistically higher theft or natural disasters than other areas.
- Number of employees: A higher number of workers means a greater risk of an accident and a higher insurance exposure.
Plumbers typically pay a premium ranging from $330-$600 annually.
How to choose the best plumbers insurance
It is vital to compare rates from different insurers and find one that is affordable for your business, and best meets your needs. Questions you should consider are to help with selecting the best policy for you could include:
- How quickly does the insurance company respond?
- What does the insurance policy cover?
- Do they have a professional reputation?
- What are the payment options?
You can come up with questions based on your specific needs and select the insurance company and plan that is right for you and your business.