Plumbing insurance is a must for those working in the plumbing-related industries, especially for small-business owners. There are many factors that determine what type of insurance will be best for you. Here is a detailed guide on plumbing insurance that will help you make a more informed decision about the type of plumbing you choose.
- What is Plumbing Insurance
Plumbing insurance refers to a collection of different types of policies that protect a plumbing business from damage, monetary liabilities, and potential lawsuits. Plumbing insurance can provide coverage to prevent and handle common risks that plumbing contractors face. These include:
- Damage or theft of plumbing equipment/ tools
- Injury to any employees while on the job
- Injury to client or property damage as a result of plumbing work
- An accusation against the plumber claiming the job wasn’t done right/ major errors were made
- Medical expenses of a car accident caused while heading to complete a plumbing job
- Who should have Plumbing Insurance
Any individual who works in the plumbing sector should have plumbing insurance. This includes a number of professions such as plumbers, plumbing and piping contractors, septic and drainage system workers, sprinkler installers, water, and sump pump installation, servicing contractors, water system testing contractors, home builders, renovators, and developers.
In certain states and cities, it is mandatory for plumbers to carry plumbing and general liability insurance. Without one they won’t be allowed to work on private and commercial projects. Insurance policies vary from state to state, for instance, some require plumbers to have business insurance in addition to their plumbing insurance.
- Types of Plumbing Insurance
In order to invest in the best plumbing insurance, one must first understand the different types of insurance available and what each one covers.
The first is general liability insurance that covers third-party injuries and property damage. For instance, suppose your client tripped on a tool you’d placed on the floor while repairing a plumbing system and as a result broke their wrist. In this situation, your general liability plumbing insurance would cover the medical expenses of your client’s treatment.
If any of the client’s belongings were damaged during the incident, the insurance would cover for that too. Any details regarding how to procure this type of insurance, you can get it here in the form of a detailed guide. Professional liability insurance works similarly, but it mitigates any claims of negligence, unprofessionalism, or breach of contract made by your client.
For instance, if you make an error while fixing an issue that causes major damage to the client’s plumbing system, you could be at the risk of a legal lawsuit. Your professional liability insurance would cover all costs related to a legal settlement.
Then there is worker’s compensation in which workers who get sick or injured while on their job get covered for. In business property insurance, business properties or commercial buildings that are damaged during the plumbing process or by accidents are insured.
Tools and equipment insurance refund the cost of any tools or equipment damaged or stolen while working. Commercial auto insurance is another type of insurance where vehicles used for your business are covered in the chance of an accident resulting in major human damage. Product liability insurance is one of the last major insurance plumbers must have.
If you are injured or property damage is caused by any faulting products, such as pipes and tubes, then this insurance is used to mitigate any resulting costs. When you have in-depth knowledge of all the different types of plumbing insurance, choosing the right ones for your business becomes easier. Based on the structure of your business and work and what type of issues you commonly face, you can choose an insurance plan best suited for you.
- Cost of Plumbing Insurance
Another thing to consider before investing in insurance is to see whether your budget allows for it. While the initial cost may discourage you from buying it, the long-term advantages outweigh this by a mile. Costs also vary based on business location, nature of your business/ plumbing work, number of employees, claims history, and amount of coverage needed. The more coverage you need, the higher the insurance prices will be. But at the same time, you will be getting services that are your money’s worth.
The right plumbing has a significant impact on your plumbing business. Most issues faced by plumbers in their field of work are accounted for by plumbing insurance. If you’re not sure where to start, consult a professional who can walk you through your options. Irrespective of the type of plan you choose, plumbing insurance will help you safeguard your profession and business.