By Chris Smith
Whether you are a residential or commercial plumber, you face several risks during the repair and installation of plumbing systems. Your assets are at risk of loss or damage, employee injuries may prevail, or sudden disasters that might compromise your source of income. So, getting insurance coverage is a good investment for plumbers as it preserves personal and business interests. Depending on the risk you want to protect your business against, there are various insurance policies to explore.
Like many construction jobs, getting plumbing business insurance isn’t always as easy as in non-construction industries. Here are a few tips to help you understand what you need and how you can get the best deal on plumbing insurance.
Here is Why Plumbers Purchase Insurance.
Most States Require that Plumbers have Liability Insurance.
When acquiring or renewing a license to perform plumbing work, many states require that you provide proof of liability insurance for your plumbing business. The state requirements usually specify that plumbers get a general liability insurance policy and sometimes a license bond.
Plumbers want to Protect their Business.
You have spent thousands of hours investing in and growing your business, so it makes sense to insure it. That business supports your family, your lifestyle, and your retirement plans. When a business grows, many construction companies will either buy comprehensive insurance or increase their insurance limits to protect their investment so that an accident can’t substantially affect the company.
Customers Require It.
Although some residential plumbers don’t have to bother about this, plumbers who do commercial work are almost always needed to have liability insurance. Usually, retail customers will need a general liability policy, a commercial auto liability policy, and workers’ compensation before work can start on a project.
What Types of Insurance do Plumbing Contractors Need?
Although plumbing business insurance can look different depending on the size of your business and the type of work you are doing, here are some coverages almost every plumbing business needs:
General Liability (With Completed Operations Coverage)
Commercial general liability (or plumber liability) is the policy that every plumbing company should purchase, no matter their type or size of customer. This covers liability from “ongoing operations” and liability from “completed operations” for plumbing contractors.
Businesses that have employees are usually required to purchase workers compensation insurance. This policy funds for the medical bills of any employee who is injured on the job, as well as costs such as lost wages while the employee cannot work. In most states, workers’ compensation coverage is needed by law and most commercial customers.
Most plumbing businesses have a work truck or work van they use for transportation to any job site. A commercial auto policy guards your business against liabilities arising from your work vehicles. It can also cover the vehicle if it were destroyed, whether it be a collision or some other cause.
From small hand tools to trenching equipment, plumbers usually have a significant amount of equipment they need to run their business. A contractor’s equipment policy includes the loss of or damage to the tools or equipment, whether the cause is an auto accident or theft from a job site.
Most states require that you buy a plumbers license bond before you can obtain a plumbing license. For the low price of these bonds and the significant consequences of letting them lapse, it is always best to buy in three-year increments, if available in your state.
Chris Smith is a published author, passionate about helping people understand content marketing through his easily digestible materials.