If you're just starting out as a plumbing contractor, you might not know what kinds of insurance you need. Is insurance for plumbers even necessary, and if so, what types of policies are best? Insurance requirements vary by state, locality, business structure, employee count, contracts, vehicles, and the work performed. Appropriate coverage can protect the business from losses that might otherwise be difficult to absorb. Let's have a closer look at the various policies and what they protect you from.
Is Insurance for Plumbers Necessary?
Virtually every plumber needs to get insurance because it protects them from expensive lawsuits that could ruin their career and financial future. However, the type and number of policies vary depending on the individual situation of the professional. Someone who is employed by a plumbing firm might only need general or professional liability insurance.
On the other hand, someone who runs their own company and has staff should also purchase contents insurance and employers' liability insurance. If you're not sure what kind of insurance is best for you, consider seeing a specialist or insurance agent, who can analyze your individual situation and help you find the best policy for your business.
General Liability Insurance
The most important kind of insurance for any plumber is general liability. This protects you when you accidentally damage your customer's or a third party's property or when someone gets injured while you're working at their property. For example, your insurance provider will pay for the damage if you fail to tighten a connection and therefore cause a leak, which damages a part of your customer's home.
Similarly, you're covered if your customer gets injured as a result of your presence in their home or your work, for instance, if they get scalded because you didn't set the temperature control correctly. You can also claim money from your insurance provider if you're sued for slander because you or an employee said something unflattering or false about a customer. The insurance company will pay for the compensation you owe as well as the legal costs.
Business Vehicle or Contents Insurance
Almost every plumber has to visit customers at their homes, which is why the business vehicle is so important. If it malfunctions or breaks down, it's unlikely that you can get to your customers and do your job. Therefore, having the car or van insured can be a good idea. You won't have to pay if there is a problem with it, so you can get it fixed ASAP without worrying about the money.
In addition to your business vehicle, there might be other pieces of equipment that would be expensive to repair or replace. In this case, you should consider taking out contents insurance. Often, this type of policy isn't very expensive, and it can make your business costs more predictable. When you have contents insurance, you won't have to pay unexpected maintenance fees.
Employers' Liability Insurance
If you're running a one-man business or you're employed at another plumber's firm, you don't need to worry about employers' liability insurance. However, as soon as you start running your own company and employing others to work for you, you need to get this kind of policy because it can prevent you from experiencing financial difficulties if an employee takes legal action against you.
Your employers' liability insurance kicks in when one of your workers gets injured or ill while completing a job for you and then decides to sue you. You might have to pay your employee's medical bills and their lost wages, and you might also have to compensate them for the emotional pain the injury caused. A good insurance policy will pay all the expenses related to the case.
How Can I Find a Good Insurance Company?
As you can see, there are several kinds of insurance policies available to plumbers who run their own small businesses. You might need all of them, or you might only need to get some.
Once you and your agent have decided which types of insurance you need, they can help you find the best provider in your area. There are always several options, and not all of them offer the same amount of value. Your insurance agent can show you all the available quotes, so you can find the company that offers all the cover you need at the lowest price possible.
How Much Will Insurance Cost?
There is no dependable one-size-fits-all premium. Insurers may consider location, services, payroll, revenue, vehicles, equipment, limits, deductibles, claims history, and other underwriting factors. Compare current quotes for equivalent coverage, and confirm any legal or contractual requirements with the relevant state authority and a licensed insurance professional.
What Other Tools Do Plumbers Need?
When setting up your business, getting insurance is a great first step because it allows you to protect your company from financial problems. However, it isn't the only thing you'll need. You should also get a tool that can help you manage your customers' information, quotes, invoices, payments, inventory, and employees. Home service software is helpful for almost every plumbing company because it saves a lot of time and replaces additional employees.
Because we live in a litigious society, insurance for plumbers is crucial. If you're setting up your own business, you might need general or professional liability insurance, business vehicle and contents insurance, and employers' liability insurance. What's more, you'll need a software that can manage your business for you. Contact us at ServiceBox to find out how we can help you set up and run a successful plumbing company.
Primary source: The U.S. Small Business Administration’s business-insurance guide summarizes common policy types and advises checking state requirements.
