Insurance for Plumbers: How Does a Professional Plumber Handle Insurance and Liability Issues?
When you start your company, you have to be careful about your expenses. The more you spend, the harder it becomes to make a profit. Despite this, getting liability insurance and workers' compensation is crucial because it protects you from expensive lawsuits filed by customers, employees, and the public. Like many other home service businesses, plumbing companies are at risk of lawsuits. Even if all employees are responsible and well-trained, property can get damaged. Taking out a good insurance policy shows that you are a responsible business and gives customers confidence in your services. In some areas, it is also a requirement for getting your plumbing license.
Plumbing Liability Insurance
Liability insurance covers you if you cause injuries or damage someone's property while working as a plumber. Because we live in a litigious society, you might face serious consequences if the injured party decides to sue you. Lawsuits can cost hundreds of thousands of dollars. Your plumbing liability insurance covers the cost of the damage as well as your legal fees. When taking out a policy, make sure it is targeted specifically to home service businesses. Many insurers offer comprehensive plumber insurance policies that cover the most common risks people in this profession face. If you're not sure what you need, speak to an insurance agent. They can compile quotes for you and explain the features of each offer.
Workers' Compensation Insurance
While liability insurance protects you from lawsuits filed by customers or the public, it doesn't cover problems related to your employees. Instead, you need a separate policy called workers' compensation. This covers the medical payments, rehabilitation costs, lost wages, and death benefits of workers who got injured or passed away while on the job. In most states, businesses have to take out workers' comp if they have at least one employee. Different types of policies are available, and not all of them are equally comprehensive. The best way to find out more is to either reach out to an insurance professional or use comparison sites to find good quotes.
Other Insurance Policies
Your insurance needs depend on the size and structure of your business, the number of employees you have, and your financial health. If you don't have many assets, you need to get more insurance because even a small accident could deplete your resources. In this case, you might need tools insurance because it would be difficult for you to replace all your equipment if it got stolen or damaged in a natural disaster like a flood. If you have a vehicle, you have to get business auto insurance, which covers damage caused during a car crash. Some policies only pay for third-party damage, but others cover the policyholder's vehicle as well. Depending on your circumstances, you might also need to get property insurance, key-man insurance, and business interruption insurance.
Reducing Risk in a Plumbing Business
Liability insurance covers the financial damage caused by lawsuits, but you still have to be careful to avoid them. If you get sued, you have to spend countless hours dealing with the situation, and your business's reputation suffers. Fortunately, you can reduce your risk by running your company as efficiently as possible. Make sure you have a good hiring process in place, so you can find the most competent and responsible employees in your area. Provide extensive safety training and good safety equipment. Make sure everyone in your company understands how to prevent issues. Check in and communicate with your customers regularly, so you can understand their needs and problems. If an issue arises, apologize to your customer, cover their costs, and offer them additional services free of charge. This shows them that you're a considerate professional and reduces the risk of a lawsuit.
How Plumbing Dispatch Software Can Help
Good home service software makes it easier for you to stay on top of all your day-to-day tasks. In particular, it facilitates communication with your customers and employees. A program like ServiceBox allows you to store all your customers' data in one convenient place that can be accessed by you and your employees. That way, everyone can look up service records, and the risk of errors and faulty installations is reduced. ServiceBox also helps you to manage your schedule more easily. With the drag-and-drop scheduler, you can view and edit each employee's tasks. When you make changes, the new information is sent to the relevant workers' devices, so they get updates even if they're out and about. That way, you no longer have to worry about scheduling mistakes.
How Much Do I Need to Spend on Insurance and Software?
The cost of insurance depends on the size of your company, your location, your firm's history, and your risk levels. Most plumbing businesses pay $50-$250 per month for plumber liability insurance and between $100 and $250 for workers' compensation. Additional policies increase the overall cost of insurance, but they provide businesses with additional protection. Good plumbing software providers like ServiceBox don't charge a lot. Our plans start at $25 per user per month. Most of our clients notice a significant increase in their income and a reduction in their expenses after they start working with us. Many no longer need administrative staff because everyday processes are automated. This makes the small expense well worth it. Insurance for plumbers is essential because it protects them from costly liability issues. Most companies also benefit from using plumbing dispatch software because it simplifies admin and prevents careless mistakes. Give us a call at ServiceBox to find out more about our program. We can help you with scheduling, quote and invoice creation, marketing, customer information management, time billing, and more.