The cost of plumbing insurance depends on various factors, including where you live, what kind of business you run, whether you have any employees, and how much your company's assets are worth. There are several policies, but the most basic one, called general liability, protects you against lawsuits filed by your customers, for example, because you inadvertently injured them or damaged their property. Premiums vary by location, services, payroll, revenue, coverage limits, claims history, and insurer.
Most plumbers also get professional liability insurance, which is a bit more specific and covers issues related directly to the job and to professional negligence. Professional liability and workers’ compensation are separate coverages whose availability, requirements, and cost vary. Check applicable state rules and compare quotes with a licensed insurance professional.
How to Find a Good Insurance Company
In most areas of the US, there are many competing insurance companies. If you want to find the best quote, you should start by researching potential insurers online and comparing their offers. Before signing anything, you should always read the fine print to check what is included and excluded. Some policies are cheap they won't cover you adequately if you run into trouble.
To avoid making a costly mistake, you can speak to more experienced plumbers in your area. They might be able to recommend insurance companies and policies. Alternatively, you could speak to an insurance agent, who can help you find and compare relevant quotes.
What Other Costs Are There?
Insurance is just one of your ongoing costs as a plumber. You'll also have other business expenses. Some of them, such as education, your car, and your tools, are one-off setup costs that won't be repeated every month. Others, like plumbing software and marketing, will have to be paid on an ongoing basis. Startup costs vary widely with licensing, training, vehicles, tools, insurance, location, and the services the business will provide.
Education
Before you can become a fully qualified plumber, you have to go through a rigorous training process, which might involve attending plumbing school and completing an apprenticeship. While you're an apprentice, you'll already be earning money, but if you need to go to school first, you might have to spend several thousand dollars on your education. Training costs vary by provider, program length, location, and available financial assistance; confirm tuition directly with each school or apprenticeship sponsor.
Licensing
After you've completed your plumbing training, you have to take an exam to become a licensed plumber. Exam, license, permit, and business-registration fees vary by state and locality. Confirm the current requirements and fees with the licensing authority and business registry where you operate.
Once you have your plumbing license, you can work in your state for several years: often two or three at a time. Then, you have to get your license renewed and pay the fee again. In some states, you might also have to continue your education with courses and advanced certifications. No matter if this is essential or optional, it's good to stay up to date with the newest developments, so you should aim to take two to three courses per year.
Plumbing Software
When you run your own business, you don't only have to perform tasks related to plumbing. Instead, you'll also have to do the marketing, coordinate your schedule, reply to customer requests, create quotes, create invoices, and more. All these tasks can take up a lot of time and cause stress. To avoid this, you can purchase home service software that can simplify your admin process significantly.
Good software is comprehensive, which means that you only have to purchase one subscription, and it can handle a wide range of tasks. Software cost depends on team size, workflow, and plan. Review the current ServiceBox plans and pricing for up-to-date details.
Cars and Tools
Almost every plumber needs a truck because they visit customers at home. Unless you already have a suitable vehicle, you'll have to buy one. Vehicle purchase and maintenance costs depend on condition, market, usage, insurance, and the equipment the business needs to carry.
Additionally, you'll purchase some tools you need to perform your job. Tool and supply costs depend on the services offered, quality requirements, and whether equipment is purchased new, used, rented, or financed.
Marketing
Plumbers are always in demand, but even if you have a lot of potential customers, you have to make sure they know about your business. While word-of-mouth and offline advertisements can work well, you should also create a solid online presence.
Some of the best digital marketing strategies include setting up a website and posting regular updates to your social media accounts. Website costs vary with scope, content, integrations, accessibility, maintenance, and whether the work is completed in-house or by a specialist.
Every plumber who starts their own business has to purchase insurance to protect themselves from issues such as a lawsuit, property damage, or a loss of income due to unforeseen circumstances. Premiums vary, so compare current quotes and coverage rather than relying on a generic price estimate. Call us at ServiceBox to find out more about how to set up your company successfully. We can help you reduce your setup costs by providing you with all-in-one software.
Primary source: The U.S. Small Business Administration’s business-insurance guide explains common policy types and notes that legal requirements vary by state.
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