Plumbing Contractor Insurance

If you're a plumbing contractor, you've got a lot on your plate. You have to make sure your clients are happy, and protect your business from any surprises. Having the right business insurance policies can help.

Plumber Insurance: Top Risks to Consider

Before we dive into the types of insurance policies that are available for plumbing contractors, let's talk about why insurance is so important. Plumbing businesses face a variety of risks that could lead to financial losses, lawsuits, and even the closure of the business. Some of the top risks that plumbing contractors face include:

• Accidental damage to property during a job
• Personal injury claims from a customer or third party
• Employee injuries or illnesses on the job
• Lost wages due to work-related injuries
• Theft or damage to plumbing tools and equipment
• Damage to business property caused by fire, weather, or other perils
• Business interruption losses due to property damage
• Professional errors or omissions that cause harm to a client

Plumbing businesses should carry several standard commercial insurance policies to protect against these risks.

Types of Plumbing Contractor Insurance

There are several types of insurance policies that plumbing contractors need to consider. Let's take a look at some of the most important ones.

Plumber Liability Insurance

Liability insurance, also known as plumbing business liability insurance or general liability insurance, covers your business in case of accidental damage to property, personal injury claims from a customer or third party, and legal fees and settlement costs in case of lawsuits.

For example, if a customer slips and falls on a job site, this insurance policy will cover medical expenses or legal fees that may arise.

Plumber's Workers' Compensation Insurance

Workers' comp insurance covers your employees in case of work-related injuries or illnesses. This policy covers lost wages, medical bills and rehabilitation costs.

For example, if one of your employees gets injured on the job, workers' compensation insurance will cover their medical bills and lost wages. It will also cover any rehabilitation costs that may be necessary for them to return to work.

Workers' compensation policy premiums are based on the type of work employees perform. As a plumbing business, it's important to classify your employees accurately based on their job functions as this could significantly impact your workers' compensation premiums.

As a skilled trade, plumbers are at a higher risk of work-related injuries plumbers are at a higher risk of work-related injuries than other industries. In addition to being highly physical work, specific risks plumbers face include:

• Use of large equipment, like drain cleaning machines and threaders.
• Use of potentially dangerous tools, like welders and press tools.
• Working at heights, in trenches and outdoors.
• Potential exposure to harsh chemicals, sewage or mold.

Also keep in mind that subcontractors are the liability of the general contractor, unless they carry their own workers' compensation insurance. General contractors often must cover subcontractors under their work comp policy, or require proof of insurance before stepping on the jobsite.

Plumber's Property Insurance

Plumbers need specialized equipment to do their work, including power tools, hand tools, and other equipment. In addition, they may store supplies and inventory at their business location. if this equipment or property is stolen, damaged, or destroyed, it can have a significant impact on the plumbing contractor's ability to continue operating their business.

Property insurance provides coverage for your business property, like an office space, as well as some tools, inventory and equipment. For example, if your plumbing tools are stolen from your work truck, plumber's property insurance will cover the cost of replacing them. If your office is damaged by a fire, this insurance policy will cover the cost of repairs.

Plumbing Tools Insurance

Tool or equipment insurance can provide additional coverage for plumbing tools and equipment. This policy covers damage or theft of expensive tools and equipment, losses due to tool breakdowns or malfunctions, and costs associated with renting or replacing lost or damaged tools.

For example, if your expensive drain cleaning machine breaks down during a job, plumbing tools insurance will cover the cost of repairs or replacement. If your tools are stolen from your job site, this insurance policy will cover the cost of replacing them

Professional Liability Insurance for Plumbers

Professional liability insurance, also known as errors and omissions insurance, can help protect plumbing contractors from claims of negligence, misrepresentation or breach of contract. This type of insurance policy can help cover legal fees and settlement costs in case of lawsuits.

Coverage options for professional liability insurance for plumbers can vary depending on the specific needs of the contractor. Some policies may include coverage for defense costs, while others may only cover settlements or judgments. It is important for plumbing contractors to work with their insurance agent to find the right coverage for their business.

Examples of scenarios covered by this insurance policy:

• Professional errors or omissions that cause harm to a client (i.e. recommending use of a plumbing tool that ends up damaging a customer’s pipes or bathroom tile)
• Claims of negligence, misrepresentation or breach of contract
• Legal fees and settlement costs in case of lawsuits

Plumbing Contractor Bonds

Plumbing contractor bonds are actually a type of insurance policy that helps protect customers from financial loss due to a plumbing contractor's failure to meet their obligations. These bonds can help ensure that the contractor completes the work they have been hired to do, pays their suppliers and subcontractors, and follows building codes and regulations.

How do plumbing contractor bonds work? When a plumbing contractor purchases a bond, they are essentially purchasing a guarantee that they will fulfill their obligations. If a plumbing contractor fails to meet their contractual obligations, the customer or supplier can file a claim against the bond to recover their losses. The surety company that issued the bond will investigate the claim and, if valid, pay the claimant up to the bond's limit. The plumbing contractor will then be required to repay the surety company for the amount of the claim.

Plumbing contractor bonds can also protect against violations of building codes or regulations. If a contractor violates a building code or regulation, the bond can be used to pay any fines or penalties that may be imposed.

Examples of scenarios covered by this insurance policy:

• Failure to complete a project on time or within budget
• Failure to pay suppliers, subcontractors, or employees
• Violations of building codes or regulations

Plumbing Business Interruption Insurance

Plumbing business interruption insurance, also known as business income insurance, can help plumbers recover lost income and pay ongoing expenses if their business is forced to shut down due to a covered loss, such as property damage from a fire or natural disaster. Business interruption insurance can cover lost income, ongoing expenses, and extra expenses incurred to minimize the interruption of business operations.

Coverage options for plumbing business interruption insurance may include:

• Lost income due to business interruption
• Ongoing expenses, such as rent and utilities
• Extra expenses, such as renting a temporary office or equipment

Plumbing Contractor Auto Insurance

Plumbing contractor auto insurance, also known as commercial auto insurance, can provide coverage for plumbing business vehicles, such as vans or trucks, and protect the business from financial loss due to accidents, theft, or other damage.

Coverage options for plumbing contractor auto insurance may include:

• Liability coverage for injuries and property damage
• Collision coverage for damage to the business vehicle
• Comprehensive coverage for other non-collision damage, like theft or vandalism
• Uninsured/underinsured motorist coverage

Plumber's Small Business Insurance

Small businesses are actually defined as having fewer than 100 employees, and micro-businesses have fewer than 10. Regardless of your business size, there are a few things to consider when buying small business insurance:

• Policies have lower limits, and therefore are more affordable.
• The same basic risks and same policies apply no matter your business size. General liability, professional liability, commercial property and commercial auto are relevant to plumbing businesses of all sizes.
• Not all insurance carriers will cover very small businesses. That’s why it’s important to work with an agency that specializes in this market.

Examples of scenarios covered

Here are some examples of scenarios that may be covered by plumber's small business insurance:

• A customer slips and falls on a wet floor in your plumbing shop and is injured. Your general liability insurance could help cover the customer's medical bills and any legal fees if they decide to sue your business.
• A fire breaks out in your plumbing shop and destroys all of your equipment. Your commercial property insurance could help cover the cost of replacing your equipment.
• A client sues you for damages related to a plumbing service that you provided. Your professional liability insurance could help cover the cost of legal fees and any damages awarded to the client.

Plumbing Employee Insurance

If your plumbing business has employees, it's important to have the right insurance policies in place to protect your business and your employees.

Here are some insurance policies that plumbing companies may need if they have employees:

• Workers' compensation insurance: This coverage can help cover medical expenses and lost wages for employees who are injured on the job.
• Employment practices liability insurance: This coverage can help protect your business from lawsuits related to employment practices such as discrimination, harassment, and wrongful termination.
• Group health insurance: This coverage can help provide your employees with affordable health insurance options.

Plumbing Contractor Workers' Comp Insurance

If you are a self-employed plumbing contractor without any employees, you may be wondering if you need workers' compensation insurance. The answer is, it depends.

In most states, workers' compensation insurance is required for businesses with employees. However, if you are a self-employed contractor, you may be exempt from this requirement. It's important to check with your state's laws to see if you are required to have workers' compensation insurance.

When purchasing workers' compensation insurance as a self-employed contractor, you'll need to consider whether to include or exclude yourself in the policy. Including yourself in the policy will increase the cost of the insurance, but it will also provide coverage for injuries you may sustain while on the job.

Even if you are not required to have workers' compensation insurance, it's still a good idea to consider purchasing a policy. Accidents can happen, and if you are injured on the job, workers' compensation insurance can provide coverage for medical expenses, lost wages, and other costs associated with the injury.

It's also important to note that some job sites may require proof of workers' compensation insurance before allowing contractors to step onto the site. Without this proof, you may not be able to work on certain jobs.

If you work with subcontractors, you may also need to consider whether to cover them under your workers' compensation policy. In some cases, subcontractors may be required to carry their own workers' compensation insurance, and as the general contractor, you may be held liable if they don’t have an active policy.

It's important to discuss these issues with your business insurance agency to ensure that you have the right coverage in place for your business.