Types of Insurance Options to Consider If You’re a Plumber
Running a busy plumbing business comes with many inherent risks, from defective products and unsafe work environments, to faulty installations and human error. Insurance should be on your priority list because protection is essential to keeping your business afloat. It is vital to have the right insurance policies in place to protect you and your plumbing business. It might even be required by some states for plumbers to have particular coverage requirements to be adequately licensed. Having insurance could prove important when potential clients require proof of insurance as a condition for hiring. Let’s look at four types of insurance options to consider if you’re a plumber.
Public Liability Insurance
Essential for all plumbing contractors is public liability insurance, which provides cover that can protect your plumbing business against claims made by individuals injured due to your actions at work. It is possible for things to go wrong on a job that can cause damage, stemming from something like a poorly fitted pipe. A claim could be filed against the replacement of the pipe, and/or compensation against the damage that resulted from your poor plumbing workmanship. If you lay your equipment out and an individual trip over it, a claim may be brought against you for any injury sustained, and you could be liable for medical bills, rehabilitation and other associated costs.
General Property Insurance
Another important insurance for plumbers to have is general property insurance. Plumbers are always on the move, traveling from one location to another for a job. You take your equipment and tools wherever you go because they are an integral part of getting the job done. They can become lost, damaged or stolen, which can result in significant inconvenience, and also be costly to replace or repair. Your out-of-pocket expense could hit your pocket books, but your plumbing gear is essential, and general property insurance offers cover for the equipment and tools that make your business possible.
Workers’ Compensation Insurance
If you have employees in your plumbing business, workers’ compensation is a requirement that provides cover for medical expenses and a portion of lost wages for employees who suffer injury or illness stemming from their job duties or employment. Not having workers’ compensation coverage can have a huge financial impact on your business if faced with a lawsuit for workplace injuries, or if you were found to be out of compliance with workers’ compensation laws.
Errors and Omissions Insurance
While you may be one of the most skilled plumbers out there, you can make mistakes on the job and so could one of your employees. E&O insurance is an important one that can help to protect you against claims directly related to “errors” and “omissions,” if a client claims that the work was done incorrectly. Your faulty work could lead to damages for which you could be held liable, and E&O insurance can help mitigate those costs.
Covering your bases is vital to protecting you and your plumbing business. Insurance options to consider as a plumber includes: public liability cover, general property cover, workers’ compensation cover and errors and omissions cover.