What insurance should a plumber have? Plumbing is a crucial trade that ensures the proper functioning of water systems in residential, commercial, and industrial settings.
However, just like any profession that involves physical labor, potential hazards, and property involvement, this profession comes with its own set of risks.
Inevitably, accidents can happen at any time, from minor injuries on the job to major property damage due to faulty installations. For this reason, having the right insurance coverage is vital to protect both the plumber and their clients from financial liabilities.
Furthermore, insurance for plumbers is more than just a precautionary measure—it is often a legal requirement depending on the state or country of operation.
Without adequate coverage, plumbers risk significant financial loss from lawsuits, medical expenses, or property damage claims.
Insurance Policies For Plumbers
Understanding the different types of insurance policies available for plumbers can help them make informed decisions about their protection. Here are some important plumber insurance models worth considering:
General Liability Insurance
General liability insurance is one of the most critical coverages for plumbers. It provides protection against third-party claims of bodily injury, property damage, and personal injury that may occur while on the job.
What It Covers
- Legal fees and settlements from liability lawsuits
- Third-party bodily injuries (e.g., a customer slipping on a wet floor due to plumbing work)
- Advertising injuries (e.g., copyright infringement in advertisements)
- Property damage (e.g., water damage to a client’s home from an installation mishap)
Workers’ Compensation Insurance
Workers’ compensation insurance is crucial if a plumber works with a team or has employees. This coverage is designed to protect workers in case they suffer job-related injuries or illnesses. Many states require businesses with employees to carry workers’ compensation insurance.
What It Covers
- Medical expenses for work-related injuries
- Death benefits for the family in case of a fatal work accident
- Lost wages due to time off for recovery
- Rehabilitation and physical therapy costs
Commercial Auto Insurance
A standard personal auto insurance policy may not provide coverage if a work vehicle is involved in an accident while conducting business operations. Hence, commercial auto insurance ensures protection against potential liabilities arising from work-related vehicle use.
What It Covers
- Vehicle damage due to collisions
- Theft, vandalism, or weather-related damages
- Bodily injury coverage for drivers and passengers
- Third-party property damage from an accident
Tools And Equipment Insurance
Plumbers depend on specialized tools and equipment to complete their work efficiently. If these tools are lost, stolen, or damaged, it can lead to work delays and financial strain.
Furthermore, tools and equipment insurance helps cover the cost of repairing or replacing essential plumbing tools.
What It Covers
- Theft of tools from a job site or vehicle
- Accidental damage to expensive equipment
- Replacement or repair costs for essential work tools
Professional Liability Insurance (Errors And Omissions Insurance)
Also known as errors and omissions (E&O) insurance, the professional liability insurance protects plumbers against claims of negligence, mistakes, or failure to deliver promised services.
Even the most skilled plumbers can face lawsuits if a client alleges that their work led to significant damages or additional repair costs.
What It Covers
- Claims of faulty workmanship or poor installations
- Legal defense costs, settlements, and court fees
- Lawsuits arising from professional errors
Business Owner’s Policy
A Business Owner’s Policy (BOP) combines multiple insurance coverages into one comprehensive package. It is usually combined at a lower cost than purchasing them separately. What’s more, it typically includes general liability insurance, business property insurance, and business interruption coverage.
What It Covers
- General liability protection
- Loss of income due to business disruptions (e.g., fire, flood, or equipment failure)
- Damage to business-owned property or rented workspace
Frequently Asked Questions
Is Plumbing Insurance Legally Required?
Yes, it is. In many states and countries, certain types of plumbing insurance, such as workers’ compensation and general liability insurance, are legally required for operating a plumbing business. The specific requirements vary by location, so it’s essential to check with local regulations.
How Much Does Plumbing Insurance Cost?
The cost of plumbing insurance depends on factors such as the size of the business, number of employees, coverage limits, and past claims history. On average, general liability insurance for plumbers can cost between $500 and $2,000 annually.
Can A Self-Employed Plumber Get Insurance?
Yes, self-employed plumbers can and should get insurance. Even if they work alone, general liability insurance and tools and equipment insurance can protect them from unexpected financial losses.