Insurance for Plumbers: Why Do You Need It?

Why Do Plumbers Need Insurance?

If you're a plumber, you probably find yourself in some messy situations. You are the person people call when their pipes burst, their toilet is clogged, or they need a simple repair. They are relying on you and your company to be prepared and knowledgeable. No matter what your plumbing business focuses on, it is important to review any types of work accepted when considering insurance risk.

A big part of being prepared comes before you even get the call. Protecting your small business with a business insurance policy is key to cutting costs. A major issue that plumbing contractors face when deciding on the insurance coverage needed is that no two may do the same type of work. Some plumbers may only work on commercial building projects. Others may do residential projects or repairs.

That's why it's important to use a licensed insurance agent every step of the way to design your business insurance. Make sure to review what your business does and what types of services you provide so an unforeseen incident doesn’t wreak havoc on your business.

There are many commercial insurance options for a plumbing business. CommercialInsurance.Net is here to help you make the best-educated decision to save money and meet your plumbing insurance needs. 

Insurance for Plumbers: What Do You Need?

Do you need general liability coverage? Perhaps professional liability insurance coverage? Here are the types of insurance we recommend including in your plumber's insurance.

Business Owner's Policy

A Business Owners Policy (BOP) typically includes general liability insurance, property insurance, and business interruption insurance. Because of the way a BOP is bundled, it’s often cheaper to purchase than each individual policy. 

General Liability Insurance: A plumbing business needs to have a general liability insurance policy in place. General liability insurance protects your business in the event a claim is brought against you for third-party bodily injury, property damage, and advertising injury.

Commercial Property Insurance: Property insurance for your business is very similar to the homeowner’s coverage you carry personally. You are protecting the building, furniture, and business equipment such as phones and computers.

Business Interruption Insurance: If your company suffers a loss that leaves you unable to operate, business interruption (or business income coverage) can cover lost profits, payroll, taxes, and more. 

Insurance for plumbers can be affordable with a business owner's policy. Be sure to speak with an insurance agent to see what your options are.

Other Insurance Policies that a Plumber Needs

What are some other insurance policies that a plumber should consider to protect their company?

Workers' Compensation Insurance

If you hire a plumbing contractor or other employees, you are required to get workers’ compensation insurance. This policy will protect your business if an employee is injured in a job-related injury. Workers comp' will pay an employee's medical bills and lost wages while they’re recovering. This policy will also protect your business from being sued by the employee.

Learn More About Workers’ Compensation Insurance >

Commercial Auto Insurance 

If you or your employees use a box truck, van, or even your personal vehicle for work purposes, you need commercial auto insurance. If you get in an accident it can help cover the cost to repair any damages to the vehicle and any injuries that may occur that would not be covered by personal auto.

Learn More About Commercial Auto Insurance >

Inland Marine Insurance

Inland Marine Insurance—also referred to as Contractors Tool and Equipment Insurance—covers any tools and equipment in transit to or stored at a job site. Most plumbing operations include doing late-night calls—are you sure your tools and equipment will be safe in your vehicle? Commercial auto insurance doesn’t cover anything not permanently attached to your vehicle so consider this to protect your expensive tools.

Learn More About Inland Marine Insurance >

Professional Liability Insurance

If you make a recommendation to one of your customers and it leads to severe damage to their plumbing, they can hold you liable. Professional Liability Insurance—also known as errors and omissions—protects a plumber against claims negligence, civil suits, and professional errors or mistakes. 

Learn More About Professional Liability Insurance >

How Much Does Insurance Cost for Plumbers?

Next Insurance offers general liability insurance plans as low as $29 a month—but for a limited amount of coverage ($300,000 per incident/$300,000 aggregate). The median cost of general liability insurance for a plumber is around $125 a month or $1,400 annually. But the cost depends on a variety of factors, including:

• Whether or not your business has a history of claims
• The state/city your business is located in
• How many employees/contractors you hire
• The type(s) of insurance that you choose
• The coverage limits and deductibles that you choose
• The insurance company that you get coverage from

The key to maximizing coverage coupled with affordability is working with your licensed insurance agent every step of the way in formalizing your plumber’s insurance package.

Plumbers Insurance: Get a Quote Now

Let us help you protect your business and keep your mind at ease. Our goal at CommercialInsurance.Net is to help small business owners like you protect your business as efficiently as possible. If you’d like a fast and free insurance quote for a plumbing insurance policy, complete the form at the top of the page or give us a call at 877-907-5267.