As a plumber, your concerns are about getting rid of a clog for a homeowner or connecting pipes correctly in new construction. As a businessperson, you also need to be aware of litigation risks. That’s why you need plumber liability insurance.
No company, especially one in the construction trades, can afford to be without adequate insurance coverage. Putting safety first keeps workers safe and the job on track, but problems will happen. You might use a defective part that results in flooding.
Could you and your business survive the thousands and thousands of dollars it would take to fix and to reimburse the client for lost income? Very few could. Plumber liability insurance is a necessity for your business.
What Liability Covers
Litigation can wipe out the financial underpinnings of your plumbing company. Most lawsuits are the result of an injury that expands to a trip to court, but there are other types of litigation to worry about.
With plumber’s liability, you are covered according to the terms and conditions of the policy. It handles six main areas:
- Advertising—if you make harmful claims in an ad about a competitor, you are covered.
- Bodily injury—if someone is hurt on your business premises or if at a client site, you are covered.
- Completed operations and products liability—after a job is done, if the client feels you didn’t meet his expectations or didn’t do part of the work required, you are covered.
- Independent contractors liability—if someone you hire as an independent contractor does something wrong, you are covered.
- Medical payments—if someone is injured at your place of business or work site, you are covered.
- Personal injury—this covers damage to the reputation of a person or another business because of slander, libel or copyright infringement, you are covered.
Who Needs Insurance?
It’s not just plumbing contractors who need to worry about insurance. Construction worksites are often the scene of problems which lead to lawsuits. Here is a look at 10 types of construction trades that need plumbing insurance coverage:
- Plumbing contractors
- Septic tank installers
- Pipe fitters
- Home builders
- Plumbing business owners
- Sprinkler installers
Other Insurance for Plumbers
You can sometimes bundle your plumber liability with a Business Owners Policy, usually called a BOP. You also need workers’ compensation for your employees. Depending on the type of vehicles you use, you need coverage. There are several forms of vehicle insurance available, including coverage for:
- Commercial vans
- Business auto
- Box truck
- Commercial trailers
Speak to your insurance agent to determine which types of insurance you need and the coverage amounts. Adequate business insurance gives you peace of mind so you can concentrate on what you do best—handling plumbing problems.