You might think plumbing is just like any other business, but that’s not necessarily the case. You must insure a plumbing operation in unique and creative ways, and the insights listed below will help you make those decisions wisely.
Be prepared to think outside the box as you seek coverage for your plumbing company and employees. With incurred losses in the commercial sector approaching $200 million per year, you don’t want to become another “out of pocket” statistic.
Types of Insurance for Plumber
Plumbers should carry a range of insurance policies that will include:
1. General Liability
General liability coverage covers damages, medical expenses, legal fees, judgments, settlements, and more when your clients are injured or suffer damage during the course of your work. Plus, these policies cover libel, slander, advertising injuries, and even copyright infringement.
2. Professional Liability
You must hold a license to work as a plumber, and complaints against that license (and your professional integrity) are covered by this policy.
3. Workers’ Comp
You must cover your employees using workers’ comp—it’s required under the law. Even though you are required to pay for this coverage, it transfers your liability to the insurance carrier, replacing your employees’ income and paying their medical bills if they are hurt on the job. This is the most important insurance you can ever carry because it also provides death benefits for the families of workers who suffer through unimaginable tragedies.
4. Property Coverage
Commercial property (or hazard) insurance protects your facility, offices, warehouse, inventory, etc. Safeguarding those buildings is just as important as protecting your team in the field.
5. Business Interruption
The COVID-19 pandemic shut down a slew of businesses, and any time an interruption occurs, you can file a claim against this policy to recover the income you should have earned.
6. BOP (Business Owners Policy)
A BOP combines property and liability insurance to give you a package that is both affordable and easy to manage. Work with our insurance team to see if a BOP makes the most sense for your company.
7. Commercial Auto
You must use commercial auto coverage to protect all your work vehicles. Also, employees (and even owners) who use their personal vehicles for work need commercial auto coverage. You can purchase this coverage yourself and recommend it to your team. Using personal auto coverage to handle a commercial claim could prove costly and even cost you your relationship with the carrier.
8. Tools and Equipment
Insuring your tools and equipment is a wise move considering how expensive they are. You also carry a range of tools and gear on every truck, and you must have insurance protection that allows you to replace or repair these items in the event of an accident, incident, theft, or vandalism.
9. Surety Bonds
Surety bonds are provided to your clients when they need assurance that you will complete the job. Remember, a surety bond is a financial tool that allows clients to file a claim if they feel you have not held up your end of the bargain—protecting you and them. You don’t pay out of pocket—the carrier does.
How Much Does Plumber’s Insurance Cost?
Plumber’s insurance varies in price based on a range of factors, including:
· The size of your business
· Average annual revenue
· Average value of claims in your area
· Extended limits you may require
· Extra coverages you feel your business needs
Working with our insurance team gives you access to every carrier on the market, ensuring that you get better coverage at a lower cost to you. Most plumbers can expect to pay somewhere between $1000 and $4000 per year for a comprehensive set of policies with a $1 million limit, but those prices can vary significantly.
In short, premiums are cheaper than payouts. We simply want you to find the best combination of coverages and a policy that’s easy on your wallet.
Remember, though, you can’t simply choose the cheapest insurance, but there is value in considering all your options in search of good value.
Contact Caparo Insurance for More Information on Insurance for Plumbers
Contact our local team at Caparo Insurance if you have questions about insurance for plumbers, need new coverage, or want us to review your existing policy. We’re happy to help you find the best combination of coverages at an affordable price. Safeguarding your business is our first priority, and our team has decades of experience in the field that can inform your decisions.