As a plumber, it is expected that you go to sites to work, and in some cases, you will be required to climb buildings. Trust me, this can be risky hence it is required that a plumbing business purchase the required insurance policy cover for the business.
Aside from the inherent risks associated with climbing buildings, there are other risks that plumbers are exposed to as a result of carrying out their jobs.
Once a plumbing business is registered and ready for operations, there are basic insurance policies they will need before going full swing into the business. They are expected to speak with any insurance company or brokerage company of their choice.
Once they settle for the insurance coverage they need, the plumbing company will be required to sign the contract and pay the required premiums for each policy coverage.
Signing the insurance documents and paying the required premiums automatically activates the insurance coverage. So, once there are any claims, the insurance company will be required to pay the claims after carrying out their investigation to be sure the claims are genuine and fall within the coverage the plumbing company subscribed to.
For example, if a plumber gets injured while carrying out his or her duties for a plumbing company, the plumbing company will file a claim, and the insurance company is mandated to pay the claim (for the treatment of the injured plumber).
Best Insurance Policy for a Plumbing Business
General liability Insurance
General liability insurance is no doubt, one of the best insurance policies that a plumbing business must have. This is important because general liability insurance offers liability insurance coverage that helps protect a business from claims because of bodily injuries or property damage to others within your business premises.
The truth is that, if you do not have general liability insurance coverage, you will be required to pay from your pocket whenever there are bodily injuries or property damages when carrying out your job as a plumber.
Cost of General Liability Insurance for Plumbers
In the United States, plumbers pay an average premium of less than $125 per month, or $1,480 per year, for general liability insurance. This policy provides protection against third-party injuries, third-party property damage, and advertising injuries.
- Median cost per year: $1,480
- Policy limit: $1 million per occurrence
- Deductible: $500
Workers’ Compensation Insurance
Workers’ compensation insurance policy cover is yet another compulsory insurance policy coverage that a plumbing business should have. The fact that you will have some employees working with you means that you will need workers’ compensation insurance.
As a matter of fact, it is illegal to have workers and not have workers’ compensation insurance. Workers need to be protected from workplace accidents, disability et al.
Cost of Workers’ Compensation Insurance for Plumbers
In the United States, the average premium of workers’ compensation insurance for plumbers is less than $180 per month, or $2,130 annually.
Commercial Auto Insurance
Another very important insurance policy coverage that a plumbing business should have is a commercial auto insurance policy cover.
The fact that plumbing businesses usually transport their men, materials, equipment, and tools with a utility truck makes it mandatory for them to subscribe to commercial auto insurance. Commercial auto insurance protects the cars, trucks, and vans that you use for your plumbing business.
Please note that the business vehicles for your plumbing business can also include company cars and commercial trucks and vans. Commercial auto insurance can help pay for property damage and medical costs in an accident, along with weather damage, theft, and vandalism.
The Cost of Commercial Auto Insurance for Plumbers
In the United States, with an average premium of about $150 per month, or $1,795 annually, commercial auto insurance can provide basic coverage for all the vehicles of your plumbing business.
- Median cost per year: $1,795
- Policy limit: $1 million
Contractor’s Tools and Equipment Insurance Coverage
A contractor’s tools and equipment insurance coverage is another essential insurance policy that all plumbing businesses must have.
Contractors’ equipment insurance is an insurance policy that covers specific equipment and tools owned or in possession of a contractor. Contractor’s tools and equipment insurance provides protection for tools and equipment against dangers like fire, theft, vandalism, and flood, among others.
Please note that the contractor’s tools and equipment insurance also cover the repair or replacement of lost, stolen, or damaged tools and equipment.
The Cost of Contractor’s Tools and Equipment Insurance for Plumbers
Plumbers pay a median premium of about $15 per month, or $170 annually, for contractor’s tools and equipment coverage.
- Median cost per year: $170
- Policy limit: $5,000
Professional liability insurance
Lastly, professional liability insurance policy cover is yet another insurance policy that is suitable for a plumbing business. Although professional liability insurance might not be one of the compulsory insurance policies for a plumbing business, but trust me, you will need one if you own a plumbing business.
This is so because professional liability insurance protects plumbers against lawsuits from unsatisfactory, late, or incomplete work. It’s also called errors and omissions insurance (E&O).
The Cost of Professional Liability Insurance for Plumbers
In the United States of America, construction businesses and contractors pay an average of about $85 per month, or $1,000 per year, for professional liability insurance.
- Median cost per year: $1,000
- Policy limit: $1 million per occurrence.
Please note that the overall cost of insurance your plumbing business is supposed to pay will be dependent on your policy limits, your business risks, your equipment value, and other factors.
What Insurance Companies Offer Such a Policy?
- Acuity Insurance
- Allianz Life
- Allied Insurance
- American National Insurance Company
- Accident Fund Insurance Company of America
- American International Group (AIG)
- AmTrust Financial Services
- Gerber Life Insurance Company
- Globe Life And Accident Insurance Company
- GMAC Insurance
- Mutual of Omaha
- New York Life
- State Farm
- Pacific Life
- 21st Century Insurance
- Liberty Mutual
- Lincoln National Corporation
- Manhattan Life Insurance Company
- Nationwide Mutual Insurance Company
- New York Life Insurance Company
- MEGA Life and Health Insurance
- Zenith Insurance Group.
Please note that apart from the insurance policy cover and the insurance companies listed above, there are other insurance policies and insurance companies not listed above that provide all the needed insurance policy covers that a plumbing business will need.
Interestingly, there are several insurance brokerage companies that you can contact if indeed you want to get it right with choosing the right insurance policy for your plumbing business.