Without plumbers, we wouldn’t be able to enjoy one of the most important and basic necessities: running water. When things break down, or a new system requires installation, an experienced plumber is the first place any home or business owner looks for help. Are you building a company based on providing plumbing contractors to help maintain these critical systems? If so, acquiring plumbers insurance should be at the top of your priority list. What are these policies all about, however? From protecting your assets to safeguarding your employees, plumbing insurance is an umbrella term for many inter-connected parts. Let us help you consider what companies like yours need to operate safely and effectively.
Understanding the Parts of an Effective Plumbers Insurance Policy
The first part of any insurance package for a plumbing business will be commercial general liability insurance. Any broker will highly recommend carrying a robust liability insurance policy due to the level of protection it affords you. It is likely even to be a requirement for obtaining a license to operate. Broadly speaking, this is the policy that safeguards your business from any liability it might face as a result of general operation. For example, say that pipes worked on by your contractors fail a year or two later, causing property damage or bodily injuries. Whether or not the fault is truly yours, liability insurance helps you handle the costs of a lawsuit without risking the business.
You can choose to include other forms of insurance protection on your policy as well. For example, do you need your plumbing materials covered while at the job site? You should consider installation floater coverage. No matter the job site you are working on you may have a high dollar value of property sitting on your job site prior to completion. Plumbing materials are all subject to theft, fire or other damage while on the job site. Any loss of your property would place a heavy financial burden on your business, so mitigate that risk with the right contractor’s insurance coverage.
What determines the cost of plumbers insurance?
There are a couple of different factors that play into the cost of your plumbers insurance policy. Generally, the main factors behind the cost are:
Why Do You Need a Policy?
Aside from meeting any legal requirements concerning insurance that your business may face before it can accept jobs, there are other reasons why a plumbers insurance policy is so important. While no one starts a company expecting to encounter a lawsuit, it can happen. Accidents happen, too. Without an insurance policy designed to cover the situations plumbers face on the job, your plumbing business could face a high risk of exposure to financial and legal liabilities when something goes wrong.
Consider an example. During a routine maintenance job on a home’s pipes, you or one of your employees causes accidental damage that results in a customer’s bathroom flooding. In addition to the initial damage, your business will face liability for the damages caused to the client’s home as a result of your mistake. Such damages could be extensive. In this case, instead of reaching into your business bank account for a settlement, your insurance policy can cover the damages instead.
The same is true when clients sue your business and legal counsel advises that an out-of-court settlement is the best option. However, general liability insurance can also cover related costs if you do fight the action in court. In every scenario, though, your insurance policy protects your business’s financial health and long-term well-being. One incident shouldn’t be all it takes to derail years of hard work.
Finding Insurance Policies for Plumbers That Match Unique Requirements.
The many moving parts that make up plumbers insurance can seem intimidating at first. How can you navigate all that insurance companies have to offer while still getting what you need? At Guild Insurance Brokers & HMS Insurance Agencies, we proudly help clients just like you in the pursuit of a policy that makes sense. We can walk you through everything you need to know about each type of insurance. We look forward to helping you acquire the plumber liability insurance you need for peace of mind.