Plumbing businesses are businesses. Just like any other business, you need business insurance to protect your personal interests and assets. Whether you are a residential or commercial plumber, you have unique challenges, risks, and insurance needs. These are among the types of insurance you need to purchase if you own a plumbing business.
Business Owner’s Policy
This is the gold standard for all business owners. It is not the only protection you need, but it does cover the essentials for your business including:
Property Insurance. This refers to insurance protection for the building you operate your business out of and where you store your business equipment and tools when not in use. It also offers protection for the various tools you use in your business, such as torches, pipe wrenches, pipe threading tools, pipe and tubing cutters, sleeve pullers, and more as well as office equipment, computers, inventory, and furniture.
General Liability Insurance. If a customer stops by your business property and slips and falls or if the awning from your shop blows away and damages a window from another shop, general liability insurance will cover legal fees and judgments made against your plumbing business.
Business Interruption Insurance. If your business is interrupted due to a loss damaging your business building, this insurance helps to protect your income while your business is being repaired. Since most plumbers operate more outside their “offices” than in, this type of protection might not be as critical, but when widespread events happen that displace communities and businesses, it can be vital.
These are the pillars of a standard business owner’s policy. It is important to note this is a starting point for insurance protection and should never be the sum total of your insurance coverage.
Other Types of Insurance Coverage Plumbers Require
Not only is it important to have outstanding general liability protection, but plumbing businesses today also need to invest in professional liability coverage in case something goes wrong in the aftermath of a job and to protect yourself from nuisance lawsuits.
Business Auto Insurance. You spend a lot of time traveling to and from homes or businesses to perform your work. In many cases, you carry tools and plumbing supplies with you, in trucks or panel vans, to save time and facilitate a prompt response for your customers.
For this reason, it is essential that you have sufficient business auto insurance to protect your investment in your business vehicles as well as enough protection to cover the tools, equipment, and inventory you carry as well. Don’t forget the importance of business auto liability coverage also as it can protect the financial interests of your business if you’re found to be at fault in an accident.
Workers Compensation Insurance. Workers Comp is essential for plumbers who have employees. Most states require this type of protection at a minimum unless you are a sole proprietor with no employees.
Even if workers comp isn’t required, it’s a good idea to have as it provides some protection for your business from claims made against you related to workplace injuries and accidents.
Inland Marine Insurance. Some companies require the additional purchase of this type of insurance to protect inventory, tools, and plumbing supplies as they are transported between job sites.
It is important to work with an agency that understands the local business landscape to identify specialized needs you may have for insurance coverage to meet local regulations. The key is to make sure you have all the essential coverages and the right amount of protection.
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