Is Plumbing Insurance Worth the Investment?

Plumbing Insurance Worth

Many homeowners have a trusted plumber that they call when there is an issue with their plumbing. When a problem arises it is important that the homeowner can count on their plumber to arrive quickly, fix the problem correctly and leave the job site clean. One way to ensure that their plumbing company is a trustworthy one is to have them carry the proper insurance. Insurance for plumbers can cover a wide range of problems that may occur on the job. But is it worth the investment? Insurance for plumbers covers a broad range of risks, so the answer to that question will depend on each individual situation.

The minimum coverage that a plumber should carry is general liability insurance, which will protect the business against claims for third-party bodily injury and property damage. A standard business insurance package typically includes this type of policy, as well as commercial auto insurance, which covers a plumbing service’s vehicle accidents and workers’ compensation insurance for any employees that are injured while on the job.

Liability and auto insurance policies are typically affordable for most plumbers, with premium rates based on each business’s risk. Other types of insurance can be more expensive for a plumbing contractor, including a business owner’s policy that will bundle commercial general liability with commercial property insurance to protect office space and tools, as well as business interruption insurance that will pay for the costs associated with lost income while a plumbing business is closed for repairs due to a covered event.

Is Plumbing Insurance Worth the Investment?

A plumbing company can also benefit from a materials floater policy, which is similar to an equipment floater but for plumbing supplies like pipes and sinks that are in transit to the job site. This type of coverage can help prevent a huge financial loss when a pipe or sink is stolen or damaged during the course of a job. It can also be helpful to add a property replacement cost endorsement to a plumbing insurance policy, which will provide the amount needed to replace the items at today’s prices rather than their depreciated value.

Each state has different requirements for the types of insurance that a plumber must carry, but most will require a workers’ compensation and commercial general liability policy at a minimum. Some will also require a plumbing bond, which is a security deposit that must be maintained in case of a license violation or unsatisfactory work done by a plumber. These bonds are generally fairly inexpensive and can be purchased online with a simple application and credit check.

While it is not required by law to have insurance as a plumber, it can be a great way to show your customers that you are a reliable and dependable company. In addition, it can be a valuable marketing tool to use in advertising and attract new clients. If you are considering getting insurance for your plumbing company, be sure to talk with an experienced insurance agent to learn more about the different options and coverage limits available.