Your Ultimate Guide to Plumbers Insurance
Running a successful business as a plumber requires more than just excellent customer service and technical know-how. You need to ensure that you are protected just in case things go wrong, for example, burst pipes, which can ruin customers belongings or fixtures and fittings. Also, things you didn’t plan for are likely to happen at some point in your career, so having the right cover is essential.
As with any insurance policy, it’s important to understand the cover options available and tailor them to your specific needs.
There are many benefits to taking out dedicated insurance for plumbers rather than your standard business insurance. Bespoke insurance for your business is more flexible, as you have the ability to take out individual coverage options as and when circumstances change. Plumbers’ insurance is more comprehensive because all of the risk factors associated with your business will have been identified from the outset. With this type of policy, you are less likely to have gaps in your coverage.
There are important things for you to consider when taking out plumbers’ insurance:
Public Liability Insurance:
This insurance generally provides cover if your plumbing services result in financial losses or injuries to a client due to errors, omissions, or negligence. It’s particularly crucial for plumbers, as mistakes in plumbing work can cause significant damage to properties and incur substantial costs.
There is always a risk of something going wrong, no matter how skilled or careful you or your team are. If this happens and someone makes a claim against your business, you will have cover for the legal costs. The cover would also pay for any successful claim award up to the amount of indemnity you have acquired.
Public liability insurance isn’t compulsory. But, without the cover, could you afford to fund a claim out of your own pocket? Most people and businesses couldn’t.
Employers Liability Insurance:
If you have employees, then this insurance is typically required by law, and you must have a minimum of £5 million in cover. It is there to protect your employees if they become ill or suffer injuries as a result of working for your business. It also covers damages, compensation costs, and any legal fees if an employee files a claim against you.
This also applies to anyone you may give instructions to, such as an apprentice, a labour-only subcontractor, or volunteers.
Failing to obtain employer’s liability insurance will result in possibly substantial fines of approximately £2,500 for every day you don’t have adequate insurance.
You could also get a fine of £1,000 if you do not display your employer’s liability certificate at your premises or refuse to provide proof to inspectors when they ask.
Commercial Property Insurance:
This protects your business property if you have one, including tools, equipment, and stock, against risks like fire, theft, or vandalism.
This type of insurance specifically covers your plumbing tools and equipment against loss, theft, or damage. Since plumbers often use expensive specialised tools, this type of cover can be crucial to ensuring that your equipment can be replaced if something happens to it.
Most insurers will expect you to be careful with your tools, and when they aren’t in use, you will need to lock them away.
Your tools are normally covered against theft when you have taken steps to prevent theft, like in a locked, alarmed building or within a locked vehicle.
You should keep an inventory of your tools and keep copies of receipts. If you have suffered the loss of your tools being stolen, the insurer will also need you to obtain a police crime number.
Business Interruption Insurance:
Business interruption insurance helps protect your income if your plumbing business is forced to temporarily shut down due to a covered peril, such as a fire or a natural disaster. It can provide financial support for ongoing expenses and lost income during the period of interruption.
Every policy has its limitations, what’s important is whether they’ve been clearly explained in your policy. Limitations are the maximum amount of money that an insurance company will pay out for a claim in a policy period. These amounts are typically specified on the insurance policy. If losses exceed the limitations for a policy period and the policyholder has no additional insurance, then they themselves will be responsible for the excess losses.
Before purchasing plumbers’ insurance, assess your specific business needs and potential risks. Consider factors like the size of your business, the number of employees, the nature of your work, the types of projects you undertake, and the location of where you work. This assessment will help you determine the appropriate types of cover and coverage limits you require. Remember to review your policies regularly to ensure they still align with your business’s needs as it evolves and grows.
We have the ability to combine individual coverage options into one policy with a single premium structure. Here at 1st Choice Insurance, we take the time to talk to you about your insurance needs before designing a contract that meets the demands of your business.
We have access to a wide range of insurers, and we can offer a variety of policies best suited to fit you and your business’s needs.
If you would like a quote for plumbers’ insurance, contact us on 01743 770500 or simply fill out our quote form, and a member of our friendly team will give you a call back.
Happy with our service? Leave us a review!