Plumbing insurance is a combination of several different policy types that work together to protect your business from many potential damages. These can include anything from lawsuits to equipment replacement, vehicle coverage, client injuries, and more. But what insurance options are going to be the best choices for your business? 

Well, while there are specialized insurance options that may help niche aspects of your business, there are also several common commercial insurance options that can work together to ensure you’re getting all of the coverage you need. 

Let’s take a closer look at who needs plumbing insurance before diving into the best insurance options for plumbers.

Who Needs Plumbing Insurance?

“Who needs plumbing insurance?” may seem like a question with a very obvious answer, but the variety of professionals who need plumbing insurance may surprise you. Plumbers and plumbing contractors are, of course, at the top of the plumbing insurance list, but the following professionals may also need plumbing insurance as their work directly relates to plumbing in some way:

• Septic System Workers
• Piping Contractors 
• Drainage System Installers
• Sewer Hookup Contractors
• Sprinkler Installers
• Sump Pump Installers
• Sump Pump Servicing Contractors
• Water Pump installers
• Water Pump Servicing Contractors
• Water System Balancing Contractors
• Water System Testing Contractors
• Home Builders
• Home Developers
• Home Renovators
• Handypersons

Note that some of these professionals may be required by their state’s laws to carry plumbing insurance to work on either residential or commercial projects in addition to a valid plumbing license.

Best Insurance Options for Plumbers

There are many excellent insurance options plumbing professionals may want to invest in, but if you’re looking for the best insurance options for your industry, the following seven policy types are going to be the most beneficial to your work.

General Liability Insurance

At the very least, plumbers need to carry a general liability insurance policy. This coverage type can protect your business from several different potential sources of damage including third-party claims of bodily injury, property damage, and personal or advertising injury.

So, if you’re working on a residential bathroom and a client trips over pipes you’ve left laying out, breaking their leg in the process, a general liability insurance policy will help cover their medical expenses, legal fees if applicable, and any settlement fees that result from a lawsuit.

Similarly, general liability insurance can cover the cost of replacing items you damage during your work on a client’s property such as a window you may have cracked or shattered while installing a toilet or sink.

Professional Liability Insurance

Professional liability insurance can work to offset your financial risk if you are faced with claims of professional negligence, error, breach of contract, or failure to deliver service on time.

If, for example, you quote a client’s project with a two-week timeline, and you exceed that limit, professional liability insurance can step in to cover any resulting legal or settlement fees if your client takes legal action against you.

Alternatively, if you make a mistake during an installation that causes damage to the system or other parts of your client’s property, professional liability insurance can also provide assistance.

Business Property Insurance

Business property insurance protects both your buildings and property from damages. These damages can include certain accidents, stipulated weather events, and other hazards that damage part or all of your property.

If a small fire breaks out in your office, business property insurance can cover the costs of repairs to your structure and replacements of your computer, desk, and anything else that was damaged in the room. If that fire gets out of control and spreads to the rest of your building, destroying all of your work equipment in the process, business property insurance can help you recover or replace everything that was damaged.

Worker’s Compensation Insurance

If you have any employees, worker’s compensation may be a non-negotiable policy type for your business. Workers comp provides coverage to offset the costs of medical expenses that your employees incur when they are injured or get sick on the job. 

Typically in the United States, workers comp is required by law for businesses, so if one of your plumbers falls off a ladder while installing piping or picks up an illness from either a fellow employee or client, financial assistance is available to cover any necessary medical expenses.

Commercial Auto Insurance

Commercial auto coverage can provide insurance for any vehicles you use for business. This coverage works to offset costs relating to accidents that result in injury, death, or property damage.

So, if you’re driving to a client’s property to fulfill a work order and accidentally side-swipe another vehicle on your way, commercial auto insurance can step in to repair the other driver’s vehicle.

Product Liability Insurance

If you face claims of bodily injury or property damage relating to a defective product, product liability coverage may be a solution for you. Product liability works to cover you against claims relating to flawed products which may include pipes, tanks, or other related items.

So, if you unknowingly install a defective pipe in a bathroom, and the pipe breaks, causing water to flood your client’s home, product liability insurance can step in to cover the costs of repairing the issue as well as any resulting water damage or other injuries in addition to legal and settlement fees.

Tools and Equipment Insurance

Tools and equipment insurance works to safeguard you against the theft, loss, or damage of the implements you need to do your job. Typically, this insurance type can be included with other policy types–like general liability insurance–but if it’s not, you may want to consider investing in it separately.

Key Takeaways

There are many great insurance options for plumbers on the market, and they work together you protect you from liability in several ways. Whether you’re thinking about investing in general liability insurance or you want to go all-in with each one of these options, reach out to our skilled agents at Keller insurance to discuss the best plumbing insurance options for you.