Plumbers Insurance 101

If you are going to become a plumber, then one of the things you will need to protect your business is insurance that is tailored to your needs.

In this post, we are going to tell you everything you need to know to get started with plumbers insurance. We will go over the basic requirements, the types of business insurance for plumbers, the cost for plumbers insurance, and a few carriers worth considering.

Plumbing Insurance Requirements

In order to become a plumber, you will need a license from your state. One of the requirements to get your license is insurance.

You will need to check with your state to find out the minimum amounts of coverages you must carry in order to satisfy their requirements.

Be aware that on top of general liability insurance and any other types of insurance your state specifies, you will also be legally required to purchases workers’ compensation if you have any employees.

Why You Need Plumber Insurance Coverage

Along with conforming to the regulations in your state so that you can legally operate as a plumber, you need the insurance to:

• Protect your business from unexpected legal and medical costs.
• Repair or replace tools and equipment promptly when necessary to minimize interruptions to your business.
• Boost your reputation, reassure prospective clients, increase your access to jobs, and grow your revenue.

There is a lot that can go wrong when you are working as a plumber.

Here are a few examples of situations where plumbing insurance could come to your rescue:

• A pipe bursts while you are working. Regardless of whether it was your fault, the client blames you, suing you for the damages. Thankfully, your insurance covers it.

• You make a mistake that causes a client to be burned by hot water. Your insurance kicks in to cover their medical costs and any legal costs that result from the mishap.

• While you are at a job, someone steals some of your equipment. Thanks to your insurance, you are able to afford replacements right away, preventing you from needing to reschedule your upcoming jobs.

Those are just a few examples of why plumbers insurance is a must.

Types of Insurance for Plumbers

Here are some of the most common types of insurance policies for plumbers:

• General liability insurance: This is the type of coverage that protects other people and their property. If you injure someone else or damage somebody else’s property while doing your plumbing work, the policy can pay out. Remember to make sure you are meeting the plumbers liability insurance requirements for your license.

• Errors and omissions insurance: Another type of policy that all plumbers should consider is errors and omissions coverage. If a client accuses you of causing them harm through negligence of some kind, then you may be able to pay the legal or medical costs involved by falling back on this type of policy.

• Commercial property insurance: Since general liability insurance does not cover your own commercial property, only other peoples’ property, you are going to want to get commercial property insurance for your plumbing business.

• Business owner’s policy: You can combine general liability insurance and commercial property insurance into a single type of policy called a business owner’s policy, or BOP.

• Business interruption insurance: What if something happens that causes a complete interruption of your business? Perhaps, for example, you cannot do your job because your equipment was damaged or stolen. Business interruption insurance will help cover the income you are losing while you wait to get back to your usual working schedule.

• Worker’s compensation: It is legally required that you buy workers’ compensation if you have any employees. It will cover lost wages and medical costs if they are injured or get sick on the job.

• Cyber insurance: If you accept electronic payments for your services as a plumber or if you store customer data electronically, it is wise to consider getting cyber insurance that can protect you in case of hacks or leaks.

• Commercial auto insurance: Protect your commercial vehicle using commercial auto insurance. It works just like your personal auto insurance, except that it is for the vehicle you use for plumbing.

• Tools and equipment insurance: This is a type of coverage that specifically protects your tools and equipment from damage or theft.

• Surety bonds: This is a special type of coverage that reimburses a client should a project fall through in the middle. You do have to pay back the amount in question, but you can do so gradually to the carrier. The customer is made whole again immediately which protects your reputation. Plus, for some contracts, you must be bonded to even be considered for the job.

How Much Does Plumbers Insurance Cost?

For general liability insurance for plumbers, we have seen costs ranging from as low as $20 a month to as high as $130 a month. And keep in mind that is just for general liability coverage. If you want to tack on additional types of coverage, that will increase your overall costs to insure your plumbing business.

Here are some additional factors that can impact your plumber insurance quotes:

• Your coverage amounts: You will have options to purchase larger or smaller amounts of coverage. You need to purchase enough to meet the minimum requirements for your license. But beyond that, it is up to you to decide what you are comfortable with. Larger policies are more expensive—though in many cases, they are also worth it.

• Your deductibles: Your coverage amounts are not the only thing you can modify about your policies to change what they cost you monthly. You can also increase or decrease your deductible. The higher your deductible, the lower the cost for your policy each month, but the more you will need to pay out of pocket if you need to make a claim.

• The specific types of work you perform: Not all plumbing work is the same; some types of jobs may entail different risks than others. For that reason, the scope of the work you do will impact how much you need to pay for your insurance.

• Your equipment value: If you will be purchasing a policy to protect your tools and equipment, the value of those tools and equipment will have an effect on the cost for your insurance. The more expensive your tools and equipment are, the more you will pay for the policy that protects them. The same goes for covering your commercial vehicle.

• Your geographical area: Where you work has an impact on the risks you face each day, so it will also have an influence on the cost for plumbing insurance. Being a plumber in a dangerous part of an inner city may entail more risk, for example, than working on suburban homes.

• Your payroll: Do you have one or more employees? Then you will need to pay for workers’ comp. The higher the amount of your payroll, the more expensive workers’ compensation will be.

• Your claims history: Plumbers who have a history of making repeated claims do not make a good impression on carriers. These plumbers may just be unlucky, but then again, they could be doing business in a risky way. Carriers will assume the latter, and charge accordingly. Keep your claims history clean if you want to get the best pricing for plumbers insurance policies.

• Your experience: If you already have been doing plumbing work for years—even if you have not been operating your own business—that may help you qualify for lower insurance costs than if you are completely new to the world of plumbing.

• Bundling and discounts: Try bundling more than one policy with the same carrier to qualify for a discount. Ask if there are any other discounts for plumbing insurance.

• Underwriting: Insurance carriers are in the business of assessing risk, and each one does it in their own unique way. Those underwriting guideline variations lead to variations in pricing from carrier to carrier. That is why even though you are giving the same information to every company, you might receive more competitive quotes from one company than another. The key to getting the best prices is to shop around until you find the lowest offer.

Where to Get Quotes for Plumbers Insurance

You have a strong understanding now of the factors that can impact the cost for plumbers insurance. So, where should you go to find the most competitive pricing on the best policies? Below, we share a few top carriers with you for plumbers insurance.

1. The Hartford

The Hartford is an insurance company that has been around even longer than Hiscox; it has been in operation for over two centuries now.

It is easy to customize your insurance through The Hartford since they have such a wide spectrum of policy types. Plus, their customer support is fantastic, which is one of the reasons they consistently receive high ratings for customer satisfaction.

2. Progressive

Progressive is best known for their home and auto policies, but they also provide quality policies to small businesses, including plumbers. In fact, they might be an ideal option if you already have personal policies with them and want to do some bundling. They offer handy digital tools for managing your policies, and tend to be pretty affordable.

3. Hiscox

For more than a hundred years, Hiscox has been focusing on providing small business insurance. Plumbers are among the professionals they insure.

Some reasons to choose Hiscox include their extensive specialized experience insuring plumbers, their flexible options for payment, their policies tailored to standard contract requirements, and the fact that you are covered all around the world by your policies.

Get Plumbing Insurance for Your Business Now

Now that you know about the different types of insurance for plumbers and are familiar with a few top carriers, you are ready to pick out the policies you need to obtain or maintain your license and protect your business. To get fast quotes for plumbers insurance, call or complete our easy form below.