Plumber Insurance

Plumber insurance is to protect your business from the unexpected. Plumbing work involves a range of risks, including potential damage to property, bodily injury, and even legal disputes. That's where plumber’s insurance comes in. This coverage typically includes general liability insurance, which covers costs associated with third-party property damage and bodily injury claims. The industry-standard liability insurance limits for plumbers are usually $1,000,000 per occurrence and $2,000,000 aggregate. Without this coverage, you could face significant financial losses if a claim is made against you. For example, if a pipe you install later bursts and floods a customer's home, you could be held responsible for the damage. Having the proper insurance not only protects your finances, but also your reputation. Here’s a brief overview of essential liability insurance:

Premises Liability: Covers accidents that occur on your business premises.
Products Liability: Protects against claims related to the products you use or install.
Completed Operations: Covers claims arising from your completed work.

General Liability

Tools Coverage

Workers Compensation

Bond

Required Insurance

As a plumber, am I required to have insurance? Yes, you are often required to have insurance, especially liability coverage. State and local jurisdictions frequently mandate this insurance, particularly if you want to obtain a license to operate legally. Additionally, your contracts may require proof of insurance before you can start work on a project. For example, many clients won’t allow you on-site without a certificate of insurance, ensuring that any risks associated with your work are covered. Carrying insurance is not just about meeting legal and contractual requirements; it’s also about providing peace of mind to both you and your clients.

Key Policies:

Business Owner's Policy (BOP):
Coverage: Combines general liability and property insurance.
Importance: Protects against a wide range of risks, including property damage, liability claims, and business interruptions.
Business Auto Insurance:
Coverage: Covers vehicles used for business purposes.
Importance: Essential for plumbers who travel to job sites, as it protects against accidents, theft, and other vehicle-related risks.
Surety Bond:
Coverage: Ensures contract completion if you are unable to fulfill the terms.
Importance: Often required for licensing and contracts, providing assurance to clients that the job will be completed.
Workers Compensation:
Coverage: Provides medical benefits and wage replacement to employees injured on the job.
Importance: Required by law in most states and protects both you and your employees.
Excess Liability Insurance (Umbrella):
Coverage: Provides additional coverage beyond the limits of your primary liability policies.
Importance: Offers extra protection against large claims, ensuring your business remains secure.

Unique Claim Examples for Plumbers

Bodily Injury:
Coverage: A customer trips over your tools and suffers an injury.
Importance: Covers medical costs and potential legal fees.
Property Damage:
Coverage: A pipe installation leads to a significant leak, damaging a client’s home.
Importance: Pays for repairs and any associated losses.
Business Interruption Loss:
Coverage: A fire damages your office, halting operations temporarily.
Importance: Helps cover lost income and ongoing expenses during downtime.
Business Personal Property Loss:
Coverage: Theft of your tools from a job site.
Importance: Replaces stolen items, allowing you to continue working without delay.

How Much is Plumber’s Insurance

The cost of plumber’s insurance varies based on several factors, including the size of your business, location, and claim history. Insurance providers may also consider the number of employees, the types of services you offer, and your annual revenue. Typically, you can expect to pay between $750 and $1,500 annually for a standard policy, but rates can vary widely. We offer tailored plans that match your specific needs, ensuring you get the best coverage at a competitive price.

Plumber Business Insurance FAQ

We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.

Why Do Plumbers Need Insurance?

Plumbing work comes with many risks. For example, an employee could accidentally damage a customer's home, or a worker could get hurt on the job. If your business gets involved in a lawsuit, it could be incredibly expensive. Plumber business insurance can protect you financially if you need to pay for property damages, compensate an injured person, or pay a court-ordered settlement.

How to get a certificate of insurance?

Once you purchase an insurance policy with USA Insurance, we will email your certificate of insurance promptly, often within minutes.

Is Plumber Business Insurance Required?

Plumber business insurance is sometimes required, but the type of coverage required will vary. For example, some states and local municipalities may require general liability insurance for plumbing, contracting, or business licenses. Some landlords may require liability insurance to rent a business location.

In addition, most states require workers' compensation insurance for businesses with more than one employee, and commercial auto insurance is usually a legal requirement for all businesses with work vehicles.

There are several reasons why having it is crucial:

Client Requirements
Protection from Lawsuits
Worker Protection
Protection for Your Tools and Equipment

What to know before buying plumber’s insurance?

Obtain all your insurance requirements from your contractors, subcontractors, vendors, clients, state, or local government office before purchasing this insurance. This ensures all your requirements are addressed.

How to prevent jobsite accidents?

Ensure all work areas are clean and organized, use proper safety gear, regularly maintain tools and equipment, and provide training to employees on safety protocols to prevent jobsite accidents.

How To Get Plumber Business Insurance

There are lots of insurance policies that can be valuable for a plumbing company, and every business has different plumbing insurance needs. Before you purchase a plumber insurance policy, here are some things to consider:

Elect your coverages: Think about what type of insurance you need. For example, a one-man shop doesn't need workers compensation insurance, but if you work with one other person, this business insurance coverage is required.
Choose policy limits: Accidents from common risks happen more often than you think, and they can be very expensive. If you need to file a claim, you want to be sure you have enough coverage.
Decide on a deductible: The higher the deductible, the lower your premium is. But be sure to choose a deductible you could comfortably afford to pay in the event of a claim.
Get a quote: Many insurance companies provide online quotes with different types of coverage. Take advantage of online calculators to see what your premium will be with various levels of coverage. Get quotes from a few different companies so that you can find the best and cheapest coverage for your comprehensive coverage needs.
Speak to us: You probably deal with customers who only call you after they've tried to fix their plumbing problem themselves. It's the same with a business insurance policy. Be one of the smart plumbing professionals and talk to licensed agents who can answer your questions before you buy.