Help! My pipe just burst! You know you’re going to get that call. You just don’t know when.
Uncertainty and the unexpected are part of every small business. Being ready and able to respond to a customer’s desperate call at 2 a.m. is what a good plumber does. But it’s not always so easy to handle some other unexpected events that may come down the pipe.
This guide will walk you through a few basic insurance coverages, demonstrate how they can protect a plumbing business, and help you choose what you need quickly and easily.
The If-Then Guide to Coverages for Plumbers
General Liability Insurance
If you work in a customer’s home or business and there’s a chance of accidentally damaging property or a customer getting hurt in the process, then you should consider general liability (GL) insurance.
A general liability policy is often the first choice for many small businesses, and for good reason. General liability can cover claims of bodily injury to others or damage to their property. For instance, if a customer trips over your toolbox that you left in a hallway and injures their knee, you could be responsible for the costs of a trip to the ER, medical treatment, and possible rehab. If you have general liability insurance, then those costs could be covered, up to the limits of your policy.
Or what about this: If you accidentally drop a heavy wrench in a porcelain sink, causing damage, then general liability insurance can help cover the repair or replacement costs and any associated legal fees.
General liability also can cover instances of personal or advertising injury, such as claims of stolen ideas, invasion of privacy, libel, slander, and copyright infringement related to advertising.
Business Owner’s Policy (BOP) Insurance
If you want to financially protect an office, warehouse, or other business location, as well as have general liability protection and coverage for your tools, equipment, and inventory, then a business owner’s policy may be for you.
A business owner’s policy is actually a combination of several other policies. It typically includes general liability, commercial property insurance, and business interruption insurance in one package, often at a lower cost than buying those policies separately.
Commercial property insurance protects your owned or rented business space and its contents (office furniture, printers, coffeemakers, and plumbing supplies) from fire, theft, or vandalism. For example, if your business has a fire, this insurance can help cover the cost of repairs and replacing damaged equipment and inventory. If even more bad luck comes your way and a break-in occurs and items are stolen, it could help pay for replacements.
The third part of a BOP is business interruption insurance. If your business is forced to close as the result of a fire (as described above) or another covered incident, this coverage can help compensate for any typical income you may have lost.
Tools and Equipment Insurance
If you have tools, equipment, and materials you use onsite, then you should consider having tools and equipment insurance.
This type of policy is also known as inland marine insurance, and it’s designed to cover theft or damage to your portable tools, equipment, and materials (e.g., pipe cutters, plumbing fixtures, and that wrench that damaged the porcelain sink) from theft or damage, even while they’re in transit.
For example, if your expensive drain camera is stolen from your truck while parked at a jobsite, inland marine insurance can help replace it. The same can be true if equipment is damaged, such as a power auger that rolls off your van as you were moving equipment inside.
Workers’ Compensation Insurance
If you have full- or part-time employees, then you may need workers’ compensation insurance, because nearly every state requires it by law.
Workers’ comp covers medical expenses, lost wages, and rehabilitation costs for employees who get injured or ill on the job. That’s not that uncommon in the trades. It also can financially protect your business from lawsuits that could be filed by an injured worker.
For example, if an employee strains a rotor cuff while working under a sink, then workers’ comp may cover their medical bills and a portion of their lost wages. Or maybe another employee has a bad reaction from exposure to vapors from PVC cement. The required treatment, and missed wages could be covered by your workers’ comp policy, too.
If you’re the one who does it all for your business, this coverage can provide workers’ comp benefits if an accident or an injury puts you out of action. You can find out more here.
Errors and Omissions Insurance
If you’re accused of an error, oversight, or poor performance by a customer (even if you’ve done nothing wrong), then this insurance can help cover claims and legal costs to defend yourself.
Errors and omissions (E&O) insurance is also known as professional liability insurance. It’s designed to protect you against the cost of mistakes, claims of unsatisfactory work, or not fulfilling a contract.
If you incorrectly install a water heater, leading to a significant leak that damages the client’s property, then professional liability can cover legal defense costs and potential damages. Or if a client claims your advice on a plumbing system upgrade led to unexpected costs or system failure, then professional liability can pay for your legal expenses and any claims you may have to pay.
The Certainty of Uncertainty
Unforeseen events and bad luck can seem as certain as water running downhill. While these challenges can be daunting, securing your business financially doesn’t have to add to your worries, that is, if you have the right insurance.
The Assurance of Insurance
That’s where we come in. We’ve insured more than 1 million small businesses worldwide. We know how much owners like you value the peace of mind the right coverage can provide. We also know how to take the hassle, confusion, and time commitment out of the insurance buying process.
With just one online form and 10 minutes of your day, we can help find the coverages you need from trusted insurers who specialize in protecting small businesses such as yours. You may choose what works best for you and your business. In fact, you can get started right now, right here. We’re certain about that.
Looking for more information about business insurance? We specialize in that, too. Here is some information we recommend:
Essential Plumbing Business Expenses You Can Write Off for Tax Savings
A Helpful Guide to Workers’ Comp Insurance for the Self-Employed