What Insurance Do I Need as a Plumber?

Whether you own a plumbing business or work as an independent contractor, you face unique risks in your profession. It’s why, when determining your operating expenses, you cannot ignore the importance of having the proper insurance to protect you and your business from those risks.

One of the most important types of insurance to consider is liability protection, which may help protect you from financial damages for which you’re responsible.

There are many other business insurance products you may need, depending on the extent of your operations. To help ensure that you are fully protected, you may want to consider the following types of insurance:

• Business income
  Provides protection for lost net income; mortgage, rent, and lease payments; loan payments; taxes; and employee payroll. It requires that the damages be caused by a covered loss resulting in physical damage to the property.

• Businessowners policy (BOP)
  Combines property, liability, and business interruption coverages for small- to medium-sized businesses. Coverage is generally less expensive than if purchased through separate insurance policies. A BOP may also provide coverage for your tools and small equipment.

• Commercial auto
  You need a vehicle to transport your tools and equipment to jobsites. Commercial auto insurance covers the cost to repair or replace vehicles (less depreciation) in the event of an accident, as well as the cost to rent a replacement auto so that your business can continue operating. It also covers your liability arising from an accident in your business vehicle (which may also be covered under your personal automobile insurance policy).

• General liability
  Insures against the liability exposures of many businesses. Coverage can include product liability, completed operations, premises and operations, and independent contractors. This coverage is best obtained through a BOP, which includes other essential coverages for small businesses.

• Commercial excess and umbrella
  Provides greater financial protection by increasing the liability limits of certain underlying policies and, in some instances, provides coverage for certain risks not covered under your underlying policies.

• Employment practices liability
  Coverage for wrongful termination, discrimination, and other violations of employees’ legal rights.

• Errors and omissions
  A professional liability policy protecting the policyholder against negligent acts and omissions that may harm their clients.

• Workers’ compensation
  Pays for medical care and physical rehabilitation of injured workers and helps to replace a portion of lost wages while they are unable to work. Your insurance company may also provide resources designed to assist plumbers in developing safe working habits to help control insurance costs.

If you’re working for a builder or another contractor, you will likely be required to have additional coverage. The two most common are additional insured and waiver of subrogation endorsements.

Before deciding which policies are best for your business, be sure to contact a licensed business insurance broker or agent, who can provide more detailed information, help solicit quotes from insurers, and answer any questions you have. An independent agent can help business owners understand which products can best meet their needs.