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Insurance for Plumbers

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Frequently Asked Questions

Why do Plumbers need insurance?

Companies in this industry work mainly in plumbing equipment installation and servicing. Plumbing contractors may offer parts and labor services, as well as new work, additions, alterations, maintenance, and repairs.

Plumbing contractors are highly demanded in both residential and commercial buildings. Residents or business owners rely on you to fix their plumbing problems so they can continue with their daily activities. Entering different locations daily opens the window to potential lawsuits, and insurance protects your assets during these times.

What common risks do Plumbers face?

Having no insurance in place puts you at risk for expensive and time-consuming lawsuits. Here is a look at the potential situations that can put you at risk.

  • Property Damage: You work with pipes in tight spots daily. One wrong move can cause a pipe to break and leak water, making you responsible for repairing or replacing any damaged customer property.
  • Auto Accidents: Plumbing contractors drive to job sites. If you cause an accident, you're responsible for damages, injuries, and can be sued. The same is true if one of your plumbers uses a personal vehicle to commute to job sites.
  • Employee Injury: Plumbers work with a variety of tools, and in some cases need to weld or solder pipes. If they hurt or burn themselves, you need to pay their medical expenses and wages for time off work.
  • Theft of Tools: Commercial plumbing contractors often spend days at one job site leaving tools overnight. If your tools are stolen, it is expensive to replace them.
  • Contractor Mistakes: Occasionally mistakes happen on the job. If the pipes, casings, or fittings you install rust over time causing water leaks, you can be held liable for the expensive damages.

Other potential risks include fire damage, unhappy customers refusing to pay for your services and employment-related claims like discrimination.

How much does Plumbers Insurance cost?

Every Plumber or Plumbing Contractor is different, which means costs vary depending on the carrier and plumbing services you offer. Insurance carriers review plumbing experience, time in business, claims history, and whether you provide strictly plumbing or additional services. If you are ready to get a quote today!

Do Plumbers Need Employer' Liability Insurance (EPLI)?

Choosing what insurance policies are necessary for your business can be a troublesome task. While most business owners know that they likely need General Liability, Property, and Workers Compensation insurance, anything above and beyond these three core insurance packages can be a struggle. With that being said, EPLI, or Employment Practices Liability, is an essential coverage for any business that has employees. Often, a business owner will assume they don’t need EPLI if they have never had any HR issues regarding cases involving discrimination. This is just simply not the case. Even small, family-owned businesses can be exposed to an Employment Practices claim.

Additionally, lawsuits for discrimination are on the rise, especially in the workplace. An EPLI policy is going to protect your business from claims alleging discrimination based on sex, age, race, disability, equal pay, national origin, retaliation, and sexual harassment. What’s more, some EPLI policies will also include third party claims. What this means is that if, say, the mailman sexually harasses your employee and they sue you for it, you will, at minimum, have coverage for defense costs. After that, should a settlement or judgment be awarded, you will be covered for that as well. Even if you win the case, legal fees can be astronomical and not an expense you want to take out of your hard-earned money. Outside of that, an average EPLI claim settlement might cost around $218,000. You would be looking at around half a million dollars from one occurrence. It would be a smart financial decision to invest in an Employment Practices Liability insurance policy now, as opposed to paying for it dearly later on in the courtroom.

Do You Need to Insure Your Plumbing Equipment?

As a plumbing contractor, you depend on certain tools and equipment to do your job. If your essential equipment ends up lost, stolen, or damaged, you could find yourself in quite the dilemma, unable to perform your plumbing services and thus severely impacting your income production. As you are well aware, tools and equipment for plumbing work are not cheap, and to have to pay to replace any of it could cost you big money. You can purchase insurance that will replace your tools and equipment if they are lost, stolen, or damaged. After all, paying a little bit up front to have the insurance coverage on all of your expensive plumbing equipment and tools is a great investment if something should happen that would then prevent you from completing your essential work. A sudden halt in your production could open up a whole can of worms, especially if you have a contract with clients to complete their jobs at a certain time.

Another great reason to insure your plumbing equipment is that coverage for borrowed, rented, or leased equipment is also accounted for. Often, if you rent or lease from an equipment company, they will require you to show proof of insurance. If you already have coverage for your own tools and equipment in place, proof of insurance in this case will be extremely simple to produce and cause little issue with getting the tools you need to do your job effectively, efficiently, and correctly.. Additionally, if you have employees, you can often provide coverage for their own tools, if they use them, at a very low cost on your equipment floater policy, which can provide a welcome cost savings for your business.

Are You Ready to Get Covered?

Prefer to speak with a CoverWallet consultant? Call

(646) 844-9933