Life Insurance For Plumbers: Is It Possible?

Life insurance for plumbers is a subcategory of business insurance that safeguards plumbers from financial losses resulting from accidents, injuries, property damage, and legal fees. While plumbers are generally eligible for standard life insurance terms, certain factors, such as working at heights over 40 feet or outside the UK, may require specialised insurers. Plumbers can also consider additional coverages like critical illness and income protection insurance to safeguard their finances in the event of illness or injury. Understanding the specific risks associated with plumbing work and consulting expert advisers are crucial steps in obtaining appropriate life insurance.

What types of insurance can a plumbing contractor use?

Plumbing contractors face various risks in their day-to-day work, including causing accidental damage to a customer's property, equipment damage, and injuries to themselves and their clients. Therefore, it is essential for plumbing contractors to have insurance to protect their business and themselves. Here are some types of insurance that a plumbing contractor can use:

• Business Owners Policy (BOP): This is the foundation of a solid insurance plan and combines liability and property damage coverages. It is typically cheaper to purchase a BOP than to buy each coverage separately.
• General Liability Insurance: This type of insurance is crucial for plumbing contractors as it covers third-party accidents, property damage, and bodily injury claims. It can also help cover legal fees if a lawsuit arises.
• Commercial Property Insurance: This type of insurance covers the plumbing business's location and equipment if they are stolen, destroyed, or damaged due to a covered event, such as a fire or tornado. It covers both owned and leased equipment, furniture, tools, inventory, supplies, computers, and business documents.
• Business Income Insurance: Also known as business interruption insurance, this coverage helps replace lost income if the plumbing business has to temporarily shut down due to a covered event, such as wind damage, theft, or fire.
• Commercial Auto Insurance: If a vehicle is used for the plumbing business, commercial auto insurance is necessary. It covers liability, collision, comprehensive, uninsured or underinsured motorist claims, and personal injury protection or medical payments.
• Equipment Floater Insurance: This type of insurance covers specialised tools and equipment, such as wrenches or pipe cutters, no matter where the business travels.
• Materials Floater Insurance: Similar to equipment floater insurance, this covers pipes, sinks, toilets, and other materials meant to be installed on the job, whether stored off-site or on-site.
• Professional Liability Insurance: If a plumbing contractor creates drawings or blueprints for plumbing configurations, professional liability insurance protects them if those designs are faulty.
• Workers' Compensation Insurance: This type of insurance covers medical expenses and lost wages for employees who are injured or become ill on the job. It is required in most states, especially if the business has employees.

These are some of the main types of insurance that a plumbing contractor can use to protect their business and themselves from potential risks and financial losses.

Why do plumbers purchase insurance?

Plumbers purchase insurance to protect their business, employees, and customers. Plumbers are at a high risk of causing property damage, and the average claim for property damage for small businesses is $30,000. Insurance can also help plumbers obtain their plumbing license, as many states require proof of a general liability insurance policy.

Plumbers' insurance covers a range of risks associated with the plumbing trade, including accidental injuries, third-party property damage, claims of negligence, and protection against theft or damage to essential tools.

• General Liability Insurance (GL): This covers claims associated with third-party accidents, property damage, and bodily injury. GL can also cover the costs resulting from those claims, meaning your business will take less of a financial hit.
• Workers' Compensation Insurance: If your business has employees, you may be required by federal law to have workers' compensation insurance. This policy covers the financial costs if one of your employees gets injured or becomes sick while working for you. It also prevents the employee from suing you for their injuries.
• Commercial Auto Insurance: If you have a work vehicle, you may need commercial auto insurance to protect your business from liabilities arising from your work vehicles, such as at-fault accidents. It can also cover the vehicle if it is damaged or stolen.
• Contractors Equipment Insurance: Plumbers often have expensive equipment and tools that they need to run their business. A contractors equipment policy covers the loss of or damage to these items, whether due to an accident or theft.
• Public Liability Insurance: This covers you if a claim is made by a member of the public against you or your business if they are injured, hurt, or emotionally harmed during your work. It also covers damage to a customer's property or home while carrying out your services.
• Personal Accident and Sickness Insurance: If you are unable to work due to injury or illness, this insurance provides a payout to cover your lost income.
• Employer's Liability Insurance: If you hire someone, even temporarily, you are legally required to have employer's liability insurance. This covers claims from employees who suffer work-related injuries or illnesses.

What is plumber's insurance?

Plumbers insurance is a form of business insurance that protects plumbing businesses from financial losses in the event of accidents, injuries, property damage, lawsuits, and other liabilities. It is designed to cover the specific risks that plumbers face in their day-to-day work, such as accidentally damaging a client's property. Plumbers insurance typically includes general liability insurance, which covers third-party accidents, property damage, and bodily injury. It can also include other types of coverage, such as professional liability insurance, commercial auto insurance, and workers' compensation insurance, depending on the needs and risks of the business.

General liability insurance is often required for plumbers to obtain their plumbing license and can also be necessary to start work on a project, as clients may ask for proof of insurance. This type of insurance covers accidents, such as a client tripping over plumbing equipment and injuring themselves, as well as property damage, such as water damage caused by a leaking pipe. It also covers legal fees and judgments if a client files a lawsuit against the plumbing business.

Professional liability insurance, also known as errors and omissions (E&O) insurance, covers accusations of professional negligence, errors, or failures to deliver a service on time. For example, if a plumber is accused of installing the wrong type of bathtub, this insurance would cover the legal and settlement costs associated with the resulting lawsuit.

Commercial auto insurance is important for plumbers who use their vehicles for business purposes, as personal auto insurance usually does not cover business-related activities. This type of insurance covers accident-related expenses, including injuries, death, and property damage.

Workers' compensation insurance is required by law in most states and provides coverage for medical expenses and lost wages for employees who are injured or become ill while on the job.

Other types of coverage that may be included in plumbers insurance are business property insurance, which covers damage to the business's property and equipment, and tools and equipment insurance, which covers the cost of repairing or replacing stolen or damaged equipment.

The cost of plumbers insurance varies depending on factors such as the number of employees, the nature of the plumbing work, and the location of the business. Bundling multiple types of insurance into a business owner's policy (BOP) can often result in a discount.

How much does plumbing insurance cost?

The cost of plumbing insurance varies depending on the type of insurance, coverage limits, deductibles, and other factors such as the business's location and number of employees. Here is a breakdown of the average monthly and annual costs for different types of plumbing insurance policies:

• General liability insurance: This policy covers accidents, property damage, and bodily injury claims. The average cost is $115 per month or $1,378 per year.
• Business owner's policy (BOP): BOP is a package that includes general liability insurance and commercial property insurance. It is only available to small, low-risk businesses and has an average cost of $166 per month or $1,992 per year.
• Workers' compensation insurance: This policy covers medical costs and lawsuits related to workplace injuries. The average cost is $195 per month or $2,337 per year.
• Commercial auto insurance: This policy is required for vehicles owned by a business and covers property damage, medical bills, and legal costs. The average cost is $225 per month or $2,704 per year.
• Contractor's tools and equipment insurance: This policy covers loss, theft, or damage to plumbing tools and equipment. The average cost is $19 per month or $224 per year for coverage of up to $10,000.
• Professional liability insurance: This policy covers legal fees related to professional negligence. The average cost is $74 per month or $886 per year.
• Commercial umbrella insurance: This policy boosts the limits of underlying insurance policies such as general liability and commercial auto. The average cost is $250 per month or $3,000 per year.
• Surety bonds: Surety bonds reimburse clients if the plumber is unable to fulfill a contract. The average cost is $8 per month or $100 per year.

It's important to note that these costs can vary based on factors such as the size of the business, the number of employees, the state, and the specific coverage limits chosen. Additionally, some policies may be mandatory depending on the state and local regulations.

How do I get plumbing insurance?

Plumbing insurance is essential for protecting your business and can even be required by law, depending on your location and the type of work you do. Here's a step-by-step guide on how to get plumbing insurance:

• Determine your insurance needs: The first step is to identify the specific risks and liabilities associated with your plumbing business. This includes considering factors such as the size of your business, the type of work you perform, the number of employees, and the value of your tools and equipment. By understanding your unique needs, you can tailor your insurance coverage accordingly.
• Research insurance providers: Look for reputable insurance companies that specialise in providing coverage for plumbing businesses. Compare multiple providers to find the best fit in terms of coverage options, pricing, and customer service. You can also seek recommendations from industry peers or consult with an independent insurance broker.
• Obtain quotes: Contact your shortlisted insurance providers and request quotes for the coverage types you require. Be sure to provide detailed information about your business, including annual revenue estimates and any previous insurance claims. This will help ensure that the quotes you receive are accurate and tailored to your specific needs.
• Compare policies and select a provider: Once you have received quotes, carefully compare the coverage options, limits, deductibles, and premiums offered by each insurance provider. Consider seeking assistance from an insurance broker or agent to help you navigate the different options and choose the most suitable policy for your plumbing business.
• Purchase the policy: After deciding on the insurance provider and policy that best meets your needs, finalise the purchase by paying the required premium. Make sure you carefully review the terms and conditions of the policy before committing.
• Maintain and review your insurance: Plumbing insurance needs may change over time as your business evolves. Remember to review your insurance coverage periodically to ensure it remains up-to-date and adequate for your business requirements. Don't hesitate to reach out to your insurance provider or broker if you have any questions or concerns about your policy.

By following these steps, you can obtain plumbing insurance that provides the necessary protection for your business, giving you peace of mind and allowing you to focus on serving your customers.

Frequently asked questions