Necessary Things Every Plumbing Contractor Needs to Know About Insurance
When was the last time you walked into a building devoid of pipes, plumbing, bathrooms, or sinks? Is it safe to say "never"? Plumbing is an integral part of all our daily lives!
Which is why it's valued so much as a business. As of 2013, the plumbing industry was worth a whopping $95 billion! Many of these plumbing businesses are independent, owner-operated franchises and stores.
And as such, they can't afford to not have plumbing insurance. Issues may arise due to the fault of a client or an employee. Accidents happen, and sometimes those accidents can be bank-breaking.
What are the 5 most important things any plumber should know about having insurance? We flush it out - we mean, flesh it out - right here.
1. What Is Plumbing Insurance?
Plumbers, plumbing contractors, and the like, face liabilities every day on the job. Plumbing insurance gives plumbers the protection they need against financial risk. It works in the same way as car or health insurance.
2. What Does it Cover?
Plumbing insurance covers a variety of issues depending on the plan. There are many types of coverage, from a standard policy to a full-fledged umbrella plan.
-General liability insurance protects against standard lawsuits or financial dilemmas that may occur.
-Commercial auto insurance covers vehicles that transport supplies and employees to job sites.
-A business owner's policy protects the building or property of the workplace.
There are options for extra coverage. You must consider worker's comp for any employees as well because of state regulations. Umbrella insurance is extra liability insurance that covers excessive damages.
3. Who Needs It?
Plumbing insurance isn't limited to plumbers and plumbing contractors.
Instead, anyone that deals with remodeling, building, pipe fitting, etc., should consider insurance.
This includes renovators, general contractors, home builders, and so on. It's up to the business owner to determine what insurance is right for their business. Working with an experiences business insurance broker will allow you to build a plan that works for you.
4. What Does It Cost?
The price of your coverage depends on a variety of factors.
What are the needs of your business?
What does your company's history look like? Those with a cleaner history are more likely to get a cheaper price tag. Those with greater liability, or a history, will likely pay more for coverage.
How large is your business? Where is it located? Insurance policies vary state-by-state.
How many vehicles are you insuring, if any? Are you considering a policy that goes behind general liability?
All these factors play a part in determining your final monthly or annual cost.
5. Are There Prerequisites?
Before a plumbing company gets insurance, there is one standard pre-licensing need.
A company must have a license or permit bond before getting insured. Surety Bond Associates in PA describes this as a guarantee that "a business will operate [under] federal, state, or local laws."
If you're taking the steps to get insured, you're already a professional. Having a license bond only solidifies this further!
Don't Let Your Company Go Down the Drain
Protect your livelihood and your company's name with plumbing insurance. There's no question that the benefits far outweigh the cost.
What other types of financial risk could your company be facing? Find out the different types of risks - and how to avoid them - right here.