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Plumbers Business Insurance

Plumbers Insurance

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Plumbing businesses can be affected by many risks, including the possibility of employees accidentally breaking a valuable item at a client’s home, causing someone else to be injured, or injuring themselves. Coping with these and other potential hazards can consume a large portion of your resources. This is why it’s a good idea to obtain a broad range of insurance policies to financially protect your company. 

What insurance coverage do I need for my plumbing business?

There are many types of insurance coverage to consider, but these policies are particularly relevant to plumbing companies:

General Liability Insurance

General liability insurance covers accidental damage or injury to third parties and third-party property—an important concern for plumbers, who typically perform work at a variety of locations. No matter how careful your employees are, there’s always a chance that they could unintentionally damage someone else’s property or cause an injury, and your company could be sued for damages if that happens. General liability insurance can provide funds to cover legal fees, judgments, settlements, and medical payments. General liability also includes a personal and advertising injury component, which provides coverage for a number of non-physical injuries, including libel, slander, and copyright infringement.

A critical part of general liability insurance for plumbers is the products and completed operations component. This covers property damage or injuries that take place away from your business’s premises and are caused by your work after it has been completed. However, it’s important to note that products and completed operations coverage does not cover damage to your product or completed work itself; it only applies if the completed work causes damage to a customer’s other property.


Commercial Property Insurance

Commercial property insurance will protect the value of your business property if it is destroyed or damaged. If an unexpected disaster strikes your office building or damages your equipment, it can be time-consuming and costly to recover from the loss without insurance coverage. Commercial property insurance can help provide funds to replace or repair damaged business property, including tools, supplies, signage, and more. Commonly covered perils include windstorms, hail, fire, vandalism, explosion, and water damage.

Commercial property insurance covers the following:


Commercial Auto Insurance

If your business owns or leases vehicles titled under the business’s name, commercial auto insurance is a key coverage to secure. If one of your employees is driving a company vehicle and causes an accident, your commercial auto insurance will pay for any resulting third-party bodily injury, property damage, or pollution cleanup. Commercial auto insurance also covers the value of the vehicle itself if it’s damaged by a collision or another peril, like a falling object or theft.

If your employees drive their own vehicles to clients’ locations, you may need to add hired and non-owned auto insurance. This coverage will protect your company if an employee is at fault in an accident while driving a personal vehicle for work purposes. 


Inland Marine Insurance

Inland marine insurance provides financial protection for your business property that does not remain at a fixed location and is not covered by a standard commercial property insurance policy. This could include equipment, tools, supplies, and other items that a company may need to transport from location to location or store at client sites. Plumbers regularly use a wide variety of specialized equipment and tools in the course of their work, from motorized drain snakes to soldering and caulking equipment. Inland marine insurance covers the equipment your plumbers take with them to perform their work. 


Workers’ Compensation Insurance

Workers’ compensation insurance is legally required in almost all states, and it’s particularly crucial coverage for plumbing companies. The physical nature of plumbing can lead to injuries, and no matter how careful your employees are, accidents can happen. In the event of a work-related injury or illness, workers’ comp will provide funds for employees’ medical expenses and a portion of lost income if they are unable to earn their usual wages. Workers’ comp also provides financial benefits to surviving dependents if an employee dies in a work-related accident.


Commercial Crime Insurance

Commercial crime insurance provides funds to reimburse you for losses caused by theft, robbery, fraud, forgery, burglary, and other crimes. This coverage applies both to crimes committed by outside parties and crimes committed by your own employees. Your business may own valuable equipment that may be left at worksites, and plumbing companies could be targeted for theft by employees or others. There is also a risk that employees could commit fraud. Commercial crime insurance can give you financial protection if your business suffers losses due to a variety of crimes. 


Additional Coverages

Pricing and Quotes

Pricing for plumbing insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a plumbing business with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for plumbers:

ProviderGeneral LiabilityBusiness Owner's PolicyProduct Liability

Final Word

When you run a plumbing business, it’s important to consider purchasing insurance coverage that will provide financial protection from the many risks that could arise in the course of your work. If an unexpected disaster occurs, whether it’s a costly auto accident, an injury caused by your work, or a fire, recovering can be difficult and costly. Insurance coverage can give you, your employees, and your clients peace of mind and help your company continue to operate in these situations.

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