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Understanding the Insurance Needs of a Small Plumbing Business

A small plumbing business has many of the same insurance needs as other types of service-based businesses. Protecting your employees and the money you have invested in your business is of the utmost importance. Having the right type of insurance in place will ensure that you and your business have the protection it needs to survive any unfortunate event.

The following are a few types of insurance coverage that you will need for your plumbing business:

General Liability Coverage

A general liability policy provides coverage for many of the most common claims. This can involve someone tripping over one of your tools or if you accidentally break something when working inside someone’s home. General liability coverage is designed to protect you from paying for property damage or medical liability claims out of your own pocket. This is one of the more important types of coverage, considering how liability claims can be quite costly, especially for a small business with few assets.

Fleet Insurance

Plumbers will normally have a van or pickup truck to haul all of their tools and equipment. With a fleet insurance policy, a small business is protected while its employees travel from place to place. This insurance covers the vehicles and any liability pertaining to property damage or medical expenses incurred by a third party if the fleet vehicle is involved in an accident. It will also cover items in the vehicle if an accident occurs. So whether you have two vehicles or ten, fleet insurance provides you with the coverage you need to keep your business moving.

Workers’ Compensation Insurance

Workers’ compensation insurance is mandatory in most states. Even if a business has less than five employees, having a workers’ compensation policy is a must if a business owner wants to protect their company from financial devastation. Some states allow a sole proprietor to sign a waiver stating that they do not want a workers’ compensation policy. However, if they sign the waiver, they must show financial responsibility in another way, such as by buying a health insurance policy or investing in other types of funding.

If you don’t have a workers’ compensation policy and have not signed the waiver, you can be fined according to your state’s laws governing mandatory workers’ compensation insurance.

License Bonds

A bond is a special form of legal agreement wherein the insurer or a third party agrees to pay your clients for damages incurred by them if you fail to execute the project.  Though these are not like your standard insurance policy, they protect your business from financial losses while assuring your clients that the project will be executed as planned.

Bonds are normally purchased for $50,000, $100,000, $500,000, or $1,000,000, depending on the kind of work that you do.

If you own a service-based or contract-style business, you need an insurance policy that is designed to meet your needs. As a plumber, you may experience a variety of unfortunate situations that could prove to be quite costly. Our agents at Artisan Insurance Solutions will work with you to develop a policy that addresses all of your needs. Contact us today to get started!

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