Search for insurance help
Understanding Plumbers Insurance: What You Need to Know
General Insurance
Business Insurance
Commercial Motor Fleet Insurance
Public Liability Insurance
General Insurance
Business Insurance
Commercial Motor Fleet Insurance
Public Liability Insurance
Tradies Insurance
Plumbers Insurance
Tradies Insurance
Plumbers Insurance
As a plumber, insurance is an important part of your business, in most cases insurance gives you the security to grow your business and take on risk without complications causing disruptions to your business. When running a business there are many risks involved and as a trade, making sure you're covered will keep you safe from costly problems that could occur. When looking for an appropriate plumbers insurance package there are a number of different components that you should consider.
Here's a simple guide to the most important types of insurance for plumbers, and answers to some of the common questions plumbers ask.
Here's a simple guide to the most important types of insurance for plumbers, and answers to some of the common questions plumbers ask.
1. Public Liability Insurance
Public liability insurance is one of the most important types of cover for plumbers. This insurance protects you if you accidentally cause injury to someone or damage their property while working. For instance, if a pipe you install bursts and floods the client’s home, this insurance will cover the costs. It’s essential because even small accidents can result in huge bills for repairs, legal fees, and other losses.
FAQ: How much public liability cover do I need? The amount of cover you need depends on the size of your business. Typically, most plumbers take out between $5 million and $20 million of cover, depending on the contracts they work on. For example, a domestic plumber who is just starting out with small residential contract may just consider $5 million of public liability cover whereas a civil plumbing and drainage contractor doing apartment complex connections would generally get a higher limit.
FAQ: What are some common exclusions to look out for? Some exclusions that we typically see in the plumbing industry are restrictions on internal and external height work, weakening of support exclusions for excavations around fixed property and also larger excesses for worker to worker (injury to sub-contractor claims)
FAQ: What are some common exclusions to look out for? Some exclusions that we typically see in the plumbing industry are restrictions on internal and external height work, weakening of support exclusions for excavations around fixed property and also larger excesses for worker to worker (injury to sub-contractor claims)
2. Tool and Equipment Insurance
Your tools are your bread and butter, they allow you to perform the work that you are engaged to do. If they’re stolen, damaged, or lost, it can put your work on hold. Tool insurance covers the cost of replacing or repairing essential gear. Many policies even cover tools stolen from your van, as long as there’s proof of forcible entry, this shows proof to the insurer that they were secure at the time.
FAQ: What if my tools are stolen from my ute? Most insurance policies will cover tools stolen from a locked vehicle, but they require proof of forced entry. It’s always a good idea to secure your gear with a quality lock and park in well-lit areas and avoid street parking if possible overnight.
3. Workers’ Compensation
If you’ve got employees, workers’ compensation is mandatory. It covers your employees’ medical expenses, rehabilitation costs, and lost wages if they’re injured on the job. This ensures that both you and your workers are protected if something goes wrong while they’re working for you. Depending on your state, these policies can be put in place by a broker or in some states you will have to contact the relevant governing body.
If you’ve got employees, workers’ compensation is mandatory. It covers your employees’ medical expenses, rehabilitation costs, and lost wages if they’re injured on the job. This ensures that both you and your workers are protected if something goes wrong while they’re working for you. Depending on your state, these policies can be put in place by a broker or in some states you will have to contact the relevant governing body.
QUESTIONS? JUST ASK
Daniel Ufer
FAQ: Do I need workers’ comp as a sole trader? No, sole traders generally aren't eligible for workers' compensation cover for themselves. However, if you hire employees, you’ll need to have it in place to cover them, this can also apply to sub-contractors as well.
4. Professional Indemnity Insurance
Professional indemnity insurance protects you if a client claims they’ve suffered a financial loss due to an error or omission in your work. For example, if your professional advice leads to a major water damage issue, professional indemnity insurance covers legal costs and damages.
FAQ: When should I consider professional indemnity insurance? If your work involves offering advice or specialized services, like consulting on plumbing systems, this insurance is a good idea. It’s not always needed for general plumbers, but it’s valuable if you provide expert opinions or designs.
5. Personal Accident and Illness Insurance
What happens if you get injured or sick and can’t work for a while? Personal accident and illness insurance covers your income if you’re unable to work. This is particularly important for sole traders who rely on their income to keep their business and household running. This is usually considered by sole traders who don't qualify for the traditional workers compensation cover.
FAQ: Does this cover pre-existing conditions? Most policies won’t cover pre-existing medical conditions, so it’s important to check the fine print. If you have a condition that could affect your ability to work, you may want to discuss options with your insurer.
6. Other Optional Add-Ons
Some insurers offer optional add-ons that can be useful depending on your business. These can include:
- Trailer Insurance: If you transport tools or equipment in a trailer, this insurance covers it against theft or damage.
- Cyber Insurance: This is becoming more common as businesses handle more data online. It protects you if your systems or data are hacked.
- Office Insurance: If you have an office space, this will cover things like office equipment, computers, and furniture.
How to Choose the Right Plumbers Insurance
Choosing the right insurance comes down to the specifics of your business. Are you a sole trader or do you have staff? Do you work in high-risk environments like multi-story buildings or commercial projects? Here are a few tips to help you:
- Be open with your insurer about the type of work you do. Some policies won’t cover certain high-risk jobs, like plumbing work in skyscrapers or underground.
- Compare policies and see what fits your business size and needs. Some insurers specialize in tradies and offer tailored packages for plumbers.
QUESTIONS? JUST ASK
Daniel Ufer
Common Questions from Plumbers About Insurance:
Do I need public liability insurance if I’m working as a subcontractor? Yes, even if you’re subcontracting, you need to have your own public liability insurance. The principal contractor’s insurance may not cover you if something goes wrong on-site.
What is the difference between tool insurance and general property insurance? Tool insurance and general property can be used interchangeably yet both follow similar protocols. General property can include tools cover but could also include other things like diagnostic tools, specialist equipment and other pieces of machinery.
Do I need professional indemnity insurance for general plumbing work? Generally, no. Professional indemnity is more for those offering specialized advice or consulting. But if your plumbing work involves giving advice on complex installations, it might be worth considering.
Wrapping Up
Plumbers face unique risks, from water damage claims to the theft of valuable tools. Understanding the different types of insurance available can make sure you’re protected and able to focus on your work. Whether you're a sole trader or manage a team, having the right cover in place keeps you and your business safe.
If you would like to discuss more options that are available to your business or you would like to speak to an insurance broker in brisbane, sydney or melbourne, reach out to the team at Priority Insurance Brokers.
If you would like to discuss more options that are available to your business or you would like to speak to an insurance broker in brisbane, sydney or melbourne, reach out to the team at Priority Insurance Brokers.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
All information above has been provided by the author.
Daniel Ufer, Priority Insurance Brokers, ABN 95 655 563 616, AFSL 233750
QUESTIONS? JUST ASK
Log in with Google
