The plumbing business is often underestimated. Most people think that it is a safe business and nothing can go wrong with it. The need for insurance for plumbers has always been questioned. However, every business has its own risks and liabilities and plumbing business is no exception. There can be incidences where a plumber gets injured while working, some damage is caused to the property while fitting the pipelines, you may get sued by some client or even employees for financial disagreements. Several situations can be stated where insurance can be instrumental in paying your liabilities without causing much financial load to your business. Here are some common risks that are associated with the plumbing business where the insurance can lend significant help.
- Commercial risks
Damage caused at the worksite is the most expensive risk that a plumbing business faces. It refers to a situation where the property owner (third party) claims for remuneration or sue you for the damage caused to his/her property. The specifications of commercial property are sometimes tricky. It is important to know that such policies only cover the damage caused to the property. Any work that was completed before the incident has to be redone by you and the insurance company does not cover that. Consider your business liabilities, upfront cost, conditions and deductibles, and policy limits before putting your money on any insurance plan.
- Loss of equipment and inventory
Frequent events of loss of tools and equipment from the worksite have been observed. This makes it necessary for plumbers to invest in tools and equipment coverage insurance plans. These plans provide coverage for loss or theft of tools from a worksite, your company’s premises, vehicles, and storage trailers as well. The plans offer coverage for tools stolen or lost from worksite until the installation work is complete. You should understand the policy limits as these are often lesser than the actual cost of the tools.
- Commercial auto liability
Vehicles are used to reach various worksites and transport equipment and fixtures. People in the present day and age prefer stylish, sophisticated, and high-quality fixtures which are quite expensive. It is advisable to get the transport of such material insured. Some insurance providers allow you to combine auto liability with commercial liability. This is highly profitable as single deductible applies and you get to benefit in premium calculations as well.
- Error and Omission (E&O)
Mistakes and errors are inevitable. These can happen anywhere by anybody. While minor errors are easily corrected and do not create much agitation, some major errors, often considered as professional negligence, can put you in big troubles. This is where the E&O insurance kicks in and accords payback to the client.
- General lawsuits
It is common for people to file lawsuits against professional companies. Some lawsuits are substantial while others are frivolous. In either case, these cases cost a significant amount. Insurance policies addressing lawsuits protect whether or not your company does what it is summoned for. It includes payment for damage caused, attorney fees, and other costs related to the suit.