Whether you’re a master plumber, a plumbing contractor, or a home renovator, your business faces several risk exposures.

Regardless of whether you’re working in a client’s home, an office building, or an industrial complex, you’re dealing with water line installation, repair, and replacement — so hazards are just part of the job.

And no matter how careful you are, accidents do happen. So, if a pipe bursts and damages a client’s hardware flooring — or the client slips on the wet floor and hurts their back — you could be on the hook for thousands of dollars in damages.

But accidental damage is only one of many risks that plumbers face — and that’s why insurance for plumbers goes much further than a general insurance policy.

Why do plumbers need insurance?

Insurance in general is important to protect your business, but it is also a requirement by law in many provinces, including Ontario, Alberta, and British Columbia. If you’re a subcontractor, many general contractors will ask to see proof of insurance before hiring you, and some government or institutional contractors will require mandatory professional liability insurance.

But you also want to make sure you have the right coverages to protect every aspect of your business.

As a plumber, you spend most of your time working at jobsites. A commercial general liability (CGL) policy provides a solid foundation for your insurance needs since it’s designed to protect your business if you’re found legally liable for bodily injury or property damage to a third party. But a CGL policy alone won’t cover all your risk exposures.

For example, if a client accuses you of negligence that caused them a financial loss — or claims that you failed to deliver services as promised — they could sue you for professional negligence, even long after you’ve completed the job. So, if a leak inside a wall results in mold and causes health issues several months or years later, that client could still take you to court.

One of the biggest plumber risks, however, is theft or loss of tools, equipment, and inventory (such as piping). If any of these items are stolen from a jobsite or your company van, then you’re responsible for replacing them. But you’ll also need to deal with the interruption to your business, which can be costly.

The same applies if a fire breaks out where you store your tools, equipment, and inventory, or if your specialized equipment breaks down — such as plumbing torches, snake machines, and press fitting systems — and you’re unable to replace or repair it in a timely manner. These types of business interruptions can leave you without a salary while you’re trying to get your business back up and running, which can take days or weeks.

If you manage a plumbing business, you’re also at risk of worker injuries on the job. Your workers likely work in tight spaces and perform repetitive tasks that require lifting and twisting, which can result in sprains, strains, and other injuries. They could also be exposed to hazardous substances such as mold, solvents, and asbestos, or even biohazards if working on sewage lines. If one of your workers is injured on the job, you could be held liable.

What type of insurance do plumbers need?

Commercial general liability (CGL) insurance provides a solid foundation to protect your business. But plumbing insurance includes a variety of additional coverages that are worth considering:

Property liability

If your office or warehouse suffers a loss from theft, vandalism, or a natural disaster, property liability insurance can help you get back on your feet faster.

Professional liability

Long after you’ve completed a job, a former client could still sue you for damages, claiming that your advice, negligence, or faulty work resulted in personal or property damage.

Commercial auto

Whether you have one van or a fleet of vans, if a vehicle breaks down or is damaged in an accident, it could impact your ability to get to jobsites.

Equipment breakdown

If an essential piece of equipment is broken or damaged, it could be costly to repair or replace, and there could be a long lead time for repair or replacement.

Tool theft

Tools left inside trucks or vans — even while you’re on an emergency call in the middle of the night — make you a target for thieves.

Cyber risk

If you store sensitive data such as credit card numbers on your computer, you’re a target for cybercriminals who use malware, ransomware, and social engineering attacks.

Risk management tips for plumbers

  • Do a safety check on the jobsite before work begins and after work is complete.
  • Make sure your crew has the appropriate personal protective equipment.
  • Avoid trip hazards by keeping your jobsite clean and tidy.
  • Replace any tools that are worn out as soon as possible.
  • Remove or lock up tools and equipment from the jobsite at the end of the day.
  • Don’t leave tools or equipment in your vehicle overnight.
  • Track inventory being used on each jobsite.
  • Protect your computer systems with anti-malware.
  • Train employees to recognize phishing scams and other social engineering techniques.
  • Make sure you have the right insurance coverage for your plumbing business.

Keep your business safe with plumbers insurance

Unfortunately, you can’t always control what happens to your business. You can, however, control how prepared you are. Having the right protection in place can make a huge difference. To learn more, visit our plumbers insurance page today.

 

 

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. Terms, conditions and exclusions apply to coverage. See policy for details.