Business Insurance For Plumbers

Compare insurance quotes with Savvy to find the best policy for your plumbing business. 

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, updated on July 17th, 2023       

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We’ve partnered with BizCover to bring you a range of business insurance policies to help you compare them side by side.

As a plumber or plumbing contractor, you already know that one small drip can quickly turn into a flood, which is why it’s vital for plumbers to have good business insurance. Having the right insurance to cover you for a range of eventualities will help you sleep well at night and get on with your work without the worry of possible legal action if things go wrong. 

You can compare quotes for a range of different types of business insurance here with Savvy. Just answer a few simple questions about the work you do and the insurance you need and you’ll have multiple quotes from a range of respected Australian insurers to compare instantly. Use our quick and easy comparison service to make sure you get the best value insurance cover to protect your plumbing business today. 

What types of insurance should I buy for my plumbing business?

There are several types of business insurance you should consider as a plumber, or for your small plumbing business. These include: 

Public liability insurance 

Public liability insurance is a must-have type of insurance for all plumbers and tradies and is compulsory on most building sites. It will also offer you protection if you undertake work directly for the public or if you offer your services as a contractor. It can cover you against claims that you or your work caused injury to a member of the public or accidentally damaged their property. This insurance is available for amounts between $5 million and $20 million, depending on your personal requirements or the level of coverage required by the site you are working on. 

What it covers:  

  • Third-party personal injury claims 
  • Damage to a third party’s property 
  • Legal fees to defend yourself  

General business insurance 

General business insurance may also be worthwhile if you have tools, portable equipment and plumbing spare parts and other stock to protect. Business equipment insurance with portable asset cover is usually offered as part of a business insurance package. This allows you to combine different coverage options into one policy bundle, such as public liability and business theft insurance. Having a package to cover all your business insurance needs can be an easier option than having several different insurance policies, and it can make your life simpler if you do need to make a claim. 

Commercial vehicles aren’t included in a business insurance package, so you may need separate commercial vehicle protection for your work ute. 

What it covers: 

  • Fire, storms, explosions, impacts 
  • Water damage (excluding flooding caused by a river or the sea) 
  • Vandalism and malicious damage 
  • Accidental damage 
  • Theft following forcible entry into locked buildings or vehicles 
  • Theft of equipment which is securely attached to a vehicle with a lock or padlock 
  • A collision which causes damage to your business equipment 
  • Cover for your tools including electronic equipment and other portable equipment such as generators 

Professional indemnity insurance 

Professional indemnity insurance is another form of insurance you may wish to consider as a plumber, depending on the type of work you undertake. It covers you against claims that the advice, recommendations or plumbing service you provided were incorrect or negligent. This type of insurance can offer you protection against many types of claims, including: 

  • giving incorrect advice 
  • a miscalculation or incorrect diagnosis of a plumbing issue 
  • an omission or breach of duty (such as loss of documentation) 
  • engaging in misleading or deceptive conduct 
  • not meeting your client’s expectations (such as failing to meet a deadline) 

Cover starts at $250,000 and goes up to $10 million or more. 

What it covers 

  • Cover for your legal defence costs 
  • Payment of compensation if there’s a successful claim against you 
  • Payment of court-awarded damages to the litigant 
  • Cover for the cost of investigations or disciplinary proceedings 

Personal accident and illness insurance  

Since you rely on your physical fitness to be able to do your job, taking care of your health should be a high priority for all people who earn a living working with their hands. Accident and sickness insurance can provide cover for you if you become sick and are unable to work, with a weekly replacement income available if you can’t work as a result of an accident or injury. 

What it covers: 

  • Loss of income as a result of sickness, injury or accident 

 Optional extras can include: 

  • Death benefits 
  • Disablement benefits 
  • Payment of business expenses during your recovery period 

What isn’t covered under business insurance for a plumber?  

The most common general exclusions include: 

  • Injury to yourself or your employees 
  • Flood damage 
  • Glass breakage 
  • Unlawful activity or criminal negligence 
  • Reckless behaviour or intentional damage 
  • Anything to do with asbestos 
  • The effects of pollution caused by your business activity 

How much does business insurance cost for a plumber? 

There is no set cost for an insurance policy, as each applicant is different and faces unique risks. Many factors influence the cost of business insurance, including the following: 

  • The state you’re in 
  • Whether you live in a rural or urban area 
  • Whether you’re a sole trader, are in a partnership or run a larger business 
  • Your business size and turnover 
  • If you have any employees 
  • Your credit history 
  • Your insurance history 
  • Whether you’ve made an insurance claim in the past five years 

The main factor which will affect the cost of your insurance is the industry you’re in. All businesses in Australia are classified according to the risk their industry poses and are allocated a risk ratio. These ratios are used by insurers to calculate the comparative risk of any one business compared to another. Therefore, the cost of business insurance for one plumber based on the Gold Coast may be similar to the price offered to a plumber in Brisbane. 

You can find out how much business insurance will cost for your plumbing or plumbing contractor work by comparing quotes right here with Savvy. Whether you need insurance for yourself as a qualified plumber or for your business as a tradie or handyman, you’ll be able to find a policy which is perfect for your business needs right here. 

Why do I need business insurance as a plumber?

You worked hard as an apprentice, and in the years following as you built up your skills as a plumber or gas fitter. You may have started your own business and spent years building up a good reputation as well as a loyal customer base. Naturally, you’ll want to protect your business and your reputation if things go wrong. Business insurance is there to offer you protection and the peace of mind that comes with knowing you’ll be more likely to be able to make a claim and carry on if something unexpected happens which is covered by your policy. 

Most small to medium-sized businesses have some contingency funds to fall back on, but they’re rarely sufficient to cover the cost of a major catastrophe. For example, if a water pipe you installed at the top of a block of apartments were to burst and flood the entire building, you could find yourself liable for damage worth millions of dollars. If this happens and you have adequate insurance to protect you, you’ll have a much better chance of recovering and getting back on your feet quickly. 

Types of business insurance

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Frequently asked questions about business insurance for plumbers

Is it cheaper to get a tradie insurance package rather than insure my plumbing tools separately?

Yes – a package of business insurance including tool and public liability insurance will often work out cheaper than taking out several separate policies. Check the maximum claim value for individual tools to make sure all of your tools are adequately covered. 

Is cover for flood damage available under general business insurance policies?

While flood cover is a common exclusion from most business insurance packages, this generally refers to a flood caused by a river or the sea due to a storm or rainfall. A flood caused by a leaking pipe is usually referred to as water damage and will be covered by most general business insurance policies. You can also purchase flood cover as an optional extra. 

What information will I need to make an insurance claim?

The information you should have to hand when you contact your insurance company to make a claim will include: 

  • The name of the policyholder 
  • Your policy number and start date (which can be found on your Certificate of Currency) 
  • A detailed description of the incident (what happened to cause the damage or loss) 
  • Specific dates and times when the incident happened 
  • Contact details of any other parties involved (or witnesses to the event) 
  • Details of your police report number (if a crime took place) 
  • Details of the property lost or damaged (including its age and value) 
  • Your bank details for settling the claim 
Are my business insurance premiums tax-deductible? 

The Australian Taxation Office recognises that having business insurance is a legitimate cost of doing business, so the full cost of your insurance premiums can generally be claimed as a business expense and offset against your income. However, it’s worth seeking independent tax advice to find out what you can and can’t claim in relation to your business insurance. 

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