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