Why does my Plumbing Business Need General Liability Insurance?
Photo of a plumber by Boise Plumbing/Flickr
For Insurance Purposes What is a Plumbing Contractor?
A plumbing contractor is an individual or company licensed and trained to handle plumbing tasks involving a water supply or septic system. Plumbing contractors work on new construction, existing homes, renovations, and remodeling projects.
Plumbing Contractors may work on a variety of projects that may include bathrooms, kitchens, and water heaters. This work may involve general repairs, but also more complex jobs as well.
General Liability Insurance for Plumbing Contractors
Plumbing contractors have many hazards or risks when working on a residential or commercial job. Damages to customers’ property can happen by accident or negligence by one of your employees. The best way to protect your business is with General Liability Insurance.
General Liability Insurance protects your business against the following during the course of operating your business:
- Bodily Injury – Customer trips over a pipe or a piece of equipment you are installing at their home or business causing injury.
- Property Damage – An employee drops a tool on an expensive bathroom tile and causes it to crack.
- Medical Payments – Customer is injured at their property due to work you performed or are performing resulting in medical expenses.
- Personal and Advertising Injury – Another business claims you have said something that is not true and is damaging about them in your marketing materials.
- Damage to Premises Rented to You – One of your employees causes a fire at the office your business currently rents.
- Products Completed Operations – A month after your employee repairs a plumbing issue, the work of your employee fails causing water damage to the customer’s flooring.
What Does General Liability Insurance Not Cover for Plumbing Contractors
A General Liability Insurance Policy can protect your Plumbing business in many ways. However, a General Liability Policy does not provide coverage for everything. It is important to know what is not covered.
- Employee Injury – An employee gets injured while replacing kitchen disposal. The employee’s injury would be covered under a plumbing contractor’s workers compensation policy.
- Auto Accidents – Employee runs into the back of another vehicle while driving to a jobsite. The damage and injuries caused by the auto accident would be covered under a plumbing contractor’s business auto policy.
- Damage to Your Property – One of your employees drives the company van into your building. The damage to the building would be covered under a plumbing contractor’s business property policy.
- Professional Errors – Your customer claims your business provided poor advice and faulty workmanship. A plumbing contractor would need Professional Liability Insurance to cover this claim.
- Cyber Attack – A hacker gets into your network and steals payment customer payment information you have stored in your system. A plumbing contractor would need a Cyber Liability Policy to cover these losses.
General Liability Insurance is a key insurance coverage for your plumbing business. However, it does not cover all of the exposures that exist.
A strong business insurance plan addresses your specific exposures. Whether you are a residential or a commercial plumbing contractor, each has there own set of exposures.
It is important to speak with a seasoned insurance agent that can understand your business, but also identify potential gaps in your insurance coverage.
Contact Farris Insurance Advisors for a review of your current business insurance plan.
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We look forward to speaking with you.