Plumber Business Insurance

Professional indemnity insurance, often called professional liability insurance, helps pay for customer lawsuits stemming from an accusation of professional negligence. That includes mistakes, oversights, and missed deadlines that financially impact a customer.

While not usually required, it's strongly recommended for both plumbing companies and plumbing contractors. That's especially true if your business does plumbing design or consulting work for clients.

Here are a few situations where a professional liability policy would protect a plumbing business:

• A plumber joins two incompatible metals, which corrode and cause water damage inside the walls of a house.
• An improperly installed water heater leaks and damages a basement and its contents.
• A plumber misses an appointment to install a new sink, forcing a coffee shop to delay its grand opening.

A simple mistake can lead to tremendous out-of-pocket costs if you're not adequately protected. The right plumbing liability insurance pays for legal expenses if you're blamed for a leak or other damage, and provides peace of mind so you can focus on your work.

In addition to those mentioned above, there's a wide range of plumbing insurance policies to match the specific needs of your business.

Plumbing professionals, including sole proprietors, should consider the following policies:

• Builder's risk insurance provides coverage for a structure being built at a construction site, along with pipes and other materials. It's also called course of construction insurance.
• Commercial property insurance covers your office building and everything in it, including computers, tools, and furniture. It helps you recover after a fire, storm, or burglary.
• Business personal property (BPP) insurance can be added to your general liability policy as an endorsement to cover business property kept at a fixed location, such as your office.
• Inland marine insurance is a type of plumbers tools insurance that goes wherever you go. It covers tools and equipment in transit, stored off-site, or at a jobsite.
• Commercial umbrella insurance boosts the coverage on your general liability, commercial auto, and employer's liability insurance once the policy limit is reached.
• Business interruption insurance, also called business income insurance, covers day-to-day operating costs and lost income resulting from a fire or other covered property claim. You can usually add it to your property policy or BOP.

Plumbers often need licenses, permits, and bonds to do their work legally or to take on certain projects. Here's a quick breakdown:

• Licenses: Most states require plumbers to get licensed in order to do paid work on their own. You usually need a certain amount of education and experience, and have to pay a licensing fee.
• Permits: For anything beyond minor repairs, you likely need a permit from your county or other municipality. That's especially true if you're installing new lines or doing plumbing work that connects to a city's sewer line or other municipal system.
• Bonds: Bonds are often part of the state licensing requirements for plumbers. You might also need a bond to bid on a public works project or sign a contract with a client.

Plumbing businesses often need a license, permit, bond, and plumber liability insurance in order to do their work legally. This helps you avoid penalties, and ensures you're protected financially in the event of a lawsuit.

It'll take a little research to learn the regulations for your area. In addition, most states require workers' compensation insurance when you have employees, and commercial auto insurance for business-owned vehicles.