Homeowners insurance typically only covers sudden accidental damage; thus if a poorly maintained pipe bursts, homeowners insurance likely won’t cover it. Other policies, like additional living expenses coverage, may help cover costs such as staying at a hotel while a professional plumber is working on major projects like sewer line repair or even installing a new water heater.
A plumber usually needs two policies to operate effectively: commercial auto coverage for their work vehicles and a business owners’ policy (BOP) that bundles together both general liability and property coverage. Workers’ compensation coverage may also be mandatory in many states.
General liability (GL), also known as commercial general liability insurance, provides your plumbing company with protection in case someone makes a claim against it for property damage or bodily injury caused by its work. Furthermore, these policies can include product and completed operations coverage to protect you if work causes further harm to clients’ homes or businesses after completion. It is different than Home Warranty Plumbing Coverage.
Plumbers tend to own numerous pieces of equipment and tools, and it is wise to ensure their protection through a tool and equipment insurance policy or contractor’s equipment policy in case these are stolen or damaged. These policies typically come as an add-on to general liability policies or business owner policies and are generally quite cost-effective.
Depending on how often you transport tools and equipment in a company vehicle, having a commercial auto policy might be essential to protect both you and your business should an accident or incident damage it; typically these policies also offer liability coverage as an added feature.
Plumbing jobs often involve working in tight spaces that can be dangerous and difficult to maneuver. Commercial auto insurance provides protection for vehicle repairs and medical costs when an employee of a plumbing business is involved in an accident while protecting its vehicles against theft and weather damage, including for company cars.
Professional plumbers may cause property damage on the job, such as when accidentally leaking water into a client’s home or rendering their work area inaccessible. Professional liability or errors and omissions insurance protects against claims that your plumbing services were unsatisfactory or negligent.
Workers’ compensation coverage is required in most states for employees of plumbing businesses. It provides coverage for medical costs and a portion of lost wages in case an employee is injured during work-related incidents.
Business Owner’s Policy (BOP)
A Business Owner’s Policy (BOP) makes it simple and affordable to combine general liability and commercial property insurance in one convenient policy package, along with optional policies such as business interruption coverage or crime insurance.
A business Owners Policy (BOP) includes liability protection to cover bodily injuries to thirdparties or damage to their property, as well as business interruption coverage to offset lost income should your company need to relocate temporarily – for a plumbing business, this would include rent for temporary locations as well as extra expenses such as inventory or equipment costs.
Property coverage under a BOP extends to your company buildings, furniture, and inventory as well as hired/non-owned auto policies that protect vehicles not driven on company business. Unfortunately, liquor liability and professional liability must be obtained separately; you can add umbrella liability for an added layer of protection.