Business Insurance for a Plumbing Business
If you own a plumbing business, you're in an industry on the rise. Plumbers are typically always in need. One thing most plumbers have in common is their need for business insurance.
If you run a plumbing business, you likely know that insurance can be vital. Customers may not employ you without it and you could be left open to major out-of-pocket expenses if you skimp on it. Add to that the fact that some states require certain types of coverages before they issue plumbers a license.
Let's take a look at exactly what insurance a plumbing business might need to have so both owners and customers can have “peace of mind”.
What Insurance Do Plumbing Businesses Need?
When you start a plumbing business, insurance might be the last thing on your mind. You're focused on building a great team, a strong reputation, and having the equipment you need to compete with other businesses. But if you fail to get insurance, your business might not last long!
Business insurance can be complicated when you're just starting out. There are a lot of terms flying around - Workers' Comp, General Liability, Business Owners Policy. It can be a lot to take it in.
It's important to understand that there are certain types of insurance that you legally cannot function without. Then there are other coverages to consider that can provide further protection. We'll break down an insurance package for plumbers to see what can be included.
Business Owners Policy - What's Included?
Many insurers offer a bundled Business Owners Policy (BOP). This can be a great option because it combines insurance products into one policy. It can make it easier to manage instead of handling multiple individual policies.
General Liability Insurance
This is one of the most important types of business insurance for plumbing businesses. Customers, whether residential or commercial, may not hire you without general liability insurance.
At its most basic level, it helps protect other people from things your business may do and could reduce the financial risk to your business.
It can also protect other people's property. It could cover repair or replacement costs of damaged customer property if mishandled by your business.
Don't forget, the costs involved in third-party bodily injury and property damage could go way beyond paying a few bills. There could be legal expenses to factor in, which can get expensive fast. It could only take a relatively minor incident to seriously disrupt the profitability of your business.
General liability insurance doesn't cover your workers for injuries - we'll review that in a moment. But if your work involves another party's property, general liability cover could be essential.
Property Insurance
Let's clear one thing up right away. When we use the term 'property' in insurance, we're talking about items that a business owns or rents.
In this case, property insurance could cover the property of your plumbing business. Think tools and equipment. It may also include inventory, furniture at your place of business, and even computer equipment.
So if a fire breaks out at your office and destroys your desks, computers, and some tools, you could make a claim on your business property insurance policy. With some policies, you may even be covered for loss of income while your business is getting back on its feet.
They may also cover you in the event of:
- Theft
- Vandalism
Cyber Insurance
We're not trying to freak you out, but cyber-attacks can happen. You may wonder, what information does my business possibly have that a hacker could want? In short, personal information about your clients.
Cyber insurance is there to help provide protection if your business is a victim of such a breach.
Most of us are not experts in this field. If your system is compromised, you might need a cybersecurity professional to investigate the extent of the breach.
There may also be legal fees to consider, plus the costs involved in notifying affected parties. These expenses can quickly add up and cyber insurance could cover them.
General liability, business property, and cyber coverage are the three types of insurance that are bundled into a Business Owners Policy from PolicySweet. But there are other forms of insurance that you might want to consider taking out to help cover yourself and your workers.
Workers' Compensation Insurance
Sadly, no matter how careful everyone is, workplace accidents can happen. Disabling workplace injuries cost businesses $55.43 billion in 2019.
There's a reason why many states require plumbing businesses to have Workers' Compensation insurance. Workers' Compensation is designed to help protect workers from financial and legal expenses that they incur due to a workplace injury, or an illness acquired at work.
It can help cover:
- Medical expenses
- Lost wages
- Ongoing rehabilitation
It can also help protect your business from fines imposed by the state for not having the required insurance.
Help Cover Your Plumbing Business with PolicySweet
Plumbing businesses want high-quality insurance coverage to help protect its bottom line. At PolicySweet®, we specialize in offering customized business insurance that can be the right fit for you.
It only takes around a few minutes to get a quote. Click here to start a quote right away!