Plumbers General liability Insurance
An affordable Plumber’s general liability insurance policy is a must for all Plumbers. Whether you operate your own businesses or work as a subcontractor you need the protection general liability insurance offers.
Considering the activities Plumbers perform, accidents and mistakes can happen. Installations can go wrong causing damage to third parties. If you do not have the right coverage you can expect to pay for these costs from your own pocket.
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Plumber’s liability insurance is a must have if you want to safeguard your business and personal assets against unfortunate and unexpected occurrences. No matter how careful you are, disastrous things may occur while you are working as a plumber.
At FarmerBrown.com we offer the best and Cheapest Plumber’s General Liability Insurance packages for both large and small businesses, independent contractors, and the self-employed.
General Liability Insurance for Plumbers
What exactly is Plumbers General Liability Insurance?
In its most basic form it protects third parties from damages caused by you or your work. It covers personal injuries to third parties.Remember however that it does not cover injuries to people employed by you. It also covers damages to their property. It is also important to note that it also includes the cost of legal fees required to defend you if legal action is taken against you for a covered claim.
It is a statistical fact that a business that has been around for over 7 years has a 36% chance of being involved in at least one lawsuit. Even if you prevail in court, you still will be responsible for all the legal expenses. Everyone always complains how much plumbers charge an hour but you have nothing on lawyers.
What are the risks facing Plumbing Contractors?
The most common risk faced by Plumbers are damages to property as a direct result of the work they are doing. Pipes can leak after installation. If these leaks happen after installation the amount of damage caused can be extensive and expensive to repair.
Further injuries can happen to third parties by leaks into other units and other mishaps. Without a low cost Plumbers General Liability Policy you will be responsible for these repairs and injuries.
The other main concern is theft or loss of materials and tools from a jobsite . These losses can be protected against by purchasing affordable Plumbers Inland Marine Insurance. An inland policy will cover these types of losses. Copper piping has been stolen from job sites at an alarming rate in recent years. Will you be able to replace these materials yourself? Also since your tools are how you make your living would you be able to replace them if you were unable to work?
What Does Plumbing General Liability Insurance Cover?
It covers you against covered claims for property damage as a result of your work. It would also protect you if someone was physically hurt as a result of any work you performed.
Bodily Injury to Third Parties
Damages to Third Parties Property
Product and Completed Operations
Personal Advertisement Injury
- Bodily Injury – This portion of the policy covers your business against claims that could result if someone gets injured on your business premises. It also safeguards you against claims of injuries caused by you or someone working for you while executing tasks on a client’s property. The policy covers the medical costs of a covered claim of an injured person, up to the policy limits. It is important to remember that it does not cover injuries to your employees.
- Property damage – You can never completely rule out the possibility of a client’s property or a third party’s property becoming damaged while working on it. Damage could affect a client’s existing structure or even third party’s property. If there is damage, lawsuits and other legal claims could result in these situations. The cost of litigation could prove too much for your business. If you have an affordable Plumber’s General Liability Insurance you will have some peace of mind that your business has protection.
- Completed project or product liability – Sometimes, issues may not arise during construction but become apparent after completion. With most plumbing installations when completed are often behind drywall or otherwise out of sight, leaks can occur that may take months to become apparent. A client could complain that work was not completed to specification and threaten legal action. Plumbers’ liability insurance helps to insulate your business against losses that could result in such situations.
- Advertising injury – Advertising injury coverage is included in a general liability insurance policy. It protects you and your business against claims of invasion of privacy, libel, slander and copyright infringement related to advertising.
Is Plumber’s General Liability Insurance required?
In most States Plumbers have to be licensed. In most jurisdictions there are exams and work experience requirements that have to be met before a license will be issued. There is generally no legal requirement to have a low cost Plumber’s General Liability Insurance, it does mean you should not be covered.
There are many reasons that you should obtain coverage such as:
- Provides protection in case of accidents
- Allows your business to meet contractual obligations
- Protects your assets and business from loss
- Generally required to if you need to pull a permit or register as a contractor
- Will pay legal expenses to defend your business in the event of a covered claim
- Gives you peace of mind
Having at the very least General Liability Insurance is what every Plumber should have. Do not try to save a few bucks by not having insurance. If there is an accident and you do not have coverage all you worked so hard for can be gone in an instant.
What other insurance should Plumber have?
There are different types of insurance a Plumbing Contractor should have for business. A number of the requirements will depend on your City or State. The most common types of coverage are:
- Workers’ Compensation- If you have employees, you are required by law in almost every State to obtain Workers’ Compensation for them. It covers employees if they are injured or made sick due to work-related activities. There are large penalties if you fail to obtain coverage for your employees. In some extreme cases you can face criminal charges.
- Professional Liability- If you design or plan installations you should have Plumber’s Professional Liability Insurance. It protects you from claims if your designs or plans prove to be inadequate.
- Umbrella Policy– This gives policy an additional layer of protection against claims. It protects you from catastrophic claims that exceed your underlying policy limits.
- Commercial Auto– If you use vehicles in your business, you must purchase commercial auto coverage. Even if you are the only one that uses it, your van needs commercial auto coverage. If you are in an accident and you only have personal auto coverage there is a good chance the insurance company will deny the claim if you were using the vehicle for income producing activities. Even though commercial auto is more expensive than a similar personal policy, you are able to write the cost off on your taxes as a business expense. So in reality it may be cheaper in the long run.
- Inland Marine– The name is a bit confusing. This policy will cover your tools and equipment if they are lost, destroyed in a covered event, or stolen. Remember your tools and equipment are how you make money. Would you be able to replace them from your own pocket easily? For a few hundred dollars a year you can get covered.
- Surety Bonds– When you need a permit or need to register as a contractor, a surety bond is often required before issuing it. Also, if you are required to obtain a State License, there is usually a bond requirement as well. At FarmerBrown.Com, we can typically get your bond in a matter of minutes. We can also supply you an employee dishonesty bond for around $150 per year. With this you will be able to advertise that you are licensed, bonded and insured. This fact goes a long way in separating you from your competitors in the eyes of potential clients. As a result you should have more business.
- Business Owner’s Policy (BOP)– This policy bundles Plumber’s General Liability Insurance with Property Insurance Protection.This is a good option if you operate your business at a physical location with an office. They offer a lower price than the same policies purchased separately. However, they can be less flexible with coverage.
How Much Does Plumbing Insurance Cost?
Plumbers insurance can vary in cost just as it varies in coverage. The cost of Plumber’s insurance depends on the size of your company, your location, claim history,and coverage limits. It is usually a small price to pay to protect your business against risks. At FarmerBrown.com, we work with the best insurance carriers in the nation to find you the best Plumber’s General Liability Insurance coverage at an affordable cost.
Plumbers Worker’s Compensation Cost: This is based on payroll and it generally is $4.59 per hundred dollars of payroll.
Professional Liability: The cost of a Plumber’s Professional Liability Insurance starts at less than $89 per month.
Umbrella Policy: A Plumber’s Umbrella Insurance Policy costs approximately $980 per year.
Commercial Auto: Plumber’s Commercial Auto Insurance is approximately $177 per month per vehicle.
Inland Marine Insurance: Inland marine for Plumbers tools and equipment costs around $180 per $5,000 of coverage per year.
Surety Bonds: Surety bonds for Plumbers are 1% of the bond amount. Some bonds are credit based so if your credit is below 700 you can expect to pay more. If you have a large job and need payment and performance bonds they are 3% of the contract price. You will also need excellent credit. If the amount of the bond is more than $500,000 you will also need to provide financial statements.
BOP: BOP Insurance for Plumbers ranges between $1,000 and $2,800 per year.
Why Purchase Liability Protection
Some Plumbers believe that the additional monetary cost of having Plumber’s general liability insurance and protection for legal liability is too much. They figure they are careful and nothing is going to happen. However, no matter how careful you are, accidents can and do happen. They can even be caused by other things outside your control. If something were to happen it could cause you financial ruin. It does not matter the size of your business; you must protect yourself.
Many Plumbers believe they can forego insurance coverage to cut costs when starting their business. This is just being penny wise and pound foolish. When you first start the business it might be a stretch to afford insurance but in reality you can not afford to be without it either. Protecting your business at all costs should be very important to every carpenter.
In today’s society everyone hires lawyers the minute something goes wrong. Especially with contractors and Plumbers in general. People are being advised that when they are hiring someone to do work, they should hire someone with some insurance coverage. It is especially true for commercial projects and other large-scale residential plumbing projects.
Not having the right insurance coverage can damage your business if something goes wrong. It also may prevent you from winning contracts and growing your business. No one will recommend you as a Plumber to do anything on their property if you can not provide proof of having Plumber’s general liability insurance at the very least.
It is in your best interest as a contractor to speak to the professional agents at FarmerBrown.com to ensure you have the appropriate coverage for the type of project you will be working on. If it turns out you do not have what you need you can get a same-day quote on what you need.
There was a situation where a homeowner hired a plumber to do some work in the attic of the home. While performing the work inadvertently and unbeknownst to both the Plumber and homeowner a joint between two pipes was not soldered correctly causing a very small leak. Months went by before it was discovered. By the time the leak was discovered the damage had spread throughout the home.
The homeowner then went to their insurance company to make a claim for the damages and was told that her homeowner’s insurance does not cover damages caused by Plumbers. The homeowner filed a huge claim against the plumber, luckily for him, he had the proper coverage and the claim was settled. Instead of having a business ending event the business was able to continue operating.
In a tragic accident, a plumbing company was repairing an underground sewer line in the front yard of a home. There was no cave-in protection in the excavation while they were performing the work. The trench collapsed, killing the worker. OSHA says the site did not appear to have the necessary safety precautions to keep the tragic accident from happening.
To compound this tragedy, the Plumbing contractor did not have the proper workers compensation coverage. They are now facing huge lawsuits that will ruin them. On top of that they may even face criminal charges. Not having the proper insurance is not a trivial matter as this case clearly shows.
Is Plumbing Insurance Required?
In many places, State law mandates Plumbing contractors to carry general liability insurance. Plumbers are among the most closely regulated professions. Since their work in many instances can seriously affect the well being of the public at large. Almost all states have plumber licensing requirements for plumbers. The requirements to become licensed and exams vary from state to state.
Having gone through rigorous licensing requirements, you need to make sure that you comply with the laws in your state so that you can successfully operate your business. Your plumber license is just as important as your plumber’s insurance. You need to make sure to have all the information you need regarding having the proper insurance coverage.
Additionally, commercial auto insurance is among other policies that might be required by the government for a business to legally operate. While your state or client may require certain policies, additional coverage might be recommended to guarantee adequate coverage for your business. The best way to confirm your coverage meets the industry’s requirements and recommendations is by using a knowledgeable agent at FarmerBrown.com when choosing insurance policies.
We have experienced team members that can analyze and recommend the appropriate coverage for your Plumber’s Insurance needs. Whether you are one man show or have 40 employees all business assets need to have some type of protection. Protecting your valuable physical assets with the quality affordable insurance coverage, we are here to help customize that coverage to your needs.
Our team members are professional and knowledgeable and able to help you choose the perfect policy for your Plumbing Contractor Insurance needs.
- Being a Plumber requires specialized a policy to cover your unique needs
- Flexible agents to work on your time schedule.
- We provide easy online payment options.
- We are licensed in all 50 States to offer Plumber’s Insurance.
- Same day service in most cases.
- Get your proof of insurance in under an hour.
- “A” Rated insurance companies that pay claims quickly.
FarmerBrown.Com has the capability to provide quotes for the hard to place risks and get you insured quickly and conveniently. We have the experience to analyze and recommend the appropriate affordable Plumbing Contractors General Liability Insurance Coverage. Call now to speak with a knowledgeable agent. Our experts can review your needs and get you the proper coverage your business deserves. They will make sure you have the coverage you need at the best price for you. Best of all, you can get a free, no-obligation quote in minutes.
By selecting the best policies from the nations top insurance carriers FarmerBrown.Com is able to deliver coverage that represents the greatest value for you. You can obtain a quick Plumber’s Insurance quote by clicking above, or by calling (888) 973-0016 today to find out more about the extensive insurance programs offered by FarmerBrown.Com to reduce premium cost and risk. Let the FarmerBrown.Com team make obtaining insurance coverage trouble-free. Get the coverage you need at the rates you deserve.
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