Plumbers insurance is without a doubt a necessity for any plumbing business operation. Purchasing a policy can reduce your overall risk and liability for anything that happens during or after a job. Not having plumbers insurance can severely limit your ability to operate, sometimes even making it impossible.
Here are even more detailed reasons why every plumbing company needs to have the assurance of insurance:
Plumbers Insurance Legal Requirements
Many states mandate that plumbers must have some form of ongoing insurance in order to operate. There may be some loopholes, but practicing without insurance could land you with fines or suspensions. You could even face jail time if you are caught in the stricter areas.
Do yourself a favor and study up on the operating requirements for plumbing contractors and general construction businesses in your area. Depending on the state or region you live, you may be required to carry certain types of policies or operate only with licensed plumbers insurance providers.
Even if you are not mandated by your particular state or municipality, not having plumbers insurance can severely narrow the scope of jobs you are qualified for. Many companies who hire out subcontractors or work cooperatively with them may turn aside an uninsured plumber trying to vie for a bid.
Likewise, being a general contractor that performs or hires out plumbing work from time to time may still require you to be covered with a plumbing insurance policy. General contractor policies often do not cover the types of perils that plumbing policies do, such as flooding.
Avoiding Unnecessary Risk
Plumbing may seem like an open and shut job, but just like any form of contracting or construction it carries inherent risks. A simple case of snaking out an old bathtub drain pipe could result in a mishap. Days or even weeks later, the owner is reporting that their pipes have been leaking into their first floor ceiling, and now they have to replace flooring, insulation, joists and worry about mold growth on top of that. More likely than not, they will expect the plumber who worked on the pipes last to be responsible for the costs, even if they cannot prove that the plumber was negligent or at fault.
This scenario means that a simple 30 minute job can turn into a disaster that shuts your company down financially and leaves you in legal hot water. Spare yourself the agony or even the worry by making sure you are covered with every job.
Protecting All Your Bases
Your business is likely the result of piles of invested money, capital and time. Should anything happen to you or your equipment, you may suddenly be left out of your only source of income. Many policies cover income loss for up to a year and also cover your expensive equipment and tools.
By purchasing a plumbers policy, you are not only protecting yourself from outside aggressive parties but also from cases of bad luck. With options like Business Owners Policies and added coverage for specific job risks, you will have a cushion from costly job mishaps while also opening up more opportunities to find work.