Plumbers Insurance 101: Everything You Need to Know

In Ontario, as well as other parts of Canada, there is a high demand for plumbers. This demand creates a lot of job opportunities for small businesses, independent contractors, and larger construction groups.

While larger companies may have an umbrella policy to cover smaller contracted plumbers, the benefits of having your own tailored policy are crucial to protecting yourself and your business.

By understanding what is available to you as a plumber and knowing the details of contractor liability insurance in Oshawa, you can create a policy to cater to your current needs. As well, you can always add or even decrease coverage later on.

Why do you need insurance?

Many trades, such as electricians or carpenters, can have a high risk of injury. While you can experience a workplace injury as a plumber, there is a higher risk of property damage for the client.

In the event that something unfortunate happens and a pipe bursts, flooding a client’s home or a new building on a job site, insurance will help you to cover the financial side of claims, legal fees, and more.

A vehicle that you use for work, such as getting to and from job sites, storing tools, and transporting equipment, should also have its own insurance that is separate from your own personal vehicle coverage.

Then, there are the tools of the trade themselves, without which you cannot perform the work. Should they become damaged or lost, insurance can help with recovery costs and replacement fees.

It doesn’t matter if you are there to perform work for a client, help create their dream home with the plumbing requirements specific to their build, or to fix a leaking toilet in an existing townhouse, insurance is there to protect you from unpredictable events.

The Different Types of Insurance

Fortunately, there are several different types of insurance available for you to choose from, including the following:

Commercial General Liability (CGL) Insurance

This is the basic amount of insurance you should have, regardless of how big your plumbing business is. Being essential for any trade, this covers you in the event that a claim is made against you, taking care of the legal fees you may incur.

Liabilities are present when you are working with any existing pipes, new builds, or even improper or faulty installation made by a previous outfit, whether you are there to fix it specifically or work on something else.

CGL will look after you financially, even if the fault was not yours, but you still incurred legal fees. Essentially, you will not have to pay out-of-pocket expenses for the majority of such claims.

Pollution Liability Insurance

Over the last several decades, the desire to protect the environment has increased dramatically, and this is being reflected in insurance policies for trades people.

Essential for plumbers working on waste disposal, sewage, and water lines, pollution liability insurance protects you in case there is a burst pipe or leak that causes damage to a third-party property or person. It will cover the cleanup depending on where and how much of a spill there is, as these costs can increase into thousands of dollars very quickly.

Commercial Vehicle Insurance

It is recommended that you do not use your personal vehicle for work, and that your company vehicle has its own insurance separate from that of the family car. In the event of a claim, keeping the policies separate reflects better on the business and even your own personal premiums.

This coverage will protect you from the fees, legal and medical, in the event that your commercial vehicle is vandalized, broken into, or is involved in an accident, regardless of third-party involvement.

Tools and Equipment Coverage

There is nothing worse than reaching for a plumber’s wrench only to find it’s not there. You go to check your vehicle and discover that all your tools are gone. Or, perhaps a tool or piece of equipment is damaged while you’re working on the job site.

Without your tools, you cannot work. Thus, having insurance to cover the cost of repairing or replacing them is the logical choice. Some policies will also extend to covering accessories required for the work.

Surety Bond

This optional coverage helps with fees and claims in the event that you are unable to fulfil your contractual obligations and miss a deadline, or are just unable to complete the work at all.

This could be of more benefit to you if you are contracted by a construction group, but smaller businesses can benefit from it as well.

Business Interruption Insurance

In any business, it’s almost inevitable that something can happen to disrupt the day-to-day running of your business. This is becoming more common with so much business being done online, and reviews can have an impact on whether or not people hire you.

Should something occur that will prevent you from working, business interruption insurance helps to cover lost wages, claims, and legal fees, depending on the situation.

We’ve Got the Insurance You Need

W.B. White Insurance has all your contractor’s insurance needs in one place. Call  1-877-470-4572 today to find out how we can help you create the best policy for your plumbing business, or get a free quote online.