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Plumber Insurance: Fixing Pipes & Protecting Your Business

Any plumbing business needs insurance coverage, just like any other business. Before delving into the basics of plumber insurance, keep in mind that:

  • The type of insurance you need depends on your type of business
  • Some insurance covers are required by law
  • Policies range from property damage, accidental injuries to vehicle and equipment

The plumbing trade is lucrative, but it has its fair share of risks and challenges. It can be affected by many hazards, like injuries in the line of duty or damage to the client’s property. Plumbing insurance comes in handy to protect your business against certain risks.

There’s a coverage designed for every risk your business will likely face. This absolves you of the liability of meeting the cost of the expenses that follow an unfortunate event. Whether you’re a plumber, pipefitter, bathroom installer, or heating engineer, the law requires you to have some type of coverage.

Types of Plumbing Insurance

Several standard insurance policies are available for plumbers. Knowing what each entails is an essential step in finding the right coverage for your business.

Some of the policies are as follows:

Business Owner Policy (BOP)

Ideally, when looking for plumber insurance, start with the Business Owner’s Policy.

It covers your business just like homeowners insurance protects your home and possessions. This option helps you cut insurance costs by providing three crucial coverages in one.

General Liability Insurance

The first coverage is General Liability Insurance, which meets the costs of personal injury and property damage. It covers a client injured while at your shop or any damages to the client’s property.

The coverage also protects you from some claims of slander and libel. However, it doesn’t cover your own mistakes in plumbing services. For such coverage, what you need is a professional liability policy.

Commercial Property Insurance

This policy covers your business’s physical location and equipment, whether owned or leased.

Business Income Insurance

This policy can help you recover any income lost. It comes in handy when your business encounters damages like a fire outbreak.

Commercial General Liability

This policy covers accidental injuries and damage to property during work. In some jurisdictions, you can obtain a plumbing contractor license without proof of general liability insurance.

The insurance is imperative and includes:

  • Costs of repair for property damage to a client’s home
  • Physical injury to customers, leading to a court case
  • Problems with plumbing installation

Worker’s Compensation Insurance

Workers’ comp is directed towards covering the medical bills of employees injured at work.

It also meets the payroll costs when an employee is away from work. This helps ensure your employees get medical care and can still support their families following an injury. This policy protects your business from possible lawsuits, which can be costly and time-consuming.

In many states across the United States, you may not operate a plumbing business without this policy. However, the requirements differ from state to state, especially for companies that hire contractors.

Commercial Auto Insurance

Your technicians spend a lot of time on the road in company vehicles from one job to another. If an employee from your company is at fault in a car accident, the consequences can be costly. This is especially true when there are injuries caused to another motorist.

In most states, all registered vehicles have to carry liability insurance, the same way personal vehicles have insurance coverage. The policy protects your company vehicles and employees if they get into an accident. It also protects them from damage, medical bills, theft, or vandalism.

Commercial Property Insurance

Plumbing businesses need property insurance to protect commercial property investment.

This includes the tools and equipment, as well as the office space. It covers both owned and leased property within the premises from fire and vandalism.

Product Liability Insurance

Public liability insurance isn’t a legal requirement, but it’s a wise idea to have it. It’s part of the standard Tradesman Saver package and helps protect you against financial liabilities associated with faulty products.

If your business installs or sells a product that later causes damage to a client’s property, this insurance comes into play. For example, you may install a radiator that leaks and causes extensive damage to your client’s property. The client can file a lawsuit against you. If the leak results from a fault in the radiator, the insurance will compensate.

However, this insurance won’t cover leakages due to faulty installation. The claim will be passed back to the manufacturer but will first be made to you as the plumber.

Inland Marine Insurance

This policy provides financial protection for a plumbing business that doesn’t remain in a fixed location. It serves businesses not covered under the standard commercial property insurance. The coverage covers tools, supplies, equipment, and anything else the company frequently transports.

The equipment includes drain snakes, caulking, and soldering machines. The policy coverage compensates you if the tools are damaged in transit or on the job site.

The list of plumber insurance coverages available is non-exhaustive. You must know what your business needs most. If you can’t afford every policy, consider buying the policies required by law first. With time you can diversify your options.

Find the Right Insurance for Your Business

After familiarizing yourself with the types of plumbing insurance your company needs, you need to find a reliable provider. There are many insurance companies, but their services differ.

Look no further for your plumber insurance needs in West Deptford, NJ. Talk to Keller Insurance for reliable and affordable plumbing business insurance services.


1. What types of insurance do plumbers need for their business?

Plumbers typically require several types of insurance to protect their business, including:

  • General Liability Insurance: Covers third-party bodily injury, property damage, and personal injury claims arising from your plumbing work.
  • Commercial Property Insurance: Protects your business property, including tools, equipment, and inventory, against damages from fire, theft, vandalism, and other perils.
  • Workers’ Compensation Insurance: Provides coverage for medical expenses and lost wages for employees who are injured on the job.
  • Professional Liability Insurance: Protects against negligence claims, errors, or omissions in your professional services as a plumber.

2. How does general liability insurance benefit plumbers?

General liability insurance is essential for plumbers as it protects against a range of common risks in the industry. It covers costs associated with third-party bodily injury, property damage, and personal injury claims arising from your plumbing work. General liability insurance provides financial protection and peace of mind, whether it’s a client slipping on a wet floor, damage caused by faulty plumbing installations, or accidental property damage during a job.

3. Do plumbers need workers’ compensation insurance if they’re self-employed?

Even if plumbers are self-employed, they may still need workers’ compensation insurance depending on state laws and whether they have employees. In many states, workers’ compensation insurance is required for businesses with employees to cover medical expenses and lost wages for work-related injuries or illnesses.

However, self-employed plumbers who work alone and have no employees may not be required to carry workers’ compensation insurance but should consider it an extra layer of protection.

4. How can plumbers lower their insurance costs?

Plumbers can take several steps to lower their insurance costs, including:

  • Maintaining a clean safety record and implementing proper safety protocols to reduce risks.
  • Investing in regular maintenance and inspections of equipment to prevent accidents and breakdowns.
  • Shopping around and comparing quotes from multiple insurance providers to find the best rates and coverage options.
  • Taking advantage of available discounts, such as bundling policies, completing safety courses, or implementing risk management strategies tailored to their business needs.