Whether you run a small plumbing business with a few employees or operate as a sole trader, there's much to consider when it comes to insurance. Not only do you have to safeguard your work to ensure minimum liabilities, but you'll also want to consider additional risks like accidents on the job, defective products and wrongful advice. Here are some considerations when planning insurance for your plumbing business.
Consider Your Core Plumbing Risks
As a plumber offering a service to clients, there are certain core risks that you will face and may be liable for. For example, if your work accidentally cases damage to property or affects water supply, then claims may be made against you in order for the third party to get adequate compensation. Public liability insurance will protect you from this risk. Similarly, you may use certain pipes, taps, bathtubs and sinks for your clients. If any of these break down because of defective work or because you failed to meet certain specifications unintentionally, then you may be at risk of paying out claims. In these instances, products liability insurance will protect you and your plumbing business from risk.
Think Of Additional Risks You May Come Across
While you absolutely need to protect yourself from core plumbing risks, certain additional risks may also end up putting you out of business if you don't properly protect yourself from them. For example, if you drive a vehicle with plumbing equipment on board and you get into an accident, you will likely need commercial motor vehicle insurance to avoid paying hefty sums from your pocket. You may also be able to seek insurance that can compensate you for loss of business in case of motor accident while you're on the job. If you have sub-contractors working for you, make sure you always let your insurance company know to avoid claim difficulties later.
Consider And Protect Yourself From Advisory Risks
Even if you provide paid or unpaid advice to clients without actually doing the work, you may be held liable. This could be anything from bathroom and kitchen design to piping work to use of certain product brands. If your advice is proven to be faulty, then you will end up paying a big price for it. You can prevent this from happening by taking out professional indemnity insurance. This type of insurance covers wrongful advice, project management and flawed design work for plumbers.
When planning trades insurance for your plumbing business, make sure you consider these vital factors.