Insurance For Plumbing Contractors

Four Crucial Types of Insurance Policies for Plumbers

2. Workers' Comp. Insurance

Workers’ compensation insurance, also called workers’ comp or workmen’s comp, essentially offers benefits to your employees in case of an injury sustained or illness contracted at work. It can also take care of the legal expenses in case an injured employee files a lawsuit against your business.

Not only does this policy provide mental peace to the workers with the knowledge that they would be taken care of, but it also makes you feel relieved as a plumbing contractor by knowing that you would not be easily sued in case of accidents at work.Here are details about what this policy encompasses:

Medical Expenses

This policy covers the medical fees associated with work-related injury or illness to an employee. This may include emergency room visits, surgeries, and relevant prescriptions. For instance, if one of your workers gets injured while using a hand tool at a client’s house, workers’ compensation insurance can pay for their hospital expenses.

Lost Wages

This insurance policy can take care of a portion of the income lost while an employee needs time off to heal from an injury or accident at work. For example, if an employee is accidentally hit by a falling object while at work, they may be deemed unfit to work for a few days. In this situation, your insurance provider can take help replace a part of the missed wages. 

Permanent Disability 

In case of an injury or temporary disability of a worker worsens into a permanent disability, this insurance policy can take care of some of the costs. For instance, if an employee becomes permanently unfit for work, they would receive the permanent disability portion of your worker’s compensation insurance. The payment your insurance company provides would vary according to the nature of the injury or illness. 

3. Commercial Auto Insurance

This insurance policy takes into account the usage of vehicles such as cars, trucks, and vans for work. It may include vehicle damage, third-party damage, uninsured motorist protection and comprehensive coverage. 

Whenever a worker of yours transports a tool or visits a customer, there is always a risk of an accident. Even a single accident can be expensive, as vehicle repairs along with bodily injuries can amount to a large cost. Here what a commercial auto insurance policy may cover:

Liability Coverage 

This covers the financial costs in case a worker gets injured or dies as a result of an accident. This aspect takes into account property damage to another car if you are at fault. It generally takes care of the associated legal expenses in case of a lawsuit against your business. 

Comprehensive Coverage

This includes paying for the damage to your vehicle due to reasons other than an accident. These causes typically encompass theft, vandalism, floods, fire, earthquakes, or damage due to a bird or an animal. 

Uninsured Motorist Coverage

Commercial auto insurance takes care of the costs in case your vehicle is hit by an uninsured driver. It covers your injuries as well as property damage caused by the other driver. Often, underinsured motorist coverage is also included in this policy, which protects you if the driver at fault possesses insufficient insurance.

4. Commercial Property Insurance

Commercial property insurance is vital for you as a plumbing contractor if some of the work is done on your own site, such as cutting, piping, and welding. 

In this situation, some risks may be higher than others, such as fire exposure. For example, the pipes and fixtures your team is working on may be made of plastic and involve the use of adhesives that can be flammable. 

Coverage of Commercial Property Insurance

Aspects of your business that may be covered under this policy include:

• Your premises
• Outdoor sign
• Inventory
• Equipment and furniture
• Fence and landscaping

However, know that commercial property insurance would not cover all kinds of damage. Here is a list of situations where this policy is not applicable:

• Your customer accidentally drops their laptop while tripping over some tools in your office.
• You meet with an accident while making a delivery to a client, and damage your vehicle in the incident. 
• A brook in proximity overflows due to heavy rain, flooding your building and damaging some of your inventory.
• Intentional property damage by you or your employee.

Factors Affecting the Cost of Commercial Property Insurance

The amount you would have to pay for commercial property insurance heavily depends upon the value of your business assets, including the building itself. Other factors that play a role in deciding your premium include:

• Location: This involves determining whether the area you operate in is susceptible to natural disasters
• Construction: If your building is reliable and upgraded when it comes to electrical wiring and plumbing, you would probably have to pay a lower premium. 
• Occupancy: A site where substantial repair work is carried out would lead to higher premiums.
• Fire and theft protection: If your site is close to a fire hydrant or a fire station, then commercial property insurance premiums that you would have to pay would inevitably be less.