Plumbers will always be in high demand. Sinks will always get backed up, toilets will always get clogged, and pipes will always leak. Whether it’s a house, apartment complex, or office, no matter how new or modern a building or an appliance is, the system will inevitably break down sometime and need to be repaired quickly so life or business can return to normal. While these situations present plenty of opportunities for plumbers, they also put them at risk. By entering new locations and working in the presence of building owners or other clients, you could unintentionally harm their property or even cause an injury, and could be sued for damages. That is why anyone working in the plumbing industry, whether in repair or in installation, needs insurance.

This guide will provide all the details about plumbing insurance costs needed to make an informed decision.

What We’ll Cover

• How much does plumbing insurance cost?
• What is plumbing insurance?
• What does plumbing insurance cover?
• What does plumbing insurance not cover?
• Benefits and risks
• Tips for buying
• FAQ
• Summary
• All types of insurance you may need

How Much Does Plumbing Insurance Cost?

Plumbing insurance cost can be as low as $39 per month and as high as $89. The rates vary by provider and depend on your coverage, service, experience, and claims history. Premium prices for typical policies are as follows:

Most providers offer customized policies with additional insurance to cover your company’s specific requirements.

What Is Plumbing Insurance?

Plumbers face a number of risks on each job. The moment you enter someone’s home or business, an accident could occur. When the job entails working with pipes and water systems, a massive (or even minor) leak could cause significant damage and be extremely costly. Plumbing insurance protects you from potential lawsuits from all your business activities. It is an essential coverage and must be obtained before starting any job, no matter the size.

What Does Plumbing Insurance Cover?

The potential liabilities plumbers are exposed to daily are various and significant. Property damage from a broken pipe, an employee or third party getting injured after tripping over a piece of equipment, or a mistake like using incorrect casing or fitting that leads to property damage or requiring additional work. Standard plumbing insurance policies typically protect you from expensive and time-consuming lawsuits from such scenarios and others, including:

• Third-party bodily injury
• Third-party property damage
• Personal injury
• Products/completed operations
• Professional negligence
• Retroactive claims for previous contracted work
• Subcontractors’ errors
• Work-related accidents and illness
• Ongoing medical care, like rehab
• Lost wages during recovery

What Does Plumbing Insurance Not Cover?

Despite the wide-ranging potential liabilities you are protected against with standard policies, there are a number of common risks that are not covered under most policies and require additional insurance. They can include:

• Automobile accidents
• Equipment breakdown and theft
• Repayment to clients for unsatisfactory work

Loss or damage to property while in transit or offsite

Your coverage will depend on the package you choose. Review your policy to understand your protection and add policies to fill in any gaps.

Benefits and Risks

Plumbing insurance offers various benefits to cover risks, including:

• Protect your assets: Whether you are a sole proprietor or have a larger business, the cost to pay for damages is extremely high and can lead to bankruptcy.
• Peace of mind: ​Knowing that your business is covered in case something happens outside of your control gives peace of mind to you and your customers. Additionally, clients are more likely to hire plumbers who are adequately insured.
• Cover legal expenses: If a client, employee, or third party files a lawsuit against you, plumbing insurance will cover the expenses, including attorneys’ fees and damages.

Tips for Buying

When considering plumbing insurance costs, keep the following in mind before making your decision:

• Work with an independent agent: An independent insurance agent will help direct you toward providers with the best rates and the most experience covering plumbers and related fields.
• Identify your risks: Be sure to thoroughly analyze your services and identify potential risks. For example, if you work in homes or businesses where water damage would be extremely costly, you will want to make sure your limits will cover potential liabilities.
• Compare quotes: Policy costs vary between insurers. Consider several quotes to find the best rates and coverage.

All Types of Insurance You May Need

FAQ

What is employment practices liability insurance (EPLI) and do plumbers need it?
Employment practices liability insurance (EPLI) protects a company against lawsuits from work-related claims like harassment, wrongful termination, breach of contract, and discrimination. Any business with employees might need this coverage. Even small companies are at risk of such a lawsuit, and the defense cost and damages if found liable can be extremely high.

What is a surety bond?
A surety bond covers the expense of paying customers back for unsatisfactory work or if you are unable to complete a project.

Do you need to insure your plumbing equipment?
As a plumber, your tools are essential to your ability to do your job. If they are stolen or broken, not only do you have to spend money to replace them, you might have to give up potential projects in the interim. Insuring your equipment will ensure you are quickly able to repair or replace your assets, and can help replenish any lost income.

Summary

Plumbing insurance protects against potential financial ruin from lawsuits related to your services. By understanding plumbing insurance costs and determining your needs, you can know that your policy covers potential risks and feel secure that your business is protected.