If you’re a plumbing business owner, it’s important to have the right plumber insurance. There are several things to consider when choosing an insurance policy, and here are some dos and don’ts to help you get started.
- Get a General Liability Policy
A general liability policy offers home-based businesses protection from third-party claims. These policies typically cover your business premises, products, completed operations, and personal injury or property damage arising out of the normal course of business.
- Add a Business Owner’s Policy
A business owner’s policy bundles general liability with property insurance, also known as a BOP. This type of policy is ideal for small businesses as it can be more affordable than purchasing the two policies separately.
BOPs usually cover buildings and contents, loss of income due to an interruption in business, business personal property, and computer fraud.
- Make Sure Your Insurance Covers All Business Activities
Many plumbing businesses provide a range of services, from emergency plumber calls to drain cleaning and installation. Be sure that your policy covers all the activities you’re involved in, as there are often separate exclusions for certain tasks.
- Add Umbrella Coverage
Umbrella coverage can provide extra protection over and above your general liability and business owner’s policy. If you’re injured on someone else’s property or if damage to a third party is caused by accident involving one of your employees, umbrella insurance could help pay for damages exceeding your existing policies up to a certain amount.
Umbrella insurance is also a good idea if you have high-value assets that could be at risk in the event of a lawsuit.
- Make Sure You Have the Right Coverage Amounts
It’s important to make sure you have sufficient liability limits. An experienced insurance broker can help you determine how much coverage you need for your business based on industry standards and input from other local plumbers and data about claims in your area.
- Don’t Skip Insurance Coverage
Many small business owners make a common mistake in thinking that their standard liability policy will cover them if anything goes wrong. Unfortunately, this isn’t true because even though you may have enough coverage to pay for the repairs or replacement costs of your property and equipment, this won’t protect you against lawsuits.
- Don’t Fall for the Limited Coverage Trap
Limited coverage policies may seem like a good deal, but they often don’t cover all your business needs and can also leave you exposed in some pretty serious situations.
For example, most plumbing businesses work with gas and electricity on a daily basis; if something goes wrong while they’re working on these systems and they’re not adequately insured, the costs to fix any accidents could be enormous.
- Don’t Assume Home Insurance covers your Business
Home insurance policies usually don’t cover business activities. So if something goes wrong and your business is sued, you could be left footing the bill yourself.
In conclusion, it’s important to make sure you have the right insurance to protect your business. Speak to an insurance agent today to learn more about what policies are available and how they can help safeguard your plumbing business.