Determining whether your plumbing business is adequately insured need not be a painstaking process.
While you face the same risks as many other small businesses, such as property damage on a job site, you also face unique risks as a plumber. And let’s face it the last thing you want is to be burdened with is finding out that your insurance policies do not provide enough coverage after the accident or event.
When buying plumbing insurance, these are some of the questions you should be asking your agent to help find the insurance that’s best for your business.
1. Does your Plumbers insurance include General Liability insurance?
Most businesses, including your plumbing business, requires General Liability insurance. It covers you and your company in the event of third-party bodily injuries and property damages. It also provides coverage for personal injury – including libel and slander – and advertising damages.
This is an important consideration for you as a plumber to take on board as you will make frequent visits to your client’s home or business. Accidental damage that occurs during the course of your work would thus be covered under this insurance.
Note, this policy will not protect you from claims that result from mistakes you make as part of your work – you will need Professional Liability insurance for that.
2. What is the procedure for submitting a claim?
If an incident occurs, you will need to react quickly and make sure you open a claim with your insurer as soon as possible. Knowing who to call in such a situation will make the process both faster and easier for you. Ask your insurance provider for their guidelines on claiming from your insurance.
3. Does your business need Workers Compensation insurance?
In short, the answer is yes. You have to purchase Workers Compensation if your business employs any personnel. This insurance covers your employees lost wages and medical expenses as a result of on-the-job injuries or illnesses.
An average worker’s compensation claim costs $41,003 and can be a significant financial burden for your business if you do not carry this insurance. Furthermore, most US states legally require companies to have this insurance.
4. How much does it cost?
Knowing the cost of your premium will help you keep track of what your monthly overhead expenses are. This cost is also a key consideration to keep in mind when comparing insurance policies.
5. What factors affect premium costs?
As a small business owner, several factors go into deciding the cost of your insurance premiums. These include the number of employees you have, your previous claims history, the type of business you are operating, your business location, and the amount of experience you have in your line of work.
6. How much does the policy cover?
Knowing your policy coverage is another vital factor to keep in mind when comparing insurance policies. There are two general types of policy limits that most insurance policies have.
- Aggregate limit: This is the maximum amount that your policy will pay out over a single year as a result of all your claims combined.
- Per-occurrence limit: This is the maximum amount that your policy will pay out per claim.
Your limits are based on several factors, including your business’s size and your previous claims history.
7. How can you save money on insurance?
There are several ways to save money on insurance premiums. One of these is bundling policies together so that the final amount you pay is less than the sum of all of the policy premiums combined. Another way you can save money is by creating a safer work environment and reducing risk factors.
Wise up to your insurance requirements
Finally, it would help if you always compared insurance policies to find the best coverage for your business’s requirements. Speak to your insurance agent and get the right plumbing insurance for your business today.
