If you are making your living as a plumber you’re aware of the impact of not being able to work can have on you and your dependents. Life is full of uncertainties and you never know what can happen that’s why it’s vital that you have insurance to cover yourself against unexpected events. If your are an unincorporated business and only work with personal clients it may not be necessary to have comprehensive insurance but it is always better to be prepared for the unexpected.
Insuring your tools and work vehicle are a good first step. If your tools are destroyed or stolen it can prevent you from working as well as the cost of replacing them. There are policies available specifically to cover the replacement costs of tools that are necessary for you to conduct your business.
Separate insurance is required for a commercial vehicle (such as a van) which you use as part of your work from the car that you drive personally, even if they are the same vehicle. Some insurance companies will offer vehicle insurance as part of their overall business insurance policy.
Public liability insurance can be a requirement if you are working for corporate or government clients but even when it’s not legally required it is a good idea to be covered. Plumbers public liability insurance covers you against any claims of injury or damage to third-party property as a result of, or in the course of doing, your work. This can range from a flooded house from a leaky pipe to someone falling on a wet floor and suing you for personal injury. When you consider that if the worst happens and you are held liable for a serious injury it could result in a financial claim that has the potential to bankrupt you or your business it is a good idea to have this coverage even if not legally required to.
Professional indemnity insurance, again, is not required but may be beneficial if you are working for larger clients or on large projects where faulty work or a mistake on your part could lead to significant losses. Without this insurance you can be held personally liable for any financial losses resulting from substandard work on your part. Finally, if you employ someone as part of your business you may be legally required to have employers’ liability insurance as well up to a legally specified maximum amount.