The plumbing sector, like any other area, carries some risks. If you have a knowledgeable and experienced plumbing company, you may not be too concerned about damage resulting from your work, but equipment breakdowns and other accidents are usually unpredictable and can expose without proper protective measures, including taking out plumber’s liability insurance for liability for major losses. One of the most common risks for plumbers is liability for water damage to homes or buildings when performing employment contracts. Plumbing can also have other significant costs due to property theft, car damage, and even possible worker injury. Fortunately, there is insurance coverage for both plumbers and homeowners who want to protect themselves against the risk of water damage.
It is also a good idea to partner with a reputable and highly qualified water remediation company. A good water damage partner can be there to respond quickly and take care of the issue completely, greatly reducing your overall exposure to any issues.
Water damage: who is liable?
Water damage is the main source of insurance claims for homeowners. The Insurance Information Institute listed water damage as the third leading cause of all household insurance damage between 2012 and 2016. Out of 50 insured households have claimed property damage from water or frost damage.
With that in mind, water damage is one area of coverage that is absolutely essential to be aware of, but the question remains, if water damage occurs in a home, are you responsible or is the owner responsible?
The answer depends on the circumstances.
Cases where your plumbing company is liable
A plumbing company can be held liable for water damage if:
- You cause an accident in a customer’s home that causes water damage, even if it is unrelated to your specific job.
- The equipment is not installed correctly or work is poorly carried out, resulting in water damage.
If you are held liable for the damage, you may also be liable for the costs associated with the damage or accident.
Common situations where plumbers are held liable for damage include installing a leaking faucet that damages the wooden cabinets underneath, improperly reconnecting plumbing, causing leaks, and even dropping tools into a bathtub and cracking them.
Situations where you cannot be held responsible
However, in general, you will not be held liable if the water damage was caused by any of the following:
- The owner has used the product incorrectly or in a manner that does one Malfunctions that was not done. To be used.
- Piping initially installed but has since failed due to normal wear and tear or lack of owner maintenance.
- Correctly installed pipes burst from frost. (This should normally be covered by your home insurance.)
- The installed device had a manufacturing defect that caused a malfunction. (As long as you did not notice the error when installing the device, in this case the manufacturer should be responsible.)
Even with these basic guidelines realizing, there are always unique circumstances that will affect a water damage claim. No matter how sure you are that you won’t make a mistake (or how lucky you have been in the past), there are no guarantees. this catastrophe will not happen again in the future.
Basic types of cover for the installer. The general liability insurance is intended to protect you against claims due to water damage or other property damage, injuries to third parties, etc. But there are other types of coverage available to protect your business.
Basic Types of Cover Plumbers Need:
1. Liability Insurance
Liability insurance protects you if your actions lead to property damage or personal injury to third parties (e.g., if they slip and fall due to the water from the plumbing work performed, etc.). When working on jobs that involve larger or more expensive items of property, plant and equipment, you may want to increase the total cost that your insurance covers. Some large commercial jobs may even require a minimum insurance amount before you can start working.
2. General Property Insurance
Since plumbers are frequent travelers who often have to carry their tools with them, there is a chance their equipment could be stolen, creating a lot of inconvenience and additional expense, so general property insurance can cover the loss or injury. on sanitary facilities and other equipment.
3. Commercial Auto Insurance
In addition to property insurance, commercial vehicle insurance is another indispensable form of coverage for contractors, such as plumbers who have to travel to construction sites. This coverage is similar to private auto insurance, but offers protection for company vehicles. For business trips, you should also take out commercial vehicle insurance for these vehicles. Even if you are already covered by private car insurance, this coverage does not apply if you have an accident while driving to work and your company is liable.
4. Accident and Illness Insurance
Self-employed plumbers can make a living, but the downside is that if you fall ill or have a serious accident, the source of income is lost. unfortunate circumstances. This means that you will be paid a fraction of your monthly income while you are sick. With this arrangement, a plumber can settle your bills and maintain your standard of living.
Depending on the size of your plumbing business, the number of employees, the type of jobs you perform, and a number of other factors, you may need additional types of specific plumbing insurance coverage.