Many states require you to provide proof of your business’s liability insurance when applying for or renewing a plumbing license. It is common for plumbers to obtain general liability plumbing insurance and license bonds under state regulations. Your business supports your family, lifestyle, and retirement plans, so it makes sense to insure it. You have invested thousands of hours into and built your business, so it makes sense to protect it.
Additionally, many of your employees depend on your business’ success to support their families. To protect their investment, many construction companies increase their plumbing insurance limits or purchase comprehensive insurance when their business matures so that accidents cannot materially affect the company. Plumbers who perform commercial work are almost always required to carry liability insurance, although some residential plumbers do not have to worry about this as much.
Workers’ compensation insurance is usually required for businesses that have employees. Commercial customers must have general liability insurance, commercial auto insurance, and workers’ compensation insurance before work begins. An employee injured on the job is covered under this policy, along with lost wages, while the employee cannot work.
The majority of plumbers have a work truck or van they use to transport the tools, equipment, and materials to each job site. Workers’ compensation coverage is required by law in most states and by most commercial customers. A commercial auto policy protects your business against liabilities caused by your work vehicles. Additionally, these vehicles are used for transporting tools, equipment, and materials for different projects.
Plumbers commonly need a significant amount of equipment to run their businesses. From small hand tools to trenching equipment, it can also be covered if it is damaged due to a collision or other cause. In the event of an accident or theft on a Jobsite, contractors’ equipment insurance covers the loss or damage of tools or equipment. In the event of a loss, you can purchase replacement tools and equipment with this coverage.