How much does plumbers’ insurance cost?

For plumbers operating as a limited company or sole trader, correct insurance is an essential part of running your business and ensuring you are compliant.

Do I need plumbing insurance?

In some areas of your business, it is a legal requirement. For example, if you employ anyone, you must have employers’ liability insurance. Equally, you need to insure your tools and equipment against loss, theft, or damage, and to protect your business against damage or injury claims.

If you’re not insured, the costs, time spent, and stress involved in such claims can be devastating for your business.

What level of plumbers’ insurance do I need?

By law, you must have a have a minimum of £5 million employers’ liability cover, although insurers will typically offer up to £10 million. For other areas of your business, different levels of cover may be needed. For example, insurance for your tools may only require cover from £1,000.

What factors affect the cost of my insurance?

An insurer will take account of the size of your business and the number of employees or contractors you have (if any).

You may need insurance whether you are a sole trader or a limited company, but your insurance premium may be a little more if you operate as a limited company.

They will also want to know the types of projects you take on and the clients you work with. This helps them work out the level of risk involved. For example, only repairing domestic leaks may present a lower risk than working on heating systems for high-value commercial properties.

Other factors that may be considered include your geographical location and claims history.

How much will a plumbers’ insurance premium cost?

The actual cost will depend on several factors, like those mentioned above. With any quote you receive, check what it includes to make sure you are comparing like with like and getting good value.

Be wary of very cheap policies: they may not provide all the cover you need and could include additional options that result in you paying more overall.