What insurance do I need as a plumber?
Having the right insurance cover for your plumbing business can help protect you against the unexpected cost of a wide range of problems such as accidents or theft . However, knowing what and how much for your trade can be difficult, especially with so much jargon in use.
In this video, part of our Public Liability FAQ series, we answer the question ‘What insurance do I need as a plumber?’.
Is it a legal requirement to have insurance?
In some circumstances, but this depends on the nature of your business and the type of insurance. For example, if you employ anyone, you must have employers’ liability insurance. Contractually, you may also be required to have public liability insurance.
What types of insurance do I need?
Again, this may depend on your business and the types of projects you commit to. You may need:
- public liability insurance
- employers’ liability insurance
- insurance for your tools
- professional indemnity insurance
What is employers’ liability insurance?
Employers’ liability insurance is designed to protect your business if a current or former employee suffers an injury or illness as a result of working for you and successfully sues you.
You are legally required to have this insurance if you employ anyone, including part- time staff, trainees, and volunteers. You can be fined £2,500 per day if you don’t have insurance when you should.
The recommended minimum level of cover is £5 million.
What is public liability insurance?
Public liability insurance protects your business if something you do causes damage to a third party’s property or causes them injury, illness, or harm. This could include a member of the public being injured on site or their car being damaged accidentally by your tools.
You may find larger clients and your trade association will insist you have this cover as a term of your contract or membership.
It’s typical to have cover of between £2 million and £10 million, depending on the type of projects you take on.
What is professional indemnity insurance?
Professional indemnity insurance relates to professional advice you give that turns out to be negligent, causing a loss for the client.
You may need to consider this insurance if you give professional advice as part of your work, for example in relation to design or specifications.
The appropriate level of cover may vary.
What about insurance for my tools?
You should also consider insurance for your tools so they can be replaced quickly if they are lost or stolen.
The amount of cover you need will depend on the type and value of your tools. It is often in the region of £1,000 to £15,000.
Does it make a difference if I’m self-employed or a limited company?
It doesn’t matter how your business is set up: the insurance requirements are the same, although the amount you pay for insurance may vary.
Is insurance really that important?
If someone successfully sues you, their claim could amount to hundreds or thousands of pounds, including legal fees. If you can’t pay, your business and assets may be at risk.
Appropriate insurance not only safeguards against this; it creates the right impression for potential clients and brings with it peace of mind.