What insurance should a plumber have?

If you work as a plumber, it’s important to ensure your business is correctly set up with the right insurance. If you are confused about what you need, this post will help explain exactly what insurance you should have.

Does it matter how my business is set up?

It doesn’t matter how your business is set up or whether you work as a sole trader, a partnership or limited company – it’s important to consider the right insurance for your business. The only difference is the cost, which may be a bit more for limited companies and partnerships.

Do I need employers’ liability insurance?

Employers’ liability insurance is designed to protect you in the event an employee suffers injury or illness as a result of working for you.

You are legally required to have £5 million of employers’ liability cover if you employ anyone. This includes trainees, part-time staff, apprentices and volunteers.

You can be fined £2,500 for every day you don’t have this insurance.

Do I need public liability insurance?

Public liability insurance is designed to protect you and your business if something you do causes someone harm or damages their property. The affected party could be a client or a member of the public.

You may find that your trade association insists you have public liability insurance before you can join. Larger clients may also insist you have this as a term of your contract.

Public liability claims are surprisingly common and can be expensive. For example, if a job you carry out results in flood damage to a client’s home, the costs can quickly amount to thousands of pounds.

You may also need product liability insurance. This is similar to public liability cover, but it covers the products that you supply or sell, e.g. a boiler or pipes.

Do I need professional indemnity insurance?

You may need this if you provide advice as part of what you do, for example: if you offer advice about the design or specifications of a plumbing installation.

If your advice turns out to be negligent and causes damage, your professional indemnity insurance will protect you and your business against subsequent claims for damages.

Is there any other insurance I need?

If your tools are stolen or damaged, and you have no insurance, it can be expensive to replace them.

You may not be able to work without tools. This could mean failing to complete contracts, which will impact your reputation and finances.

Having tool insurance means you can replace your tools quickly and get back to work.