What is plumbers' insurance?

If you work as a plumber, you probably know you need insurance. However, what type of insurance do you need and what should it cover?

Who needs plumbing insurance?

Anyone who works as a plumber needs to be properly insured, although the type of plumbing insurance you need may vary depending on how you operate.

If you run your own limited company, you will need insurance. However, you will also need to make sure you have proper plumbers’ insurance if you are a contractor or sub-contractor.

Why do I need plumbing insurance?

Firstly, if you employ anyone, even on a part-time or voluntary basis, you are legally required to have employers’ liability insurance. It may also be needed if you have contractors who work for you.

You should also consider insurance to protect your business against accidents or unforeseen events. For example, damage or injury caused to a third party could result in you being made to pay compensation in the region of many thousands of pounds, including legal costs.

If you are unable to pay any damages, your business could be at risk.

Similarly, if you are unable to work or complete a project for reasons beyond your control, the impact on your business and cashflow could be significant, if not financially devastating.

Finally, some contractors and clients may refuse to work with you if you don’t have appropriate cover. You may also be denied membership of some trade associations. 
In addition to potentially losing contracts, this can also damage your professional reputation.

What does plumbing insurance cover?

It is designed to cover all aspects of your business including:

• Employers’ liability: designed to cover you in respect of illness or injury suffered by an employee or former employee as a result of working for you. 
• Public liability: is designed to cover any damage or injury caused by your business to a member of the public. 
• Product liability: covers any damage or injury caused by any products you make, supply, or install.
• Professional indemnity: protects you if any professional advice you provide results in financial loss or damage.

Other plumbing insurances you could consider also cover your tools, your van, and your business premises (including your home if you work from home). 
Finally, there may be other areas of your business and operations that you may need to insure, such as business interruption.