Blog>Trade>Benefits>What insurance do plumbers need?
Last updated: 13 May 2024
What insurance do plumbers need?
A plumbers' insurance policy is made up of a number of covers. We explain what you need to include (by law) and what you should include to protect you, your business, and your assets.
As is the case with many trades, your day-to-day work as a plumber comes with a variety of different risks. These risks have the potential to be financially crippling without adequate insurance.
But what should you include within your plumbers’ insurance policy and how can you get the cover you need at the most competitive rate? Read on and we’ll explain all.
Do plumbers need insurance?
The simplest way to answer this question is to ask whether you could afford to put things right should they go wrong. Whether you think you’ll end up actually needing it or not. Having insurance can give you that all-important peace of mind when handling tricky plumbing hazards.
Consider these scenarios:
1. You accidentally drop one of your tools, chipping a customer’s porcelain bathroom sink
It doesn’t matter how it happens, if you damage a customer’s sink, the cost of replacing it falls to you. However, with insurance in place, the cost of fixing accidents like this is covered.
2. Your work tools are unfortunately stolen, making it impossible for you to complete the jobs on your schedule
Without insurance, the cost of replacing your work tools would be from your own pocket. If your work tools are insured, the cost of replacing them (and getting you back on the job) is covered.
3. One of your team accidentally slices their finger with a pipe cutter while at work
As an employer, you are legally obliged to have employers’ liability insurance. This is to cover you against the cost of damages, which includes any resulting compensation claims.
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What insurance does a plumber need by law?
A plumbers insurance policy typically includes a range of different covers, which you can pick and choose to suit the needs of your business.
If you’re hoping to grow your plumbing business and employ others, you need employers’ liability insurance. It is one of the covers you are legally obliged to have within your insurance policy.
You will also need to make sure you and your team are up-to-date with current health and safety rules, otherwise, you risk invalidating your policy. That is, it wouldn’t pay out if you made a claim.
Why you need plumbers’ liability insurance
Public liability insurance for gas engineers and plumbers should form another key type of cover within your insurance policy.
Plumbers’ liability insurance is not a legal requirement; however, it will protect you and your business from the cost of a third party making a claim against you for loss, damage, or injury.
A third party could be a customer, a member of the public, or a fellow tradesperson working alongside you or your team onsite.
For example, following a job at a customer’s home, the homeowner calls to inform you there’s water pouring through the ceiling.
Errors can be costly, especially when water damage is involved. Of course, with insurance, your business is protected from the heavy cost of potential claims.
Other reasons to have plumbers’ public liability insurance:
It’s required by many trade associations
If you want to take on work as a contractor, most reputable firms will ask for proof of your insurance documents
Local authorities will generally ask for a minimum cover level of £5m before you can tender for work
What other insurance does a self-employed plumber need?
So far, we’ve learned there are some covers you’re legally obliged to have. That includes employers’ liability insurance if you employ others. There are also some that will help your business to thrive (public liability insurance).
However, there are additional types of cover you can include within your plumbing insurance policy to make sure your business is fully protected. This can include (but is not limited to):
Business interruption insurance– if an unforeseen event means you’re unable to operate, this cover will help to compensate for your loss of earnings
Business life insurance – if something happens to you or other key people in your company, this cover will help your business to keep running
Contract works insurance – if work you’ve already done gets damaged/destroyed and needs to be redone, contract works insurance will help to cover the cost
Business van insurance– insurance for your work vehicle to cover you in the event it is stolen or damaged
Tools and equipment insurance– should your tools or equipment be lost, stolen, or damaged, this cover will help to shoulder the cost of replacements
Commercial property and contents insurance– to help protect your business premises and the contents within them
Personal accident cover – to help protect your income if you’re unable to work due to illness or injury
If you offer plumbing design or advice as part of your service, consulting on plans, or creating blueprints, for example, you may wish to include professional indemnity insurance in your policy. This will protect you should a claim be brought against you for damages caused by the advice you’ve given.
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Save 20% on specialist trade cover as a Checkatrade member
How much does plumber insurance cost?
Plumber insurance costs can vary depending on your policy. Other factors are which type of cover you wish to include (as outlined above), the risks involved, and your location.
Depending on your type of employment, you might even need a different form of plumber insurance policy. To get an idea of what you can afford to spend on your insurance, you can read our blog all about plumber salaries.
To take advantage of competitive rates on your plumber insurance policy, become a Checkatrade member and start saving.
Save money on your plumber insurance as a Checkatrade member
Whether you need plumbers and pipefitters insurance or gas fitter insurance, you can save money on your premiums as a Checkatrade member.
We’ve secured partnerships with some of the top names in the industry. We get our members exclusive discounts, including 20% off public liability insurance trade cover.
Cover is specifically designed for tradespeople, tailor-made to your needs, and arranged in a simple and straightforward way
You also have the flexibility to add optional extra covers too, giving you complete peace of mind
Save on your business insurance and enjoy a range of other benefits too
Checkatrade members have saved on average, £470 a year on business essentials*
*Year runs from April 21’ to March 22’. Spend based on 12,505 members. Discounts differ depending on the partner. Products range from low value items to high value items. Total amount spent on Selco is estimated at £42,380,838 by 7,298 members and based on average savings per member from 2020/21. 10% discount. Some exclusions will apply on products.
