When conducting any plumbing works, it is important to be holding the appropriate insurance to ensure you are protected financially in the event of property damage, workplace injury or illness, commercial motor accidents, and any other unforeseen events. The right cover will also ensure you adhere to contractual requirements, are legally compliant, display professionalism, ensure business continuity, and provide peace of mind to your customers.
Plumbers’ Liability Insurance, in particular, provides necessary financial protection in the event of claims made by a third party that you or your business are responsible for following property damage or bodily injury. There are also additional extensions required for Plumbers in Victoria to comply with the Ministerial order including a 6 year warranty to rectify defective workmanship. Find out more about this form of cover and why it is essential for plumbing businesses.
What is Liability Insurance?
A Liability policy includes cover against third party claims of negligence that lead to injury or damage, or death. In the event you offer “professional services” this may also extend to financial loss. Liability Covers offer cover for compensation for claims by third parties, as well as cover of legal costs, if necessary, to ensure you are protected.
Liability cover can include:
Public Liability Insurance cover can protect your business in the event of any claims of personal injury or property damage by a third party that may have arisen as a result of negligence. In this case, a third party may include a customer, supplier, or member of the public.
If your business offers any form of advice or consulting services, this insures you for financial consequences in situations where errors or omissions in your advice cause financial loss for the client.
Most businesses have a Products Liability exposure as Products can be defined as anything produced, installed, supplied, sold or altered. This protects businesses against claims or allegations of loss or damage caused by their product.
Management Liability Policies are designed to cover Directors and Management against claims made from customers, clients, shareholders or staff following Managements negligence and is very important in todays litigious environment as criminal prosecution for civil litigation can be initiated by, for example, your creditors, shareholders, customers, employees, competitors and many Government bodies, including the Australian Taxation Office.
Importance of Plumbers’ Liability Insurance
Plumbers’ Liability cover is mandatory in some states in order to operate as a licensed plumber. This type of insurance offers financial protection in the event of claims following property damage and bodily injury, and can assist with legal fees if necessary. While also being required for legal compliance of plumbing work, carrying this cover offers valuable protection for a Plumbing Business its employees and licenced Plumbers.
Victorian Plumbers’ Liability laws
In Victoria, the appropriate Liability cover is necessary in order for licence renewal. Ministerial Orders state that this is needed for any plumbing work:
- With a total value of $750 or more
- Carried out on below ground sanitary drains
- Involving any gas-using appliance or gas piping
- Involving cooling towers
There is a minimum requirement of $5,000,000 Public Liability Insurance cover, as well as $50,000 Consumer Protection Insurance, or $100,000 for commercial work.
Consumer Protection Insurance
Consumer Protection cover is required by the Victorian Building Authority alongside Liability cover. This form of insurance covers rectification of defective plumbing work that does not comply with standards, as well as trade practices liability, and cover for loss or non-completion of work.
This ensures the consumer is protected from financial losses or harm resulting from various transactions, and that they are treated fairly.
Comprehensive Plumbers’ Liability Insurance in Australia with Atlantic Insurance
Atlantic Insurance Brokers is a leading Insurance Provider for plumbers, having successfully offered protection to plumbing businesses across Australia for over 25 years. Throughout our years in the industry we have developed a strong understanding of the various risks and insurance needs of plumbers, and are experienced in arranging comprehensive and competitive cover.
Your Plumbing Insurance is in good hands with the expert team at Atlantic. Contact us to arrange a quote for your tailored insurance plan.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.