Insurance for Plumbers is important, protecting your business against loss and ensuring it continues to thrive. Purchasing inappropriate coverage, however, can mean your business is not adequately protected, or that you are paying more than you should for inadequate protection.
To uncomplicate the insurance process and ensure you can defend against risk, here are 5 common mistakes that you should strive to avoid when purchasing Plumbers’ Insurance.
The Dangers Of Insufficient Plumbers’ Insurance
Carrying improper Business Insurance can be extremely detrimental for Plumbers, potentially leading to a range of concerns that may put your Plumbing Business at risk. When misfortune strikes, you may find that you are unable to receive cover as your policy does not offer compensation for the specific circumstance. This may lead to financial loss or an inability to defend against legal liability.
Poor Plumbing Works Insurance may also affect your professional reputation as a result of failure to fulfil professional obligations, leading to noncompliance penalties and loss of clients. You may inadvertently breach contractual obligations due to an insufficient level of cover, for example carrying less than the required $20 million of Public Liability Insurance that shopping centres require you to carry to conduct work onsite. This may also mean you are unable to renew your Plumbing License, causing business interruption, greater loss of income and financial hardships.
To ensure your business is financially protected in any situation and compliant with regulations, it is important to be cautious when purchasing coverage.
5 Common Mistakes To Avoid When Purchasing Coverage
1. Inadequate Risk Analysis
A good Plumbing Insurance Provider will conduct a risk analysis to ensure all common exposures are understood, and offer policies that provide comprehensive, tailored protection that is relevant to your specific situation. Poor risk analysis may result in your cover requirements being underestimated, therefore leaving you open to certain exposures.
2. Accepting The First Policy You Encounter
Comparing policies and researching insurers is important to understand the various coverage options available, including differences in limits, exclusions, deductibles and premiums. A good Insurance Broker will save you time on research and offer the most appropriate Insurance Products that are available to you.
3. Careless Policy Review
When reviewing policies, pay close attention to the exclusions and limitations and carefully consider whether your specific services or unique risks associated with Plumbing work are protected.
If anything within the policy is unclear, be sure to receive clarification. Take the time to understand the terms, conditions, and exclusions, coverage limits, deductibles, the claims process and any obligations you may have to ensure the policy is upheld. It is important to maintain clear communication with your provider.
4. Overlooking Important Policies
Some policies are uniquely important to Plumbing Businesses, with potential risk of noncompliance with regulations if they are not carried. The Victorian Building Authority advises all Plumbers carry the insurance laid out in the Ministerial Orders, including Plumbers’ Liability coverage.
A good Broker will also advise on the recommended policies for your business. Find out more about the essential insurance considerations for Plumbers here.
5. Out-of-date Cover
Especially as your business grows and expands, it is important to reassess the policies that you carry and determine whether they remain relevant or if they require updating, as well as determine if there are new areas that now require cover. Failure to do this may mean your cover does not reflect your current business operations, leaving you underinsured.
Comprehensive, Personalised Plumbers’ Insurance With Atlantic
Atlantic Insurance has been catering to the Insurance needs of Plumbers for over 35 years, dedicated to ensuring you are able to protect your business assets in any situation. Our experienced Client Managers offer expert advice to educate around the best policies for your specific business requirements, with personal claim handling that reduces stress and guarantees efficiency.
For tailored Insurance Products that offer comprehensive cover with competitive prices, contact us today and receive a quote.
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.
