For plumbers in Australia, whether you are a sole trader, subcontractor or a wider plumbing business there are many risks to consider in the industry, with a range of required and recommended insurance types. In some states in Australia, without a Certificate of Currency you may even be unable to apply for or renew your Plumbing License.
Understanding which policies or insurance types you should have can be quite confusing, with a range of options available to select from. Atlantic Insurance would like to make the process of deciding on the appropriate insurance requirements easier by laying out exactly what is compulsory and what other Plumbing Insurance should be considered.
Here is a guide to both the essential and suggested insurance considerations for plumbers.
Compulsory Plumbing Insurance in Victoria
To operate as a licensed plumber in Victoria in particular, it is stated by law that the necessary insurance must be carried. The Victorian Building Authority explains there are two separate Ministerial Orders that must be followed for a plumbing license to be issued, and a Certificate of Currency must be provided.
Victorian Plumbers Insurance provides Liability coverage in accordance with the ministerial order up to the limits outlined within the Plumbers Liability Policy during the period of insurance.
This provides coverage up to the policy limits for:
- Liability to pay to rectify any plumbing work due to “defects” for up to 6 years beyond completion where these defects include working with improper or unworkmanlike manners, use of unsuitable materials, work that does not comply with legal requirements and a lack of care or skill applied.
- Any trade practices liability, which includes any liability that is a result of practice that is not in compliance with the Trade Practices Act 1974.
- Public Liability cover, which is any liability as a result of injury to a third party as well as loss or damage to their property that is caused by you.
- Completed work liability, which is any liability as a result of injury to a third party as well as loss or damage to their property that is caused by the plumbing work.
Even if you are located in a state where the above is not compulsory, it is still important that Public Liability Insurance is considered.
Other recommended considerations
1. Contract Works Insurance
Contract Works cover protects contractors against any accidental loss or damage to their project in the event of fire, storms, other natural disasters, theft or malicious damage. This may be contractually required to carry, but if it is not required it is still a good idea to consider this policy to manage risk associated with accidental loss or damage outside of your control.
2. Income Protection Insurance
This policy can assist you in the event that an accident, injury or illness has left you unfit for work. Instead of experiencing the financial strain of losing your income for a period of time, this form of insurance can allow you to receive up to 70% of your income (before tax).
3. Commercial Motor Insurance
For any vehicles that are necessary to carry out your work, Commercial Motor cover can offer protection for your vehicles to ensure they can be repaired or replaced in the event that they become damaged as a result of an accident. This cover also provides protection against a Third Party Liability claim if another vehicle is involved in the incident.
4. Plant and Machinery Insurance
If you own equipment or machinery such as excavators, skid steers or forklifts, this policy will ensure they are covered in the case of theft, damage or third party liability.
5. Tools Insurance
Other than Plumbing Insurance, tools Insurance is important to consider as in the event of accidental loss, damage or theft of your tools, this policy ensures you are able to get back to working as soon as possible. Without this insurance, you may not be able to repair or replace your tools as easily and this can lead to financial loss and business interruption.
Plumbing Insurance with Atlantic Insurance
Atlantic Insurance has been a leading insurance provider for plumbers for over 25 years, over time having developed a strong understanding of the various risks and insurance needs in the industry. We are experienced in arranging comprehensive and competitive Plumbers Liability Insurance along with other common insurance for plumbers.
Your Plumbing Insurance is in good hands with the experienced 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.
