Plumbers in Australia face a multitude of risks during their course of business. It doesn’t matter whether you’re a sole trader, subcontractor, or operate a wider plumbing business; a range of insurance types are required and recommended to consider. In some states in Australia, with a Certificate of Currency, you may be able to apply for or renew your Plumbing Licence.
Knowing which policies or insurance types you need can be challenging. For over 25 years, Atlantic Insurance has been a leading insurance provider for plumbers. Our experienced team has developed a strong understanding of the plumbing industry’s various risks and insurance needs. Read on to find out what liability insurance plumbers need.
What is Liability Insurance?
Liability insurance is essential for the protection of you and your plumbing business. Four main types of liability insurance can protect against claims involving financial loss, personal injury or property damage from a person, a business, an event, a contractor, or an employee.
Liability insurance covers two main financial risks: the legal cost of defending yourself against a claim and any compensation expected to be paid to the third party for injury and damage, including covering their own legal costs where permissible by law. This insurance covers your business if it is liable for damage or injury to another person or property. It also covers you for any professional services you may perform that may lead to claims of negligence and subsequent financial loss.
Liability insurance also protects your plumbing business in the event of any products that you sell or distribute leading to damage or injury to a customer, another company, or a person.
1. Public Liability Insurance
Public Liability insurance explicitly protects you and your business against any claims of injury or property damage by a third party arising from your negligence. A third party may include a supplier, customer, or member of the public.
For example, you will need public liability insurance if faulty machinery results in an incident where someone trips and injures themselves or business property. It also covers your employees when working with a customer and accidentally damages the customer’s property.
2. Professional Indemnity
Plumbing businesses should consider professional indemnity insurance if they offer advice or consulting services for their customers. This type of insurance covers any financial consequences where omissions or errors are made when advising or recommending a course of action to a customer who has suffered inconvenience or economic loss. Professional indemnity insurance also extends to contracts that have not been awarded, returns, sales, or foregone profits that your advice or recommendations have impacted.
3. Products Liability
Product Safety Australia states product liability insurance is essential under Australian Consumer Law for all manufacturers or importers that supply consumer goods in trade or commerce. Product liability insurance offers coverage if a customer seeks compensation from a manufacturer supplying a product responsible for loss or damage. This policy can also protect your plumbing business against these claims or allegations of loss or damage due to their product.
4. Management Liability Insurance
Management Liability Insurance is vital for all businesses as it covers liability claims and provides an effective defence mechanism to any actual or alleged claim. It also defends businesses against loss due to illegal, unethical management practices or mismanagement from managers or directors.
Management Liability Insurance covers claims against your company, including those against directors and officers. These claims could come from customers, clients, shareholders or even staff under the Employment Practices Liability section of a Management Liability Policy, which responds to claims of unfair dismissal, bullying and harassment.
What is not covered by plumbers liability insurance?
Plumbers liability insurance does not cover your business’s employees. To protect your employees, workers’ compensation insurance must be taken out. This insurance covers your company for any injury, death, loss, or damage caused to an employee by your business. It’s important to note this insurance will not cover unlawful business activity or deliberate acts that have purposefully caused damage or loss.
How much does a plumber’s liability insurance cost?
There are multiple insurance options available for plumbers’ liability insurance. We offer competitive, comprehensive policies at Atlantic Insurance if you require liability coverage for your business. Our tailored advice and risk management knowledge will ensure you select the suitable insurance types for your needs, with a team of Client Managers experienced in covering small, medium, and large businesses from various industries.
Plumbing Liability Insurance with Atlantic Insurance
Atlantic Insurance has been a leading insurance provider for plumbers for over 25 years. We are experienced in arranging comprehensive and competitive Plumbers Liability Insurance and other standard insurance for plumbers. Contact us today to arrange a no-obligation quote for your plumbing insurance.
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.
