The Importance of Plumbers Insurance in Risk Management

Insurance for Plumbers is essential as it protects your business against loss and ensures it will continue to thrive. However, a common mistake many plumbers make is to have inadequate insurance coverage, resulting in your business not being adequately protected. Read on to find out what plumber insurance you should consider.

What happens if you don’t have adequate plumbers insurance?

If you have insufficient or improper business insurance, you may be putting your plumbing business at risk. If misfortune strikes, you may find that your Insurance falls short or worse yet,  fails to trigger or respond appropriately.  Unfortunately, this could lead to financial loss or an inability to defend against legal liability. 

If you don’t have adequate plumbing insurance, your professional reputation may be at risk, and you may be unable to fulfil your obligations. This could result in loss of clients and in certain circumstances prevent you working at certain locations.  For instance, not having  $20 million of public liability insurance could prevent you from being able to work in Shopping centres, Council buildings, Hospitals and Retirement Homes or the like.  Or worse yet if you do work in these areas and your Insurer is not aware, in the case of a claim this could prove to be problematic.  

Compulsory Plumbers Insurance Victoria

By law, if you operate a plumbing business in Victoria, you must have the necessary insurance to be a licensed plumber. According to the Victorian Building Authority, there are Ministerial Orders that must be followed if a plumbing licence is to be issued and a Certificate of Currency can be provided.

Atlantic Insurance can arrange Plumber’s Liability Policies and forward your Certificates of Currency to the Victorian Building Authority. These provide coverage up to the policy limits for:

• Liability up to the prescribed amounts to pay to rectify any plumbing work due to “defects” for up to 6 years beyond completion. These defects can include, use of unsuitable materials, work that does not comply with legal requirements and a lack of care or skill applied.
• Any trade practices liability can include any liability resulting from practice not complying with the Trade Practices Act 1974.
• Public Liability covers any liability resulting from injury to a third party and loss or damage to their property that you or anyone in conjunction with your business may  cause.  Even if you operate a plumbing business outside Victoria, we recommend you still consider public liability insurance.

How plumber’s insurance reduces risk

A good plumbing insurance provider will conduct a risk analysis to ensure all common exposures are understood. They will also be able to 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, leaving you open to particular exposures and in certain circumstances,  potentially not Insured for the works you could be carrying out.

How Atlantic Insurance can help you with Plumbers Insurance

With decades of experience with trade insurance policies, our Client Managers know what to look for when customising plumbers’ insurance policies that provide adequate coverage without breaking the bank.

Here are our tips:

1. Don’t just accept the first insurance policy you find: We take the time to compare policies and research insurers to understand the various coverage options available and also factor in limits, exclusions, deductibles and premiums. 
2. Review your current policies: When reviewing your current plumber’s insurance policies, we pay close attention to the exclusions and limitations and carefully consider whether your specific services or unique risks associated with Plumbing work are protected. We receive clarification if we find anything unclear within the policy. We take the time to understand the terms, conditions, and exclusions while also investigating your coverage limits, deductibles, the claims process and any obligations you may have to ensure the policy is upheld.
3. Avoid overlooking important policies: Plumbing businesses have specific requirements in Victoria. You need the right insurance policies to avoid being held in noncompliance with regulations. The Victorian Building Authority advises all Plumbers to carry the insurance laid out in the Ministerial Orders, including Plumbers’ Liability coverage.
4. Out-of-date cover: As your business grows and expands, it is essential to reassess your policies. We can help you determine whether they remain relevant or require updating while uncovering any new business areas that now require cover. Failure to do this may mean your cover does not reflect your current business operations, leaving you underinsured. 

Personalised and comprehensive plumbers insurance with Atlantic Insurance

Atlantic Insurance has been catering to the Insurance needs of Plumbers for over 35 years. We are dedicated to ensuring you can protect your business assets in any situation. Our experienced Client Managers offer expert advice to educate you on 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 coverage at 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. You 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.