Does your company’s present insurance policy protect you adequately? If someone is injured at one of your work sites, or if a client’s property is damaged, your company may be held responsible. Are you willing to take the chance that your current policy covers all of the circumstances that could arise? Or do you need customized liability coverage for plumbing companies?

Whether you run a multi-million-dollar plumbing company or a small family-run business, you will need to protect yourself. In the plumbing business, certain risks are inherent, and some aspects are out of your control. Even if you are meticulous about following safety protocols, someone could sustain an injury on a job site. An accident could damage your vehicle, or expensive equipment. Plumbing involves water, so there is an ever-present risk of slip-and-fall accidents, or of water damage. If you have inadequate coverage, you could be sued for liability, and the resulting lawsuit could ruin your business.

Accidents Happen

One small-town Ontario plumbing contractor, "Bernie,” had good skills and a charming way with customers, which led to the expansion of his company from a one-man operation to a thriving business with three other employees. Although Bernie trained his new employees well and their work was of good quality, eventually one of them made an error in judgment which led to disaster. The employee installed plumbing in a new condo, but soon afterwards a connection behind the wall came apart, and caused extensive flooding on two separate floors. Fortunately, Bernie had had the foresight to obtain customized liability insurance which covered the cost. Otherwise, his company wouldn’t have survived.

There are many other examples of plumbing mishaps and disasters. A plumber in St. Catharines fell from a height while working at a FreshCo. store and sustained serious injuries. A plumber in Edmonton ignited some insulation with his torch, and 50 of 52 units in a condo were badly damaged, resulting in more than $13 million in repair costs. A plumber in Red Deer was asked to clean copper manifold headers with silver soldering. As he was directed, the plumber poured caustic soda beads into some sulphuric acid, expecting it to neutralize in a few minutes. Instead, it exploded in his face; he suffered third-degree burns and was permanently blinded.

A moment’s carelessness, an error in judgment, or a single spark can cause an accident. Make sure your insurance protects your company from liability lawsuits.

Customized Commercial Insurance

All contractors need to be insured. However, the "one size fits all” approach of most insurance company policies may not be adequate for your situation. Many plumbers avoid working with an insurance broker because they think it will be costly. In fact, having an insurance plan designed especially for your company can save you money in several different ways. First, you will not be paying for coverage that you don’t need, only for the coverage that you do. Second, when you apply for customized insurance, your brokerage will perform a comprehensive risk analysis. During this process, you may discover ways in which you and your employees can mitigate risk, lowering the cost of your insurance premiums. Third, having the right coverage can prevent you from having to face a lawsuit and pay out costly damages.

Work with a broker to design customized liability insurance for your plumbing company. It could be the best decision you’ll ever make.