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What is plumber insurance?

Plumber insurance is precisely what it sounds like - an insurance policy created for the specific purpose of protecting plumbers from the risks inherent to the profession. And given the nature of working with piping and water systems, these risks tend to be significant from a liability, damage and injury potential standpoint. 

In some Canadian provinces, plumbers are legally required to have a minimum level of general liability coverage in order to operate. But even in places where plumber insurance isn't a mandatory requirement, it is highly recommended for plumbers to get coverage. This is primarily because of the financial protection that an insurance policy offers, but also because some clients will refuse to work with a plumber that cannot produce proof of insurance.

Continue reading to learn more about the types of insurance coverage plumbers should have, the expected cost for a policy and why having plumber insurance can be so useful for Canadian business owners and contractors in the industry.

What plumber insurance includes

Plumber insurance is a customizable product that can be amended to include a variety of coverages. The following types of coverage represent a standard plumber insurance policy. 

• General liability: This covers bodily injury or property damage that occurs as a result of your plumbing services. Since plumbers work with water, the latter peril is ever present, making this type of coverage the cornerstone of plumber insurance.
• Professional liability insurance: Also known as errors and omissions insurance, this protects you from claims related to mistakes or negligence in your work. So, if one of your installations was improperly completed and a client sues you for damages, this type of coverage helps with the legal fees and replacement cost of damaged property.
• Tools and equipment insurance: This type of protection covers the tools, machinery and equipment you and your team use. If something is lost, stolen or broken, your insurance company will reimburse you for the cost of replacing it. As a point of interest, anything valued at less than $1,500 is considered to be a "tool," while items valued at a price greater than $1,500 are considered to be equipment.

Recommended add-ons for plumber insurance

Apart from the regular coverages included in plumber insurance policies, you should also consider getting the following add-ons. These may not be applicable to all plumbers in Canada, but are commonly purchased by those in the industry.  

• Commercial auto insurance: Most plumbers have a business vehicle, and those who do will need commercial auto protection. Even if the vehicle you use for business is insured for personal use, you'll need to add commercial coverage to avoid having your claims rejected.  
• Commercial property insurance: If you own an office or storage facility for your tools, you should consider getting this insurance. It will protect your property and assets if they are damaged from accidents such as fire, floods or break-ins.

There may be additional add-ons worth considering, depending on the specific characteristics of your plumbing business. The best way to understand whether or not an add-on is worth purchasing is to speak with your insurance provider. 

Common types of plumber insurance claims

Plumbing insurance can protect you from a variety of unexpected expenses that could potentially harm your business. Some common types of claims filed by plumbers in Canada include: 

• Injury claims: If a customer or third-party is injured on the job site, plumber insurance can cover the cost of medical expenses and legal fees.
• Property damage claims: This is unsurprisingly the most common type of insurance claim made by plumbers in Canada. A single burst pipe can cause immense damage to a client's property - and could even damage adjacent properties if you're working in a commercial building, apartment or condo. The cost of repairs and replacements are covered if you have plumber insurance.
• Equipment damage or theft claims: Tools and equipment are essential for plumbing work, but they can also be expensive to replace. Insurance coverage can help cover repair or replacement costs when something breaks or is stolen.

How much does plumber insurance cost?

It's difficult to estimate how much a plumber will pay for insurance in Canada. This is because there are so many variables that go into determining their insurance premium. For example, the number of empoyees the business has, the type of clients it works with and the amount of revenue it generates will all have a substantial affect on the cost of an insurance policy.

A plumbing contractor might expect to pay about $1,500-$2,500 per year for plumber insurance, while a company with multiple employees will usually pay a bit more, especially if multiple vehicles need to be insured. 

This estimate, however, may not be applicable to your plumbing business. Some plumbers may pay less, others more. It depends on how much coverage you opt to get and the characteristics of your business. The only way to know for sure how much plumber insurance will cost is to get a quote for an insurance provider.

How to get the cheapest plumber insurance rates

Though the cost of plumber insurance is largely determined by things inherent to the nature of your business, there are some things you can do to ensure you get the best available price. Here are some steps to take when selecting a policy.

• Shop around: Don't settle for the first quote you receive. Compare rates from multiple insurers to find the best coverage at the most affordable price. Online comparison tools can simplify this process.
• Bundle policies: Many insurers offer discounts if you bundle multiple policies together. Consider purchasing general liability, property insurance and professional liability from the same provider to save on premiums.
• Increase deductibles: Opting for higher deductibles can lower your premium costs. Just ensure that you can afford the deductible amount in case of a claim.

Plumber insurance in Canada: What you need to know

Each province in Canada has its own regulations and requirements for plumber insurance. However, there are some general guidelines to keep in mind: 

• Worker compnesation: If you have employees, you may be required to register with the workers compensation insurance board in your province. This insurance is often mandatory, in which the employer pays a premium to their respective provincial board in exchange for insurance for their employees. If a worker is injured while on the job, they will get compensation and any required treatment paid for.
• Proof of insurance: In many cases, plumbers will need to provide proof of insurance before they can obtain or renew their business licence. The terms of the requirement depend on the province the plumber operates in.
• A business asset: It's not just the legality of having plumber insurance that is useful (or, in some cases, necessary). Many clients, especially commercial clients, will need to see proof of insurance before hiring a plumber. This is because the financial risk of water damage can be so significant in office buildings or apartments. In this sense, plumber insurance not only protects your business, it also helps ensure your viability as a contractor.