Robinsons Insurance Agency Blog
Liability Insurance for Plumbers
Among the contractors, plumbers, electricians, and HVAC contractors are mostly regulated so they are required to acquire and maintain a license and insurance. Each state has a regulatory body to handle licensing requirements. The Texas State Board of Plumbing Examiners or TSBPE for example is the agency responsible for licensing plumbers in Texas, requires all master plumbers to furnish them with a current certificate of insurance. Plumbers must carry general liability insurance for claims of property damage or bodily injury, with coverage of at least $300,000 in a one-year period. But we actually recommend to maintain at least $1,000,000 coverage in general liability insurance as that is the standard limit of insurance required if you get hired by a General Contractor or work on a big project.
Types of Plumbing Licenses:
There are at least four types of plumbing licenses namely: Tradesman Plumber-Limited, Journeyman, Master Plumber, Plumbing Inspector, and Plumber's Apprentice. The usual eligibility requirements are high school diploma or General Equivalency Diploma (GED), a valid government-issued photo ID, and fingerprint data.
To get licensed, an aspiring plumber must meet eligibility requirements and take an examination for a fee. Licenses renew every 1-2 years and usually require completing continuing education (CE) course credits. Plumbers and Inspectors licensed in Texas must take a Continuing Education Course of six contact hours each year before renewing their license, which may be taken in a live course or via online options.
General Liability Insurance Coverage:
The general liability policy for plumbers covers the business liability to third parties for negligence and errors in providing services that result in loss caused by occurrences during the policy period. An occurrence means an accident, including continuous or repeated exposure to substantially the same general harmful conditions that begin during the policy period. It also includes by an error by the plumbing contractor that caused unintentional harm or damage. One example is when a homeowner tries to sue for damage most probably caused by re-piping during a bathroom renovation. In this case, the general contractor and the homeowner will file a claim against the plumber’s insurance.
Coverage A: Bodily Insurance and Property Damage Liability
The insurance company will pay for the damaged the plumber is legally obligated to pay because of bodily injury or property damage to which the coverage applies. The insurance company has the right to defend the plumber against any lawsuit seeking those damages for covered cause of losses. The insurance company usually investigates any filed claim against the plumber and his/her business so the insurance company has the discretion to settle claims before it goes further to a more expensive lawsuit.
For the loss to be covered, the bodily injury or property damage should have taken place in the coverage territory during the policy period and the insured has no prior knowledge of the claim before starting the policy. The damages because of bodily injury include damages claimed by any person or organization against the plumber for care, loss of services or death resulting at any time from the bodily injury.
Coverage B: Personal and Advertising Injury Liability
The insurance company will pay for those sums the plumber becomes legally obligated to pay because of personal and advertising injury. It usually includes lawsuit or claims related to invasion of privacy, copyright infringement, libel, and slander. Common exclusions under this coverage are intentional violation of the third party's rights, criminal acts, breach of contract, and wrong description of prices.
Coverage C: Medical Payments
The insurance company will pay for medical expenses for bodily injury caused by an accident on the plumber’s business premises including the jobsite of the plumber. The accident should have taken place in the covered territory and during the policy period. The medical expenses should have been incurred and reported within one year of the date of the accident and the injured person submits to examination at the expense of the insurance company by their chosen physician if required. The limit will pay for first aid administered at the time of the accident, necessary medical, surgical, X-ray and dental services. It will also pay for prosthetic devices and necessary ambulance, hospital, professional nursing and funeral services.
How Much Does Plumbing Insurance Cost?
The cost of a commercial general liability policy can range from $500.00 on the low end for a sole proprietor with no employees in a low-risk industry or location to over $30,000.00 for multi-million-dollar coverage for a new construction builder in certain areas. The general liability insurance cost for a plumber depends on the size of the business, the number of employees, amount of subcontracting cost, type of projects the plumber usually deals with and history of claims for the past three years. An owner operated plumbing business should not exceed three thousand dollars a year in premium.
At Robinsons Insurance Agency LLC, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (888) 254-7350. You can also request a free quote by CLICKING HERE. Coverage discussed in this article is not guaranteed. Please contact our agents to help you understand your coverage. We are happy to help you!
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