Ontario plumbing contractors know all too well how many potential hazards they face while on the job.
While there are things most of them do to help mitigate risk, small business insurance is still a crucial tool in their belt to help protect themselves.
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WHAT TYPES OF INSURANCE COVERAGE SHOULD PLUMBERS HAVE?
While technically there is no such thing as “plumbers insurance”, there are some coverage options that every plumber in Ontario should consider.
GENERAL LIABILITY INSURANCE
Without a doubt, this is priority 1A when it comes to coverage options for Ontario plumbers.
While commercial general liability insurance is not required by law in Ontario, it’s a must-have for any plumber looking to protect themselves from lawsuits.
What if you accidentally installed a fixture incorrectly which later caused a significant leak resulting in damage to a customer’s home?
What if while on the job you left your tools in a spot where the homeowner tripped and fell over them to cause a significant injury?
CGL insurance is there to help insulate you and your business from claims of:
- Bodily injury to others
- Property damage
- Products and installs
When a claim is made against a plumber with liability insurance, their policy can be triggered to help cover legal costs or compensation stemming from the insured peril.
COMMERCIAL AUTO INSURANCE
Most plumbers travel between job sites in their dedicated work van or truck.
Having commercial auto insurance on your policy helps cover auto-related damage and liability that a regular auto insurance policy may not provide.
If you use a vehicle for any business reasons outside of normal personal use, this is a policy option you should most certainly consider to ensure you’re covered while between jobs in addition to while on the job.
COMMERCIAL PROPERTY INSURANCE
Do you store equipment, tools, documents and products in a commercial building?
Many Ontario plumbers operate out of a home base that they use for storage and to conduct business. The safety and integrity of this building and the contents within are important to keeping business running smoothly.
Commercial property insurance is there to protect your physical business property in the event of insured perils like:
- Fire
- Lightning
- Wind
- Vandalism
- Break and enters
BUSINESS INTERRUPTION INSURANCE
If a lengthy work stoppage on a job site is a potential risk to your plumbing business you may want to consider adding business interruption insurance to your policy.
Imagine you’re in the middle of a 6-month long job that is forced to pause due to an accident or some other situation.
If you don’t have other jobs to fall back on in the meantime to keep the money coming in, you may want to consider leaning on your business interruption insurance policy to help cover lost earnings while your business is suspended due to an insured peril.
IS PLUMBERS INSURANCE MANDATORY IN ONTARIO?
No. Unlike electrician insurance, plumbers in Ontario are not required by law to have business insurance.
However, that’s not to say there will be situations when a plumber must have plumbers insurance to be hired for a job or to work on a job site.
Private businesses and property owners can stipulate any requirements they feel are justified while hiring to keep a project and people safe, one of the ways they choose to do that is by making sure all contractors are fully licensed and insured.
So while it’s not something required by law to have, in certain situations it will be something you need to have.
HOW MUCH DOES PLUMBER’S INSURANCE COST IN ONTARIO?
Like most times of small business insurance in Ontario, the cost of plumbers’ insurance depends on many factors including:
- Location of business
- Size of business
- Annual revenue
- How many service vehicles
- Years of experience
- Whether or not it’s bundled with other types of insurance
etc.,
Generally speaking, most plumber insurance policies would fall somewhere between $1000 and $2500 per year, a relatively small price to pay when compared with the devastating experience of dealing with an accident while uninsured.
Your best path forward would be to get a quote for small business insurance to protect your plumbing business to get a more accurate sense of what you could be paying for insurance coverage.
Erie Mutual Insurance proudly serves the small business insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
