Why is plumbing insurance important?

If you work as a plumber, whether that’s as a sole trader or a small, limited company, you may be wondering whether you should consider comprehensive plumbing insurance.

Is plumbing insurance important?

It can be one of the most important parts of your business operations. In some cases, you are legally required to have it, and can be fined if you don’t.

When am I legally required to have plumbing insurance?

If you employ anyone, even if they are part-timers, apprentices, or volunteers, you will need employers’ liability insurance: one of the products plumbing insurance covers. The need for cover extends to some contractors too. Check with your insurance company if you are at all unsure.

You can be fined £2,500 for every day you don’t have it and an additional £1,000 for not displaying the insurance certificate.

Are there other reasons why plumbing insurance is important?

You will need cover to protect you and your business against a variety of problems. While you may think mishaps are unlikely to happen, when they do – and you are found responsible – the costs could potentially end your business.

Consider what would happen if you accidently flooded a property. The costs of repairing the damage could include replacing carpets, furniture, electrical equipment, and even structural repairs. The bill could easily run into thousands or tens of thousands of pounds.

If someone suffers bodily harm as a result of your work, such as a broken bone, your business may have to pay for the injured person’s time off work, medical expenses and legal costs. It’s not uncommon for cases like these to amount to hundreds of thousands of pounds.

Is plumbing insurance a contractual requirement?

Having the right insurance is sometimes a prerequisite to taking on a contract. If you don’t have it, you won’t win projects. This could limit what work you can do, and possibly hurt your professional reputation.

Do I need plumbing insurance to join a trade association or professional body?

Being insured is usually a requirement for membership. Again, you can harm your reputation as a trustworthy tradesperson or business if you are denied membership.