Natasha Golden, Principal Insurance Broker for the Marsh trades’ team, answering your questions on plumbers’ insurance.
Whether you’re a new employee looking for plumbers’ insurance or reviewing your policy, this article can help you find cover that’s right for your plumbing business.
Most plumbers will agree that without the proper attention to the prep stage of your work, you could face issues down the track. The same goes for your liability insurance.
Before comparing new insurance solutions, gain a strong understanding of your risks.
Jot down all the day-to-day risks. Make sure to include those that may occur on less frequent services. Remember, while many plumbing risks may involve damage or injury, they can also be in relation to client product advice offered as part of your service.
TIP Not all public liability insurance policies will cover plumbers for work completed on buildings over two-storeys high. Be sure to include this in your risk assessment if you or a licensed plumber and your business performs this type of work.
As well as reviewing your risks, it’s important to know the insurance requirements in your state or territory.
Comparing insurance policies
With your risk assessment in hand, it’s time to find an insurance cover best suited to you.
Things to review when obtaining quotes:
- Limit of liability - This is the maximum amount that can be received under the insurance policy for a successful claim.
- Excess - The sum paid by you in the event a claim is made on the insurance policy.
- Inclusions - Does the policy include cover for all your business risks? For instance, claims cover for providing the incorrect product advice or liability cover for construction sites over two storeys.
- Exclusions - These are situations or events not covered under the policy. Insurance providers can offer different cover terms in their policies, so through research, you may find a policy that’s more inclusive to your business risks than others.
All this information and more can be found in a policy’s Product Disclosure Statement (PDS).
TIP Be aware that insurers can often assess domestic and commercial plumbing differently so ensure you correctly declare your activities.
Don’t decide on premium alone
The price of your insurance plays a big role when comparing different policies, however, plumbers should consider a side-by-side comparison before making a decision.
Insurance providers can base a policy’s premium on the risks they take on and having a high number of exclusions can reduce these risks, which should result in a lower premium.
If you want to know more, ask
Choosing a liability insurance policy for your business is an important decision and can sometimes mean the difference between being covered for a specific risk or not. If you have questions that can’t be found online, give your insurance advisor a call to ensure you thoroughly understand the insurance solution on offer.
At Marsh, we have a dedicated team of expert insurance advisors that are available to help answer your questions in respect of your insurance requirements including plumbers insurance.
To speak to one of our team members call 1300 300 511.
Notice: Master Plumbers Insurance Brokers (Aust) (MPIB) is a trading name of Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369). MPIB arranges the insurance and is not the insurer. This article contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. When arranging Public Liability Insurance, Marsh act under binding authority on behalf of Pacific Underwriting Corporation Pty Ltd (ABN 77 091 225 535, AFSL 237 270), who act as agent of the insurer, Chubb Insurance Australia Limited (ABN 23 001 642 020, AFSL 239 687). For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire the product, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh Advantage on request. The Master Plumbers and Mechanical Services Association of Australia (MPMSAA) receives a financial benefit when a policy is arranged by Marsh Advantage, enabling it to continue to provide further services to the plumbing industry. LCPA 20/130