Did you know that the trade industry as a whole is experiencing a skills shortage?
According to a recent report by underwriter Chubb, instances of residential water damage are rising rapidly and are now the most common and costly risk for Australian households.
In fact, the average claim for water damage has increased by a staggering 72% in the past 5 years from just $17,637 in 2014 to $30,361 in 20181.
Even more alarming, homeowners in Victoria and Western Australia are 20% more likely to make a claim for internal water damage and although the specific reasons behind this are still under investigation, differences in construction methods and building codes could be a significant contributing factor2.
Australian households utilise more plumbed-in appliances than ever before, and new home builds see more bathrooms and wet areas being included on upper levels, which is expected to contribute to the spike in water damage claims and above two-storey exclusions included in policies for plumbers. So what are the implications of this on the plumbing industry and what do you need to know for your own business insurance?
Undoubtedly, rising residential water claims place greater pressure on the plumbing profession by increasing demand for services to rectify or prevent these issues. However, this can also have implications on your own personal business insurance, with many plumbers experiencing increasing premiums making much needed insurance costly and less accessible, particularly for sole traders and small businesses.
You might also be experiencing or have recently experienced a reduction in cover, where above two-storey exclusions are in place, or perhaps you have not been able to secure appropriate cover altogether. This can be detrimental, particularly in Victoria, where plumbers are required to have a specific level of cover in order to obtain or renew their licence. And what if one of these costly residential claims finds you liable for the damage caused to the property?
Insufficient or inappropriate cover could have a significant financial impact on you and your business.
Fortunately, at Marsh Advantage Insurance, we arrange cover which offers automatic errors & omissions cover, no height restrictions and policies satisfy the licensing requirements under the Victorian Building Authority3.
Our team has arranged insurance for thousands of plumbers across the country and has come to understand the unique requirements of the industry. We have strong experience in the market, allowing us to obtain the appropriate cover on your behalf.
For more information on the implications of rising residential claims or to ensure you have appropriate insurance cover in place, please contact our expert plumbers team at 1300 300 511.
1 Source: Chubb, 2019. Get Smart About Water Leaks. Page 5
2 Source: Chubb, 2019. Get Smart About Water Leaks. Page 8
3 Marsh can arrange insurance policies which comply with the minimum insurance requirements contained in the Licensed Plumbers General Insurance Order 2002, Licensed Plumbers (Type B Gas fitting Work) Insurance Order or Licensed Plumbers (Private Plumbing Work) Insurance Order 2002
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. 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 19/135