Plumbers get exposed to high risks while doing their job, and they need to get the right insurance coverage. By getting the right insurance, you will not need to make compensation from your pocket if a slip or fall results in a disaster. Here we mainly focus on professional indemnity and public liability insurance for plumbers and how they differ.
Difference Between Public Liability and Professional Indemnity Insurance
It is essential to note that public liability and professional indemnity insurance are part of business insurance covers dealing with compensation claims. The difference comes in due to the nature of the claims that the two policies cover.
For instance, public liability insurance helps protect you as a plumber against claims that clients and other people make for injury and property damages. Typically, this insurance helps cover accidents or problems that may arise when undertaking your activities on site.
On the other hand, professional indemnity insurance helps cover you for clients’ claims due to your professional negligence and errors-when you fail to deliver what the client wants, and they demand compensation. The professional indemnity insurance will help cover any damage or legal fee needed for compensation.
Do You Need Public Liability Insurance?
All plumbers, both employed and self-employed, require public liability insurance. If you are responsible for negligence and you are likely to face the claims, public liability insurance will protect you against that risk. Also, accidents might occur due to activities you were responsible for during plumbing. If such accidents lead to damages that need coverage, public liability insurance comes in and covers all the fees, including the legal fees.
Public Liability Insurance for Self-Employed Plumber
If you are a self-employed plumber, public liability insurance will protect you from claims of damage to property or bodily injury of a third party. For instance, you are at a client’s home doing the plumbing job, and their child gets hurt because of accidentally tripping over the equipment and tools you are using or falling in a trench you have dug, this insurance will cater for the medical bill and legal costs.
How Public Liability Insurance for Plumber Works
Public liability insurance helps cover illness, injury, and property damage claims by a client against you as a plumber or your plumbing business. For instance, if you did a plumbing activity, and it starts leaking, leading to a wet floor which causes your client to fall and get injured, they will demand compensation. Also, if you caused breakage to another person’s water supply pipe during your activities on-site, they will make claims. You will not be at any financial risk when you have public liability insurance since the insurance will cover those claims. This plumber insurance will also cover medical costs, legal defence, and income loss due to the claim.
How Professional Indemnity Insurance for Plumber Works
Professional indemnity insurance helps cover clients’ claims due to mistakes you made while working on a plumbing project or professional negligence. This may include poor plumbing advice that resulted in damages, sub-standard work, professional errors, and defamation. This insurance covers the compensation payments, legal costs, and any other costs concerning the claim.
Here are examples of instances where professional indemnity insurance may come in.
- One instance is where a client comes to you to seek advice on a particular plumbing issue. If you offer that advice at a fee and they implement it, but instead of resolving the problem, it leads to damages, they are likely to demand compensation.
- Another instance is where you deliver the services paid for, but the client claims low quality. The client may ask for compensation so they can look for the quality they are seeking.
If you are a plumber who offers services at a fee, professional indemnity insurance is essential.
Preventing and Mitigating Claims
In plumbing contracts, you might find that a claim relating to an issue or a dispute is not made immediately. If you comply with the obligation to correct the defect, a compensation claim will not take place. Most professional indemnity insurance policies offer a clause for loss mitigation that covers the expenses or costs of preventing and mitigating a possible claim.
Is Professional Indemnity Insurance a Must-Have?
Even though it is not compulsory under the law, as a plumber, you might require to have it due to the rules of the body governing your area or professional body. Also, it is important since you will be able to secure the plumbing contracts that demand this insurance.
Is Public Liability Insurance a Must-Have?
Public liability insurance is not a must-have but lacking it will hinder you from many opportunities. For instance, you might find a very big plumbing project that requires you to have public liability insurance. To ensure you maximise your opportunities, ensure you have this insurance.
Finally, both public liability and professional indemnity insurance are vital for all plumbers. Public liability will enable you to do your work while at ease since, in case of any third-party claim, the insurance will cater for it. On the other hand, professional indemnity will cater to any claims of professional negligence or mistakes. These two insurance covers are not legally required, but it is important to have them. Since accidents and claims are inevitable, ensure you and your business are insured.
All Trades Cover is one of Australia’s fastest-growing trade insurance providers. We provide high quality, cost-effective insurance for tradies. Our team offers efficient, friendly customer service, and we understand the specific needs of your plumbing business.
For fast, easy insurance, get a quote from All Trades Cover today.