How Plumbers Can Get Low-Cost Insurance to Work in High Rises

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What Type of Insurance Do Plumbers Need?

A comprehensive policy for plumbers working in high-rise units typically includes the following types of coverages:

• General Liability Insurance

Frequently referred to as plumbers’ liability insurance, general liability insurance offers you financial protection against claims or lawsuits alleging third-party property damage or third-party bodily injuries caused by your work. 

• Tools and Equipment Insurance

The tools and equipment you own and use are expensive and critical to your work. Protect them! Tools and equipment insurance protects your investment if your tools are damaged, lost, stolen, or vandalized.

• Pollution Liability Insurance

Often included with general liability insurance, pollution liability insurance covers pollution-related accidents resulting in third-party injury or property damage. This coverage is essential for plumbers working on waste disposal lines and water systems.

• Professional Liability Insurance

Also known as errors and omissions insurance, professional liability insurance protects plumbers from claims and lawsuits alleging financial loss due to a service they provided, negligence, misconduct, and failure to deliver services as promised.

• Commercial Auto Insurance

Covering your business vehicle if damaged in an accident is critical (personal auto insurance is not sufficient for covering work vehicles). A standard or basic commercial auto policy covers any vehicle used to transport people, materials, packaged goods, and tools and equipment. 

You can up your protection by including optional coverages such as collision and comprehensive insurance. Collision or upset auto insurance pays for losses to your vehicle following a collision with another vehicle or a stationary object if you’re not at fault for the crash. Comprehensive insurance covers you for losses if your pickup or van is stolen, vandalized, or damaged by extreme weather or falling and flying objects.

Speak to a Zensurance broker if you have questions about the coverages your policy should contain.

How Plumbers Can Minimize Their Liability Risks

Working in high-rise units presents a unique set of liability risks for plumbers, given the complexity of your job and the scope of work you’re entrusted to do. Minimizing those risks is critical for both safety and keeping your insurance bill down. Here are a few steps to consider:

• Licensing and Certification

You already know you need to be licensed and certified to get hired to do plumbing work in a high-rise building, and the requirements for doing plumbing work in a high-rise building are often more stringent due to regulations. Ensure your licenses and certifications are updated to help reduce the threat of legal issues that can arise.

• Thoroughly Inspect the Work Environment Before Starting

Your parents likely told you to “look before you leap” as a child. The same rule applies to plumbers and other skilled trade workers on any job site. Inspect the area you’ll be working in before beginning work to spot possible hazards, such as existing damages or faulty plumbing systems. Doing so helps avoid accidents, damages to property, and the risk of a professional negligence claim against you.

• Put Safety First

Always follow safety protocols on every job, like wearing personal protective equipment (PPE), securing your tools and equipment after use, and cleaning up the work area after you’re done. The goal is to prevent accidents to others and yourself and damage to the units you work in.

• Adhere to Recommended Techniques

Using high-quality materials and following recommended best practices and techniques on every job is a mark of your competence and reliability. It’s not just about doing the job, but doing it right to prevent potential water damage and leaks.

• Conduct Routine Maintenance of Tools and Equipment

Regularly inspect your tools and equipment to ensure they’re in good working condition. If a specific tool is nearing the end of its lifecycle because of wear and tear, replace it.

• Know the Building’s Layout and Systems

You may be dedicated to working in individual high-rise units, but it’s important to know the entire building’s layout and plumbing systems, including where the main water lines and emergency water shut-off valves are. That way, if something suddenly goes wrong, you can act quickly to reduce major damages.

• Have a Detailed Contract

You should have a signed contract from the contractor or employer who hired you. That contract should clearly state the scope of the work you are expected to perform, your responsibilities, and limitations or exclusions.

• Accurately Document Your Work

Maintain detailed, accurate records of the work you perform in every high-rise unit. Document everything, including pre-work inspections, the materials and tools you used, the installation projects, and the post-completion tests you performed. Take photos and videos of your work and the work area and store them in case a dispute arises later over what you did.

Steps Plumbers Can Take to Keep Insurance Premiums Low

There are several things a plumber can do to keep the annual premium on plumbing insurance low, including:

• Join a Professional Association

It’s worthwhile to consider joining a professional or trade association. These associations can offer their members group insurance rates at lower prices than what you can find on your own, potentially saving you a significant amount on your annual premium.

• Choose High Deductibles

Most types of insurance include deductibles. A deductible is the amount of money you pay upfront after filing a claim before your insurer covers an insurable loss. You can choose what your policy’s deductibles are. 

Generally, the higher the deductible, the lower the annual premium. That’s because it reduces the financial risk for the insurer by shifting some of the responsibility for paying for a loss to the policyholder (in this case, you). Higher deductibles also encourage policyholders to be more cautious in their work. When a policyholder chooses a high deductible and works more carefully to avoid accidentally damaging third-party property, the policyholder is less likely to file a small claim. In return, insurers will pass those savings to policyholders by lowering premiums.

• Bundle Insurance Policies

A plumbing insurance policy contains more than one type of coverage. By bundling or buying several coverages to create a policy from one insurer instead of multiple insurance companies, an insurer may offer discounts on the total premium. For example, buying tools and equipment insurance and commercial auto insurance may result in a lower overall cost.

• Seek Policies Designed for Working in High Rises

It’s not a matter of buying any type of liability insurance, but rather, buying the right type of insurance that suits your specific requirements and work environments. Purchasing a plumbing insurance policy designed for work in high-rise units can provide better coverage at a lower cost. That brings us to the next point.

• Work With an Insurance Broker

Partner with a licensed insurance broker specializing in getting insurance for skilled trades professionals working in high-risk environments like a high-rise building under construction. A business insurance broker can shop a variety of insurers to find the right coverage, negotiate better rates on your behalf, and customize a policy to ensure you only have the coverage you need. 

• Ask About Discounts

Talk to your broker about potential discounts you may qualify for because you’re meticulous about adhering to safety measures. Demonstrating you’re proactive in taking preventative measures to reduce the chances of accidents and damages, and share the details on your professional certifications, training, and the safety gear you use. Additionally, you can ask about paying your premium monthly instead of annually to make paying a premium easier.

• Choose Appropriate Coverage Limits

It’s also wise to talk to your broker about the coverage limits each type of insurance in your policy should have. Many types of insurance come with a predetermined limit. For example, professional liability insurance typically comes with $1 million of coverage. But you can increase that limit to $2 million or more. 

It’s vital to know your coverage limits because if you file a claim for damages and the cost of those damages exceeds the coverage limit, you’re responsible for paying the balance. On the flip side, you don’t want to choose an excessive coverage limit if your work in high rises is limited to specific tasks.

• Avoid Filing Insurance Claims If Possible

Refrain from filing unnecessary claims when possible. Adhering to recommended best practices and safety protocols and using the correct tools and techniques to do your job can minimize the likelihood of having to file a claim. Your insurance claims history is one of the many things insurers consider when pricing your policy. Fewer or no claims equals less risk for insurers and may result in a lower premium.

• Meet Property Management Insurance Requirements

Know the property management’s insurance requirements to ensure you meet those liability coverage requirements without overspending on a policy. If keeping the premium as low as possible is your goal, you don’t want to inflate the cost of your premium with coverage you don’t need.

How to Get Low-Cost Plumbing Liability Insurance

Zensurance specializes in finding plumbers, contractors, and skilled trades professionals with comprehensive, low-cost liability insurance.

Fill out our online application for a free quote in less than five minutes.

Tens of thousands of professional plumbers trust Zensurance to get them the affordable, customized plumbing insurance policy they need for their various jobs. Our knowledgeable team of brokers can help you get the coverage you need, provide you with a certificate of insurance, answer any questions, and tailor your policy for working in high-rise commercial and residential buildings.