As an Ohio plumbing business, it’s important to understand why you need business insurance and the options available to you. Investing in insurance helps protect your revenue, reputation, and day-to-day operations. Without it, you put your livelihood at risk. So, let’s explore plumbing insurance and how it keeps you covered.
Why Do Plumbing Businesses in Ohio Need Insurance?
The nature of plumbing work leaves plumbing businesses open to risks such as water and property damage. Plumbers also utilize company assets like vehicles and costly equipment that are susceptible to theft and damage. Additionally, plumbing work is taxing on employees and could lead to injuries.
Because of these risks, plumbing businesses need well-rounded plumbing insurance policies designed to protect each area of their business.
Ohio Licensing Specifics
In Ohio, one of the requirements to obtain a State License from The Ohio Construction Industry Licensing Board (OCILB) is to carry a minimum $500,000 contractor liability policy. You can learn more about this on the Ohio Department of Commerce website.
General Liability Insurance for Plumbers
General liability insurance is the foundation of your plumbing insurance policy. This coverage protects you financially if someone besides an employee is hurt or if you’re responsible for damage to property that isn’t yours. This coverage helps cover the fees for:
- Medical payments
- Property damage
- Advertising injury
- Legal fees and judgements
Example Scenario: How General Liability Insurance Protects Your Plumbing Business
Your team is working on a plumbing issue at a home and accidentally damages a pipe. This leads to water damage in the home. Your general liability insurance will cover the cost of repairs and restoration after your deductible is paid.
Is General Liability Insurance Enough for Plumbers?
In short, probably not. If you want to mitigate risks associated with your plumbing business for advanced protection, your policy needs to be rounded out. For example, general liability doesn’t cover damage to your business assets like company vehicles or bodily injury to your employees.
Other Recommended Insurance Coverage for Plumbers
For a well-rounded plumbing insurance policy, we recommend the following:
Commercial Auto Insurance
Chances are, you have at least one, if not multiple company vehicles used to conduct your business. When choosing a commercial auto policy, we recommend having both collision and comprehensive coverage. This protects you financially if:
- The company vehicle is damaged in an accident or causes damage
- Your employees are hurt in an accident or bodily harm is caused to a third-party in the accident
- Damage due to theft, vandalism and weather events
Tools and Equipment Coverage
Your plumbing business has a variety of specialty tools and equipment. The cost of these items adds up! With tool and equipment coverage, if items are damaged or stolen, they can be replaced.
Workers’ Compensation Insurance
Plumbing is physical work. Whether your team is on a jobsite or in a residential home, they are at risk of bodily harm. If an employee is hurt on the job, Workers’ Compensation helps cover:
- Medical expenses
- Lost wages
- Employer liability
Workers’ Compensation in Ohio
In Ohio, businesses with employees are required to have Workers’ Compensation Insurance. For a detailed breakdown of how this works in Ohio, visit the Ohio Bureau of Workers’ Compensation website.
Commercial Property Insurance
Commercial property insurance protects your company’s facility and on-site assets such as: offices, garages, inventory, and office equipment. For example, if your office suffered a fire, commercial property insurance could cover:
- Building repair/restoration
- Damage to equipment and inventory
- Lost income
- Operating expenses
Surety Bonds for Ohio Plumbers
In some cases, your business may need a surety bond if required by the entity hiring you. The surety bond guarantees you will complete your contracted work and follow licensing laws. It’s common for government agencies to require surety bonds when completing work for them. For more information about how surety bonds work, visit the specialty insurance page of our website.
Plumbing Insurance FAQs
Check out some frequently asked questions about plumbing insurance below:
Do self-employed plumbers need business insurance in Ohio?
Yes, self-employed plumbers need at least general liability insurance to obtain a plumbing contractor license in Ohio. Once you hire an employee, you’ll need to add Workers’ Compensation to your list. Do you use any vehicles for company purposes? If so, the state of Ohio requires you to have commercial auto insurance.
Does plumbers insurance cover water damage?
This depends on your policy and the situation. Most likely, your general liability insurance will cover accidental damage to third-party property. Damage caused by faulty workmanship isn’t normally covered. Additionally, policies may have limits so major water damage may not be covered. We recommend discussing policy specifics with your insurance agent to ensure your policy meets expectations.
How much does plumbing insurance cost in Ohio?
There are many variables that factor into the cost of plumbing insurance. At a basic level, a small-business purchasing basic general liability insurance can expect a policy to be around $800 per year. As the size of your business increases, you add employees, accumulate more assets, and pursue comprehensive coverage, the price increases.
Plumbing Insurance in Ohio With Ianniello Agency
At Ianniello Agency, we work closely with plumbers and plumbing businesses to develop an insurance policy that covers the unique needs of your operation. From general liability insurance to surety bonds, we can develop a policy that protects your livelihood, employees, and property. Contact us today to review your current coverage or start a fresh quote. You can also request a quote online here.
