What considerations do you need to make when choosing Plumbing & Heating Contractor’s Insurance?

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Like all businesses, plumbing and heating contractors face risks. There is the potential for loss of tools, equipment, materials and other property due to accidental damage or theft. There’s also the risk that someone could be injured as a result of the business activities. Plumbing and heating engineers need insurance to protect their businesses from these risks and the unexpected costs that can result from them.

In addition, some insurance is compulsory. Motor insurance is a legal requirement if you are using a vehicle, and employers’ liability insurance is a legal requirement if you employ anyone. Failing to have these two types of insurance when you are required to do so can lead to serious penalties. In the case of motor insurance, it can even lead to the confiscation of your vehicle.

However, due to the nature of their trade, there is a greater chance of a plumbing and heating engineer finding themselves in situation where they are facing a large loss. This is because they often use heat as part of their trade, and because there is a risk that if they do something wrong a property could be flooded.

 

Heat use

Whenever heat is used, there is a risk of an accidental fire starting. If you have self-employed public liability insurance, that will cover you if someone makes a compensation claim against you because you have accidentally set fire to their property, but insurance claims resulting from fires can be extremely costly.

As a result, insurers will often exclude claims arising out of the use of heat from public liability insurance unless an additional premium has been paid. When the insurer has agreed to remove the heat use exclusion, it will be replaced with heat use conditions.

These heat conditions list a number of steps that must be taken whenever heat is used. They are mostly common sense, but it is important that you check your insurance policy to make sure that you’re complying with these heat use conditions, because if you don’t, your insurance cover could be invalid.

It is also important to make sure that you have an adequate public liability insurance indemnity limit, particularly if you are working on high value or commercial properties.

 

Flooding

Plumber’s public liability insurance claims resulting from flooding can be extremely costly. Even if you only flood a domestic property, the claim can cost tens of thousands of pounds. If you flood a commercial property, the claim could cost a lot more, particularly if the business owner or tenant was unable to trade while the property was repaired.

Again, it’s important to make sure that you have an adequate public liability insurance indemnity limit.

 

Indemnity limits

The indemnity limit is the maximum amount that your public liability insurance will pay in the event of a claim.

The standard indemnity in most public liability insurance policies is £1,000,000. However, this can be increased if you pay an additional premium, and many people opt for a £2,000,000 or even £5,000,000 indemnity limit.

If you are working on high value or commercial properties, a fire or flood could well cost more than a £1,000,000, particularly if the claim included loss of income because the business using the property was unable to trade for a while as a result of the incident. You should think about what could happen and be sure to insure your business appropriately to avoid huge costs in the future.

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*This indicative price is for £1m public and products liability, £250,000 legal expenses, £10,000 financial loss and £10,000 accidental death insurance cover for a sole trader. The price includes insurance premium tax and our admin charge. 22% of new customers paid less than £58 between 1st January 2019 and 31st August 2019. The actual price you pay will depend upon your specific business requirements and will be affected by your trade, your claims history and the optional covers you select which are all priced separately during the quote process. This website is intended for customers based in the UK and is therefore subject to the UK regulatory regime(s) © Copyright 2019 Tradesman Saver | Tradesman Saver and Henry Seymour & Co. are trading names of Barkdene Limited which is authorised and regulated by the Financial Conduct Authority (FRN 303965) for our insurance distribution and credit broking activities. Barkdene Limited is a credit broker not a lender. You can check this on the Financial Services register https://register.fca.org.uk/.
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