Many small plumbing companies run on a
shoestring budget. They may require no more than a van, a couple of plumbers,
and a part-time employee to keep the books. If you operate a family-owned
plumbing company, you probably strive to keep overheads as low as possible.
This may mean that you have never considered customized commercial insurance
coverage for plumbers – many entrepreneurs reject the idea because they think
it sounds too costly. But in fact, customizing your insurance policy can lower your overhead costs! Many standard
commercial insurance policies are designed for larger companies, and if you are
using one, you may be paying for coverage that you’ll never need. For example,
a company located in the Muskokas that specializes in repairing or replacing
fixtures and pipes in cottages does not need to be insured for the same types
of activities as companies that retrofit industrial properties or public spaces
in the Greater Toronto Area.
On the other hand, larger companies may be
underinsured. If your business has grown in recent years and you are now
managing multiple crews and worksites, you may want to consider opting for
customized commercial insurance that will be sure to provide adequate coverage.
What is Customized Commercial Insurance Coverage?
At a minimum, insurance for your plumbing business should
cover:
- Vehicles
and equipment, including loss, theft, and breakdown;
- General
liability;
- Loss of revenue due to losses or damages at a contract site;
- Building material replacement;
- Group accident coverage for your employees.
Most insurance companies offer policies that are tailored
to reflect the client’s business size and number of employees. These are
sometimes marketed as "custom” policies. However, truly customized commercial
insurance requires a deeper look at your business and its individual needs. You
should begin by engaging a broker, who will spend time with you to really learn
about your business and all of its activities. A comprehensive risk analysis
will follow, pinpointing areas where your business may be vulnerable. (The
safety expert who conducts this analysis may even be able to suggest ways that
you can minimize exposure to risk.)
Choosing
an Insurer
Even if you are satisfied with your insurance carrier,
it’s important to reassess periodically. Your business may have changed in ways
that makes it important to change your coverage. A broker can help to keep you
up-to-date with changes, and can answer questions for you. If you have to make
a claim, your broker can guide you through that process, too.
The key to having peace of mind with regard to insurance
is trust. Look for a company that values the broker/client relationship, and a
broker who is willing to take the time to get to know you and your business.
You must be able to trust that your broker has your best interests in mind, and
that he or she will help to provide you with all of the coverage you need – and
none of the coverage that you don’t need. You must also be able to trust that
if something did happen, your broker would have your back; that you’ll be
compensated quickly and in the way that causes the least amount of disruption
possible to your business.
Consult with a broker who specializes in customized
commercial policies for plumbers, and learn more about what this type of
insurance can do for you.