Are you running a plumbing business in Australia? It takes a lot of hard work! When constantly managing schedules, tools, vehicles, and clients, sometimes you’ll be facing the unexpected.

From burst pipe flooding a property to a stolen tool van, it is a wise idea to always be prepared. Investing in the right insurance for a plumbing company can be the difference between

This article will detail everything you need to know about plumbers’ insurance in Australia, from policies to cost-saving strategies. Whether you’re a sole trader or running a team of plumbers, the right insurance will help you feel protected.

Why is Insurance Important for Plumbing Businesses?

You might break a pipe during a bathroom renovation, damage a client’s tiled floor, or have a team member injured while on-site.

Plumbing incidents could lead to expensive claims or even legal action, so insurance will work as the perfect failsafe
Helps businesses recover financially and avoid bankruptcy
Adequate insurance builds trust with clients and other stakeholders
Insurance is a legal requirement for licensed plumbers
Allows businesses to operate even when there is loss of income due to injury or accident

Insurance builds credibility. Many Australian clients and building contractors won’t hire plumbers without valid proof of Public Liability Insurance. Tools, vehicles, and staff are valuable assets, so a plumbing business insurance package protects everything you’ve worked hard to build from the ground up.

Types of Insurance for Plumbing Business

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So, you’ve just started a plumbing business or you’ve owned one for a few years. What kind of insurance can you look into?

General Liability Insurance (Public Liability)

Is a client or member of the public holding your business liable for personal injury or property damage? Public Liability Insurance protects your business if a customer, subcontractor, or member of the public suffers injury or property damage because of faulty work.

For example, if you’re installing a hot water system and the client’s kitchen floods due to a faulty connection, public liability insurance helps cover the repair and legal costs. What is usually covered with this insurance?

Legal fees, including appropriate legal representation or the legal defense fees to defend yourself in court
Financial compensation if a claim is successful. The amount PL covers depends on damage caused and the circumstances of the event

With this in mind, every insurance policy contains exclusions. Incidents that may not be covered could include damage caused deliberately and knowingly by you and your business.

Workers’ Compensation Insurance

Does your plumbing business employ apprentices? According to Safe Work Australia, employers are legally required to hold Workers’ Compensation Insurance, but what does it cover?

Covers medical, hospital expenses, and other rehabilitation treatments
Covers a portion of your wages while you recover away from work
Covers a lump sum if you receive a permanent impairment
Covers funeral expenses, periodic payments for dependants and a family lump sum from accidental death

Failing to have this cover can result in heavy fines and penalties, and your employees are vulnerable.

Commercial Motor Insurance

Your vehicle as a plumber is your mobile workshop, and it is even more so important if you have a fleet of vehicles! Commercial Motor Insurance protects utes, vans, or entire fleets used for business. What specifically can you get covered for?

Accidents and collisions, such as covering the cost of repairing or replacing your company vehicle
Theft and vandalism, replacing stolen vehicles or repairing damages from acts of vandalism or theft
Coverage for fire damages, such as from arson or other causes
Third-party liability cover, including property damage and bodily injury liability

Some policies include rental vehicle cover, so you’re never off the job for long. Keep your vehicles insured and your business moving!

Professional Indemnity Insurance

A plumbing business often completes high-risk work on the job, so insurance coverage is critical if there is ever a slip or fall. Public Liability Insurance covers physical damage, however, Professional Indemnity Insurance protects plumbers against claims that stem from professional advice or actions, even if they are not intended.

Although it is not compulsory by law, as a plumber you may need it due to the rules of the body governing your area or professional body. What does this cover?

Negligence claims, such as covering the cost of compensation and legal fees
Covering claims for omissions or errors made in providing plumber services or advice (even if the plumber did not intend harm)
Run-off cover, which offers protection even if the plumber has ceased working on a specific project

For example, the Victorian Building Authority states that plumbers must hold insurance covering all aspects of the work they are permitted to do. The insurance must meet certain requirements and be verified by the VBA before you can have a plumbing license granted or renewed.

What about Umbrella Liability insurance? This policy adds extra coverage on top of your existing Public or Employer’s Liability limits. It is helpful if you work on high-value projects, subcontract regularly, or your contracts require additional liability protection. Knightsbridge Insurance can point you in the right direction for commercial insurance in Australia.

To learn more, read our blog on what are the most common types of commercial insurance in Australia!

How Knightsbridge Insurance Group Help Plumbers

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Choosing the right insurer is just as important as choosing the right policy. There are many ways Knightsbridge can help you make the right move:

We understand you as an individual and your industry. We analyse whether the insurance provider understands plumbing risks, working closely with tradies and offering tailored advice.
We offer comprehensive claims support: How easy is it to lodge a claim? What’s the average turnaround? We make this process a lot easier for you. There’s no need to waste hours trying to decipher complex insurance policies for your plumbing business.
We customise an insurance package for your business needs and size. Taking the time to explain your options in real-world language means that you’ll feel completely confident in your insurance decision.
We are transparent and carefully look at the insurance policy. Are exclusions, deductibles, and policy limits clearly explained? We find a police that accurately reflects your unique circumstances.

As your trusted insurance brokers, it’s our duty to help you find the right products and insurers as there is no one-size-fits-all solution. And at times, the risk and dangers of being uninsured, being insured with the wrong coverage or with the wrong company can have far greater economic losses than imagined.

What can affect the cost of insurance for your plumbing business?

The size of your business and how much experience you have. Larger businesses with more employees or higher annual turnover may pay more due to higher risks on the job. Experienced plumbers with reliable safety records may receive premium discounts.

Your claims history. A history of frequent or large claims can flag your business as high-risk, leading to increased premiums or exclusions. A clean record helps maintain lower costs.

Your location and the environment you operate in. Urban areas often see higher premiums due to traffic risks, higher property values, and crime rates. Jobs in industrial or construction zones may also affect your risk profile.

In any case, an insurance broker at Knightsbridge helps you make a claim. Get in touch with us to ensure the best possible outcome for you, your business and your family.

Choose Knightsbridge for Plumbing Insurance

Running a plumbing business without insurance is like working without tools: risky and short-sighted! Thankfully Knightsbridge Insurance Group can find coverage that is tailored, flexible, and designed to protect every part of your operation.

Whether you are a sole trader or managing a team of ten, we build a custom policy that protects what matters most. From speciality insurance in Australia to personal insurance, we’re here to lead you to the right move.

Contact our friendly team today by calling 1300 527 4343, email [email protected] or visit our office in Helensvale, Queensland.

Frequently Asked Questions for Plumbing Clients

Let’s take a look at some commonly asked questions by plumbers seeking reliable insurance for their business operations.

1. Why is it becoming more difficult and expensive to obtain Public Liability Insurance for a plumbing company?

Public Liability has become harder to obtain for plumbers due to a large number of water damage claims and the costs associated with these claims. Claims involving water damage to high rise buildings have impacted the market considerably, and a number of insurers now have specific restrictions in place or working at heights.

2. Am I covered to work at heights or high-rise buildings?

One of the main questions that Insurance companies ask for plumbers seeking Liability Insurance is what heights they are working at. A number of Insurers have height restrictions in place that clients may not be aware of and can be a major issue in the event of a claim.

For example, a plumber doing work on the 8th floor of a building has the ability to flood and damage not just the floor they are working on but also the 7 floors below. If the insurer has a height restriction in place, excluding coverage for any work over 10 metres, then there would not be any coverage in this instance and the plumber would be held responsible for the damages caused, which would be significant.

3. What is the best insurance for plumbers and how does it cover you?

We know plumbing works can include a wide range of work, including Residential, Commercial, Industrial, High-Rise, Roof Plumbing, Gas Fitting, Fire Protection, and civil Works, to name a few. It is important to make sure that your policy notes and covers you for all aspects of your business. All businesses are different, so we make sure that we delve into the work our clients are undertaking and ensure that the correct cover is in place.

4. What are some essential policies for your plumbing business insurance?

Public Liability, General Property Cover for Tools of Trade, Plant & Equipment (Excavators, Forklifts, Scissor Lifts, etc.), or Commercial Motor Vehicles (Work Utes, Trailers, etc). Speak to insurance brokers at Knightsbridge Insurance Group to clarify what policy will work best for your circumstances. Afterall, every business has different needs according to their work, their employees, customers/clients, and what they are most at risk of on the job.

Running a Plumbing Business? Here’s the Best Insurance to Keep You Covered