3 Key Types of Business Insurance for Sole Trader Plumbers

Even a new startup business owns items which need insurance coverage. For example, you should insure your plumbing tools and equipment.

If someone steals your tools, you may be unable to do your job. You'll also have to pay to replace anything lost or stolen. If you've invested in high-cost equipment like CCTV drain cameras and hydro-jetting machines, you may not be able to afford to replace these items.

Stock coverage is also useful. You'll typically build up stocks of common parts as your business grows, so that you can complete small jobs on the spot. Again, if your stock is lost or stolen, you will have to pay to replace it if it isn't insured.



You should also set up a commercial insurance policy for any vehicles that you use for business purposes. A good policy won't just cover the costs of loss or damage; it may also set you up with a replacement vehicle to keep you on the road until your insurer settles your claim.

The work you do sometimes negatively affects other people. If you cause an accident or make a mistake during the course of your work, you may be liable for third-party damage costs.

For example, say you work on a blocked drain. You think there is a problem in the connection to the sewage system, so you remove its manhole cover. You forget to block off the hole and someone falls into it. They could sue you for any injuries they receive as a result.

Public liability insurance coverage protects you against this kind of third-party claim. Your policy will cover injuries to other people, property damage and legal costs.

Bear in mind that public liability insurance may also be a condition of your plumbers licence in some states, and even if this insurance isn't mandatory, you should definitely consider it. You're unlikely to be able to afford to pay compensation and legal costs if someone does bring a case against you.



Plus, this coverage could help you get more subbie jobs, with some building companies and contractors only hiring subbies who have their own public liability policy.

Whilst building your own business is an attractive financial prospect, you do need to think about how you would pay your bills if you suddenly lost your income. You don't have an employer's workers compensation package to help you out now!

For example, how would you cope financially if you broke your arm? You won't be able to complete any plumbing jobs until your arm heals, which means you won't bring in any income. You may even struggle to pay your living expenses and your fixed business costs.

You can take out an income protection policy to cover times when you cannot work because of illness or accident. These policies pay part of your income for set periods and this income could keep you going until you are able to start earning again.



If you need professional, friendly advice to protect yourself and your business, contact Westralian Insurance. We can assist you in setting up the best coverage for you and your plumbing business in the most cost-effective way.