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By Adrianna Norton

When a plumber or other home repair professional comes into a home to do a repair, they are required to have liability insurance. Things can happen during a plumbing repair job that can result in unintentional damage. For instance, a pipe could be accidentally hit causing the leak of oil or gas which may require costly clean up. Contractor liability insurance can help alleviate the cost. As well, a problem could be fixed, but a day later, the problem could reoccur. Contractor liability insurance is a necessary financial safeguard to protect the client and the hired professional.

Contractor Liability Insurance is insurance that contractors buy to protect them from specific liability claims from issues that occurred during contractor operations. This insurance helps financially protect a contractor from accidental damage, injury to others, contractual liability, and more. If a contractor does not have contractor’s liability insurance, a contractor could be put out of business there was a lawsuit. Depending on the type of insurance purchased, contractor liability will not only benefit the policy holder, but it can also protect people who work under the contractor. When a contractor chooses a policy, they will often choose a million dollar liability, but they can also choose higher liability such as two or three million dollars. The type of insurance a contractor purchases will depend on the level of risk. They will also normally make sure any subcontractors they hire also have contractor’s liability insurance. This is to ensure protection if a subcontractor attempts to avoid liability responsibility if they make a mistake resulting in damage.

For a plumber, they will normally have liability that covers plumber related issues such as septic, gas, and water systems. When it comes to installation of plumbing systems, many contractor liability insurance policies cover damage that occurs after a specified period outlined in the insurance policy. For instance, a professional plumbing company may guarantee its parts and workmanship for twelve months and if there are any problems during this period, they will redo it at no cost to the homeowner. This means that if a part broke down once during the warranty period and then again a few months later, it will still be within the warranty period. Therefore, homeowner will be able to have it repaired again at not cost. A professional plumbing company will always maintain the necessary insurance coverage.

Much like doctors having malpractice insurance, contractors have insurance to cover damages from accidents and unintended damage that occurs during a job. If an event occurs, the insurance company will review the report and evidence collected by the insurance adjuster. Once fault has been determined, and it is the contractor who is found liable, the insurance company will provide compensation for such things as parts or property damage, legal costs, and possible medical expenses. Contractor’s liability insurance will not cover bad workmanship; however, it will provide coverage for property damage that is the result of the work performed by the plumber. As well, it will cover any injuries sustained during the work project.

It is essential that all contractors, including plumbers, obtain liability insurance because costs associated with an accident can be very expensive. If a homeowner is not sure about the provisions outlined in a plumber’s policy, he or she should ask the plumber. Contractor’s general liability insurance protects a contractor in an industry where accidents happen frequently. As well, this type of liability insurance will give both the homeowner and plumber peace of mind knowing they are protected.

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Source: isnare.com

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