Imagine an accident involving a pipe that breaks open in a client's home, damaging flooring, electronics, and drywall. If you are the plumber on the job, it may be your responsibility to cover those losses. With the right type of general liability insurance, you can do just that. If you are starting your own plumbing company, here is what you need to know about the coverage you need.
What Will General Liability Insurance Help You With?
Policies differ. That gives you some flexibility in choosing one that is right for your needs.
Most of the time, general liability insurance covers claims made against your company. It may cover instances of someone suffering property damage or injury as a result of actions your business took.
Yet, this is a very broad definition. Let's take a closer look at the nuances, starting with two key points.
1. Accidents Can Happen To Anyone
As a startup, an accident involving injury or loss can be devastating. While a larger company may not have much trouble covering these types of claims, a smaller company may find it financially disastrous. Having general liability insurance can help minimize many of your company's risks of financial loss.
2. Negligence Of Workers Is Not Uncommon
You strive to provide the very best service and support to your plumbing clients, but no one is perfect. You or your employees could make mistakes even if you don't set out to do so.
It is your responsibility to stand behind the work you do. If mistakes or negligence cause losses to a customer, you are responsible for the damage.
Imagine damaging a kitchen because of a mistake. That can be a costly loss. General liability coverage can help you pay for it.
How Much Is Right For You?
How much general liability insurance you need depends on many factors. Many times, having $1 to $2 million worth of general liability insurance is ideal.
However, this amount changes widely based on numerous factors. The size of your company is one key concern, as are the number of sales you have and the type of work you do.
It is best to get an accurate quote from your Consolidated Insurance Markets agent. Your agent will discuss the options with you. They will talk about the types of claims other businesses in your area have. As a plumbing startup, that information will be valuable since you do not have a claims history.