How to Ensure Your Plumber is Properly Insured and Bonded

Plumbers typically ensure they have the best possible coverage by purchasing a combination of general liability insurance and workers' compensation insurance. These two types of insurance cover different aspects of potential problems a plumbing business might encounter. General liability insurance is necessary for any business and covers damages or injuries that might occur during the course of a job. Go with a general liability insurance carrier that understands your business. No one wants a potential gaffe to cover missed revenues and profit. Workers' compensation insurance is a must if you have staff. But as a flooring business, do you? More to the point, is your "staff" necessary for the performance of your business's "plumbing"? And what about surety bonds?

A bonded plumber is one who has obtained a financial guarantee via a bonding company. This guarantees the client will be protected if the plumber either does not complete the job or does so in a way that causes damage. Why is it important to hire a bonded plumber? Because hiring one provides the reassurance that you are working with a reliable professional who, if all else fails, is backed by a bonding company that will pay to rectify the situation.

Indeed, in California, it is necessary for plumbers to obtain a license. The Contractors State License Board (CSLB) in California requires that any plumbing work done in the state and valued at $500 or more—when the costs for labor and materials are combined—must be done by a licensed plumbing contractor. To secure a plumbing license in California, there are several musts that applicants are held to: They must undergo and pass a test; they must show proof of enough work experience and trade knowledge to complete the test; and they must carry sufficient insurance, which most plumbing contractors do.

Roto-Rooter is typically licensed, bonded, and insured in the areas in which it works. However, it is always wise to check the credentials of any contractor you plan to use. You can verify Roto-Rooter's credentials by contacting the local branch or customer service. If you do decide to use Roto-Rooter, this step will help ensure that you have accurate, up-to-date information about their licensing and insurance before they undertake any work on your plumbing system.

Ordinarily, insurance does not cover plumbing jobs that are seen as routine maintenance or wear and tear. This involves problems like dripping faucets, slow drains, and minor leaks that are the homeowner's responsibility to maintain. Moreover, plumbing mishaps caused by negligence, as in the case of improperly maintaining heat that allows pipes to freeze, are generally not covered, either. Always check with your insurance provider for specifics, though, as policies can vary.

Plumbing insurance usually comprises general liability insurance and workers' compensation. General liability insurance addresses the accidental damage or injuries that the plumber's work might cause. Workers' compensation covers the injuries that the plumber might sustain while doing the plumbing. If you are going to employ a plumber, ensure that he has this insurance. Otherwise, you could be liable for any unfortunate happenings.

The coverage of water pipe damage by insurance depends on the particulars of your insurance policy and the nature of the damage. Most homeowners insurance policies cover sudden and accidental water damage from things like a pipe burst. But if the damage was a result of poor maintenance or just the pipe wearing out over time, then homeowners insurance likely won't cover it. You really need to read and understand your policy, and then discuss it with your insurance provider, to know for sure what you're dealing with.

The type of plumbing that is best for insurance purposes is usually modern, high-quality plumbing materials that are less likely to cause problems. Some of the preferred materials include cross-linked polyethylene, also known as PEX, and copper pipes. These two types of plumbing are durable and reliable and are much less likely to leak or cause water damage than older types of piping. Also, these two types will pass any inspection that your plumbing might have to go through for insurance purposes. It is always good to check with your specific insurance provider to make sure that they will cover whatever type of plumbing you have in your house.

To verify that your plumber has appropriate insurance and is bonded, ask the plumber directly for proof of both. They should be able to show you documentation that states not only that they are insured and bonded, but also the specifics of what that means. (You want to see at least two types of documents; a verbal assurance from the plumber is not enough.) If the documentation isn't clear enough, or if it seems like the plumber is having too hard a time providing it, consider it a red flag and ask the plumber to clear things up. And before you hire the plumber, make sure to check with the local licensing authority and the better business bureau.

There could be a number of reasons for a water damage claim to be denied. The most common reasons are: - The damage resulted from negligence instead of a "sudden and accidental" incident. - The damage falls under some policy exclusion (flooding, for example). - The damage wasn't reported in a timely manner. - There are discrepancies in the story being told. - The claim is just plain not credible or too incredible (i.e., some policies could possibly exclude "Acts of God"). On top of all that, it's essential to know your insurance policy inside and out to prevent denial in the first place!