What Insurance Does a Plumbing Company Need in the UK?
Both plumbing companies and self-employed emergency plumbers in the UK need specialist insurance protection. The insurance policy of plumbers must provide the basic foundation of all essential covers including public liability insurance together with other options for cover to provide the required comprehensive protection.
Plumbing companies must get employer’s liability insurance. It is considered a legal requirement in almost all situations with the only exception having family members as employees.
Coverage of Public Liability Insurance for Plumbers
While it is not legally required to have a public liability insurance, this is still worthy to have for many good reasons. This will cover all financial liabilities that may occur as a result of your job. For instance, if there is a pipe leak after your work and the building incurs damage, the policy is going to pay customer with the set compensation amount.
Similarly, if any member of the public suffers from injury because of the plumber’s work, the plumber’s insurance policy will cover all compensation payments and legal costs that will arise.
Plumbers must be requested to present their public liability cover before the contract is awarded to them.
Coverage of Employer’s Liability Insurance for Plumbing Companies
Employer’s liability insurance is different from public liability insurance as this one is a legal requirement according to the Employers’ Liability or Compulsory Insurance Act 1969 for plumbing companies with one employee or more.
Based on the law, it is the responsibility of all employers to ensure the safety and health of their employees while doing their job. If an employee suffers from injuries while working or falls ill because of the job, they may sue the employer and receive compensation. This obligatory insurance cover is meant to cover the costs of successful compensation claims.
The law requires employees to have an employer’s liability cover of a minimum of £5 million although many policies actually offer coverage of at least £10m. It is possible to increase the amount as needed. The law also requires employers to present in the workplace a certificate of employers’ liability insurance. The company may be required to pay a fine worth £2,500 if it doesn’t have the right cover.
Having the necessary insurance doesn’t change the obligation of the employer to look after the safety and health needs of the workforce. The provider of employer’s liability insurance may refuse paying a claim or might file a case against the employer for compensation payments that it makes if it is proven that the employer ignored its responsibilities in relation to this.