Finding a Contractor: Commercial Plumbing Contractor Liability Insurance Requirements

It is the basic responsibility of managers of facilities to find a plumbing contractor who can make life comfortable for the people working in their buildings and offices as well as the customers they serve. The complexities of building plumbing networks merit the need to choose the right commercial plumbing contractor who has the appropriate liability requirements to protect their companies’ interests.

Commercial Plumbing Expertise Requirements

Plumbing is much more than just unclogging drains and installing new faucets, especially in commercial buildings, factories, plants, mills and big residential buildings. Plumbers are responsible for constructing, maintaining and repairing heating, cooling, ventilation, water supply, wastewater disposal and fuel systems. Pipe-laying and pipefitting are intricate enough, but steam fitting is even more complicated because it involves high pressure systems that require the delicate handling of gas, steam and compressed air movements.

Business owners cannot turn a blind eye from the risks that may result from faulty plumbing. It is thus their duty to find a contractor who is not only qualified and experienced but also possesses the essential liability insurance requirements in case something wrong happens. The following liability insurance list contains some basic insurance covers that must be required and some that are optional depending on the scope of work and the risks involved:

  • General Liability Insurance –┬áThis is a plan that has a broad scope that protects both the contractor and the contracting client in cases of accidents and lawsuits. If the contractor’s firm is sued and is found legally responsible for injuries or damages, the insurance company takes care of the financial liability of the contractor up to the limit of the insurance coverage.

Depending on the coverage applied for, general liability insurance may answer for treatment expenses arising from physical injury caused by the contractor or any of his employees. Damage to the client’s premises and the contractor’s lawsuit expenses are likewise covered.

  • Workers Compensation Insurance – Business owners who are looking to find a contractor to meet their commercial plumbing needs must make sure that the employees of the contractor assigned on the project are adequately covered by workers compensation insurance. Aside from being mandated by law, this insurance will take care of the medical bills and rehabilitation costs of injured employees, lost salaries, permanent disability benefits and even bereavement reimbursement.
  • Umbrella or Excess Liability Insurance – This type of insurance is designed to take care of additional financial protection to the contractor in case his general liability insurance is not sufficient to cover other legal claims. Some insurance companies allow drawing up a customized plan to suit the needs of the applicant contractor. Aside from being applicable to bodily injury and property damage claims, excess liability insurance can also include claims arising from libel, character assassination, false arrest, illegal eviction, legal defense costs of the contractor and some others as may be approved by the insurer.
  • Bond Insurance – For large projects, this insurance may be necessary to ensure project completion. Among others, bond insurance can function as a performance bond to guarantee the performance and completion of the contracted work, bid bond to ensure that the contractor starts work on time after winning the bond, indemnity bond to pay for losses should the contractor fail to meet deadlines and payment bond to answer for payments to vendors and sub-contractors.

Business owners and managers of facilities trying to find a contractor for their plumbing projects have one important thing to remember, and that is to protect the interests of their businesses. Do so by confirming that your service providers have adequate liability insurance.

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