Marsh Insurance

Understanding insurance

Natasha Golden, Principal Insurance Broker for the Marsh trades’ team, answering your questions on plumbers’ insurance.

As the principal insurance broker for the Trades team at Marsh and wife to a tradie myself, I see first-hand the time constraints placed on business owners and contractors in the industry. For every plumbing service completed there is the behind the scenes office admin to match. This admin work is often completed after a day onsite and the last-thing that any tradie needs is unanswered questions around their insurance taking up more of their time. To help, I’ve answered some of the most frequently asked questions our team receives from tradies.

As a subbie, am I covered for public liability insurance under the business that has hired me? Unfortunately, this is not a simple yes or no answer. There are situations where the sub-contractor can be covered under a client’s public liability policy and others where they would be required to cover the claim under their own. As this is circumstantial, we strongly recommend sub-contractors arrange their own public liability insurance to ensure they are appropriately covered. If a sub-contractor injures a third party or damages their property while completing the work they were hired for, they may be covered by their client’s public liability policy to a certain extent. However, if for example a sub-contractor is negligent and leaves his tools out causing a third party to trip and injure themselves, then this claim may need to be made under the sub-contractor’s policy.

Do plumbers need professional indemnity insurance? Plumbers may require professional indemnity insurance if they are providing advice or design services to clients as part of their business activities. Professional indemnity insurance can help cover a plumbing business against allegations of negligence involving an alleged breach of professional duty. Such cover is ordinarily excluded under public liability insurance. We recommend you contact your insurance broker to determine if your business activity exposes you to any of these risks.

Does Marsh offer monthly payment options for plumbers insurance? Yes, the team at Marsh can organise monthly instalments* provided you meet certain criteria. Please contact the team if you are looking to arrange insurance with Marsh on a monthly payment option.

* Interest and additional fees may be applicable. How often should I review my insurance? The answer to this question is dependent on how often changes occur to your business. Whether it’s business growth, a change in the complexity of work or expanding your services, there are several changes that should trigger an insurance review.

As a rule of thumb, we recommend reviewing your policy every year to ensure your business is covered appropriately for its risk exposures.

Does a contractor need personal accident insurance or worker’s compensation insurance? It is advisable for sole traders to take out personal accident insurance in the event they suffer a serious injury or death as the result of an accident. Compared to other workers, they may be less able to have time off for injury or illness as an extended period of leave may limit their ability to maintain a stable income.

Personal accident insurance is designed to cover an insured against loss of income and, based on the cover purchased, can provide financial cover for bills and other expenses. If a contractor has employees, they may need to arrange Workers’ Compensation cover. Workers compensation insurance covers the wages of employees if they suffer a serious work-related injury or death. Talk to the team at Marsh to see how we can help with your plumbing business insurance enquiries on 1300 300 511 or trades@marshadvantage.com

Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369) (Marsh) arranges this insurance and is not an insurer. When arranging Public Liability Insurance, Marsh act under binding authority on behalf of Pacific Underwriting Corporation Pty Ltd (ABN 77 091 225 535, AFSL 237 270), who act as agent of the insurer, Chubb Insurance Australia Limited (ABN 23 001 642 020 , AFSL 239 687). This article contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire the product, refer to the specific policy wordings available from Marsh. The Master Plumbers and Mechanical Services Association of Australia receives a financial benefit when an insurance policy is arranged by Marsh. LCPA: 20/588