Plumbers Plan on Problems to Protect Yourself

Most people starting a plumbing business understand that they need to follow state and local regulations when working.  Sending out licensed plumbers will assure customers that all the work will be up to code and the employees will follow proper procedure.  This is a proper way to build a good business.  To protect both the business and the assets every plumbing company needs workers’ compensation insurance and to be bonded.  These are 2 responsible steps to take that will cost some money but work to save the business entity in case of an accident.

 

Workers’ compensation insurance covers employees who get injured while on the job.  All insurance plans vary, but most of them cover the basics of medical bills, rehabilitation bills, and lost wages.  An injured employee accepts workers’ compensation in lieu of taking the employer to court for damages.  Not only does this insurance cover the business, but it signals to employees that you are looking out for their interests too.  Plumbing is a very physical job with heavy equipment, tight spaces, and waste products.  The possibility for injury is there.  Every state has different requirements for workers’ compensation insurance.  Please refer to state business laws to discover required coverage.  Setting up workers’ compensation insurance requires finding a licensed insurance company that provides that type of insurance in your area.

 

Becoming bonded is important in ensuring customers that they will get quality plumbing.  Many people hear the terms “licensed and bonded” but don’t know what they mean.  Being licensed means that you know how to repair or install plumbing as set by state and local requirements.  Being bonded is a financial guarantee to your customer.  There are different types of bonds that guarantee payment for damages and guarantee you will do the work bid on.  Becoming bonded is not a complicated process.  Find a bonding company through a phone directory or online.  When you speak with them about a bond they will ask for your personal information.  The personal information is basic.  They will also perform a background check on you to make sure you are upstanding.  If satisfied with your background they will offer you a bond.  This bond will pay, at a price you determined, for any losses or damages that occurred as a result of your company.

 

Being a responsible business owner means that you think ahead and take steps to protect assets, employees, and customers.  Accidents are an unavoidable part of business, especially the plumbing trade.  Being bonded and having workers’ compensation insurance will give everyone involved peace of mind.  They will cost money, but the cost of not having them could be the loss of your business.