Plumbers in Victoria pay more (nearly double) for their public liability insurance compared to their counterparts in other states. See chart below:
On top of that many plumbers end up making the problem worse by singing up with wrong insurance companies because:
- Their broker didn’t know which insurer was offering the best price for their insurance
- They took advice from a mate who recommended somebody they knew
- Their bookkeeper put them on to their “insurance broking mate”
- Believed the story that all trades are a high risk and accepted high premiums are okay
- Got advice from a generalist and not a specialist in trades.
CoverTradie’s experience will help you understand the “ins” and “outs” of Plumbers Insurance in Victoria so that you can make the right choice when getting your Plumbing Insurance.
Plumbers Insurance Victoria Cost
The price of plumbing insurance in Victoria starts from about $105 per month for a small business with a turnover of $100,000. This should get you an insurance policy providing $5 million public liability coverage.
This also includes the Victorian Plumbers Warranty Insurance Scheme extension. Make sure you check that you have this extension on your policy before you make a purchase.
The cost does go up if you require higher limits on your liability coverage. For example if you were working with large commercial organisation as their subcontractor, they would most likely ask for a $20 million limit which means higher premium!
The table below shows the lowest, average and higher prices for plumbers insurance in Victoria that we came across for a business with turnover of $100,000.
|$5 Million||$ 1,242||$ 1,682||$ 2,118|
|$10 Million||$ 1,605||$ 2,004||$ 2,416|
|$20 Million||$ 1,980||$ 2,283||$ 2,750|
It’s easy to see that there is a huge variation between the cheapest, average and the highest premiums we have observed.
So what drives such a huge variation in the pricing?
There are a few factors that insurers consider to price a particular occupation. Different insurers give different level of importance to these factors, some of which we list below:
- Is there any consumer protection legislation for your trade that results in higher claim volumes, which increases insurance costs
- Your occupation risk – not all trades carry equal risk
- Business activities within your occupation – not all business activities carry equal risk
- Size of your business – higher turnover and staff count usually means higher risk of claims
- The market factors in a particular state, competition etc.
Does the premium increase as your business grows?
As your business size grows say the turnover has increased from $100,000 to say $300,000, you are likely to have a greater number of people working for you.
You may also be sub-contracting work out to other plumbers or trades. Usually this situation can lead to greater number of claims because quality controlling someone else’s work requires processes.
Many times though in the early stages of growth, the lack of controls in business can lead to oversight and mistakes which subsequently lead to claims.
Insurers know that from the data. They price it accordingly. So yes, the price of your insurance is likely to go up as the size of your business grows. See chats below:
You can’t control what insurers think and how they price insurance. You can make a choice of insurer and your broker. That will save you money.
So, select a broker who knows what they are doing so they can help you get where you want to – FASTER.
CoverTradie is a specialist insurance broker for tradesmen. If we can be of help to you, please give us a call. If you found this article useful, please consider sharing it on Facebook to help us get the word out.