FEATURES 19
Insurance explained
By
Tanya Olckers
Running a small plumbing business involves navigating a host of challenges , and making sure you have adequate insurance coverage is paramount . We spoke to Ken Hawkins , insurance broker at Inscon Hawkins and Associates in Johannesburg .
All pictures supplied by Freepik
If you want to know anything about insurance , the best person to ask is someone who works in the industry . It ’ s easy to get confused about what to do for your business and for yourself , personally , in terms of insurance . What policies do you get ? What needs to be covered ? What risks do you have ? Ken Hawkins specialises in insurance and offered some advice for plumbers .
IOPSA executive director Steve Brown says , “ Insurance is a grudge buy until you need it . Trying to save money by not costing in insurance could cost you your business .”
This is undoubtedly true , as down the line if things go wrong , which they do , having cover can mean the difference between going under or keeping going .
“ Purchase a Contractors All Risks , blanket annual policy from a specialist Engineering Insurer for on-site risks ,” Hawkins advises . Monthly premiums can be arranged on this policy and it covers site works , liabilities , materials in transit and on site - along with various plant items .
A Commercial Insurance Policy is also valuable and this covers the plumbers premises : office contents , materials in stock , electronic equipment , vehicles , accident risks to staff , liabilities and all risks items like small tools .
And while taking care of your business with insurance is vital , it ’ s also important to remember that you need to cover yourself as well . Hawkins recommends personal life cover and disability and critical illness cover . this means that if you are unable to work , your business can go on and you and your family can still be provided for .
“ Income protection can be purchased to replace business overhead expenses as well as personal needs should a temporary or permanent disability occur ,” says Hawkins . “ This will assist with cash flow for the business while the owner is unable to work .”
A plumbing business can take out a freestanding specific contract liability policy or a blanket liability policy to cover liability matters on site . What does this mean ? Essentially , like any contractor , the plumbing contractor is also exposed to potential financial
October 2024 Volume 30 I Number 8 www . plumbingafrica . co . za