For every plumbing contractor in Michigan, there's one insurance policy that forms the absolute bedrock of protection: General Liability Insurance. Often simply called GLI, this coverage is not just a smart investment; it's a non-negotiable requirement for operating legally and confidently in the Great Lakes State.

In the first post of our series for plumbing companies, we discussed why business insurance for plumbers is essential. Today, we're diving deep into the cornerstone policy that protects your business from the everyday mishaps that can quickly turn into financial disasters.

What is General Liability Insurance, and Why is it Crucial for Michigan Plumbers?

Think of General Liability Insurance as your business's primary shield against third-party claims of bodily injury or property damage. If your work or operations accidentally harm someone or damage something that isn't yours, your GLI policy steps in to cover the costs.

For Michigan plumbers, this isn't just a hypothetical scenario. Consider these common situations:

• The Unforeseen Slip: You've just finished a water heater installation in a client's basement. On your way out, you accidentally leave a small puddle of water, and the homeowner slips, falling down the stairs and injuring themselves. Your General Liability policy would cover their medical expenses and potential legal fees if they decide to sue.

• Accidental Property Damage: While rerouting pipes, your apprentice accidentally severs an electrical wire and ruins a light fixture in the process. Or, during a sewer line repair, your equipment causes an unexpected crack in a customer's driveway. GLI helps pay for the repair or replacement of the damaged property.

• Advertising Injury: Less common but equally important, GLI can also cover claims of "advertising injury," such as libel, slander, or copyright infringement related to your business advertising.

Michigan Licensing and Client Requirements

Beyond protecting you from costly accidents, General Liability Insurance is often a prerequisite for doing business in Michigan.

• State Licensing: As a licensed plumbing contractor in Michigan, you are required by the Michigan Department of Licensing and Regulatory Affairs (LARA) to carry adequate General Liability Insurance. Without it, your license could be at risk, and you could face significant penalties.

• Contractual Obligations: Most general contractors won't even consider partnering with an uninsured plumber. Residential and commercial clients alike frequently request proof of GLI coverage before you can start any project on their property. It assures them that if something goes wrong, they won't be left footing the bill.

What General Liability Insurance Doesn't Cover

While incredibly comprehensive, it's important to understand the limits of General Liability Insurance:

• Employee Injuries: This falls under Workers' Compensation insurance, which is legally required in Michigan if you have employees.

• Damage to Your Own Property/Tools: For your own equipment and materials, you'll need policies like Inland Marine insurance.

• Professional Mistakes: If a client claims your advice or a design flaw in your work caused them a financial loss (not physical damage), that typically requires Professional Liability (E&O) insurance.

• Vehicle Accidents: Accidents involving your company vehicles are covered by Commercial Auto insurance.

Your Shield in the Great Lakes State

For Michigan plumbing contractors, General Liability Insurance isn't just another bill; it's an investment in peace of mind. It allows you to focus on delivering quality plumbing services, knowing that you're protected from the unexpected daily risks. Don't let a single accident jeopardize your hard-earned business.

Ensure your Michigan plumbing business has the foundational protection it needs. Contact Redwood Insurance Solutions today for expert guidance on securing your General Liability coverage!