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In most states of Australia the insurance requirements for plumbers are fairly standard.
But when it comes to Victoria there are some important differences, and without the right insurance you won’t be able to obtain or renew your license.
Working as a plumber in Victoria without a current insurance policy that meets the requirements is an offense, so it’s not something you want to get wrong.
Insurance requirements
The insurance requirements for Victorian plumbers are outlined in the Ministerial Order “Licensed Plumbers General Insurance Order 2002“.
The Ministerial Order requires that licensed plumbers hold an insurance policy which indemnifies them in respect of domestic plumbing work:
- for public liability and completed work liability for an amount of at least $5,000,000 for any one occurrence; and
- for all other liability under Part 2 for an amount of at least $50,000 for any one claim or series of claims in relation to a compliance certificate (or if the compliance certificate relates to more than one home, at least $50,000 for each home); and
- for the reasonable legal costs and expenses associated with the successful enforcement of a claim against the plumber or the insurer.
So what does all this mean in layman’s terms?
Basically you need the following:
- $5,000,000 public liability insurance
- $50,000 consumer protection insurance
Both of these covers are offered under a single policy, with the consumer protection portion simply being an option on the public liability policy.
Not all insurers offer this option, so if you are taking out cover, make sure your broker is up to speed on the Victorian plumbing licence requirements.
Non-domestic work
The requirements for non-domestic plumbing work are broadly the same as outlined above, however the consumer protection requirement jumps from $50,000 to $100,000.
If you are undertaking non-domestic plumbing work you must let your insurance broker know.
Will I ever need more than $5 million cover?
As far as your license is concerned, the only required amount of public liability is $5 million regardless of the type of work you are undertaking.
However this does not stop other organisations requesting a higher amount of cover.
This generally occurs when you undertake work on larger projects, and especially those which are heavily frequented by the general public.
Examples may include building work within shopping centers or hotels.
In this case the higher levels of cover required are set by the building or construction company, and have nothing to do with licensing.
You can always increase or decrease your cover at any time, so as you take on different contracts you can adjust your cover without having to start a new policy.
Quotes and more information
Our network of insurance advisers are well aware of the requirements for licensed Victorian plumbers and can help you to obtain the right coverage.
To be put in touch with an adviser please call us on 1300 542 245 or complete our online quote request.