What insurance records should I ask for when buying a plumbing or electrical contractor?

Plumbing and electrical work can fail long after the invoice is paid. A leak behind a wall or a faulty connection may show up in a year or in five. A buyer should therefore read the insurance file with that in mind, asking what past jobs have already cost and what protection still stands behind work already done.

Claims from past jobs

Ask for loss runs or claim summaries from the insurers, going back as far as they are available. Look for water damage, fire and property damage claims, and ask the owner what happened on each. Open or disputed claims matter most. Ask also about incidents that were handled without making a claim, since they can still tell you how the company works.

Cover for completed work

Ask which policies respond if a problem appears on a job finished before closing, and whether that depends on the policy being kept in force. Seller and buyer may need to agree who keeps cover going. Your insurance broker can explain how your own policy will treat earlier work. Do not assume the old policy carries over without confirming it with your broker.

Vehicles, tools and client certificates

Trucks and expensive tools are often the largest physical assets. Ask for the vehicle policies, the list of insured drivers and cover for tools and equipment in transit. Then collect the certificates that general contractors, property managers and commercial customers ask for. If you cannot reissue them on closing day, you may be locked out of work. See the due diligence guide for the wider records.