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Plumbing Contractor Insurance

As a licensed contractor, you are often required to carry plumber insurance by state and local jurisdictions, especially if you want to bid on public projects or work with large contractors. These requirements are not just bureaucratic hurdles; they protect you and your clients by ensuring that you have the financial backing to cover potential damages or injuries. In many cases, your clients or general contractors will require proof of insurance before they’ll even consider hiring you. For example, they may ask for a certificate of insurance that shows you have the required coverage limits and types of insurance necessary to perform the work safely and responsibly.

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General Liability
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Auto Insurance
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Workers Compensation
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Tools Coverage
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Bond

What Can Plumbing Contractors Do

  • Plumbing Installation and Repair: Install and repair pipes, fittings, fixtures, and other plumbing equipment used for water distribution and wastewater disposal in residential, commercial, and industrial buildings.
  • Heating Systems: Install and service heating systems, including boilers, furnaces, and heat pumps.
  • Air-Conditioning Systems: Install and repair air-conditioning systems, including central air units and ductwork.
  • Water Heater Installation and Repair: Install and service water heaters, including tankless systems.
  • Backflow Prevention Devices: Install and maintain devices that prevent backflow of contaminated water into clean water supplies.
  • Gas Lines: Install and repair gas lines used for heating, cooking, and other appliances.

What Can't Plumbing Contractors Do

  • Electrical Work: Unless they have the proper licenses and qualifications, plumbing contractors cannot perform general electrical work, such as wiring or installation of electrical panels.
  • General Construction: They typically cannot take on tasks that fall under general construction, such as framing, roofing, or other structural work unless they have the appropriate licensing.
  • HVAC Refrigeration Systems: While plumbing contractors can work on some aspects of HVAC systems, specialized refrigeration work often requires additional certification or a separate license.
  • Complex Engineering Work: Plumbing contractors usually cannot engage in activities that require engineering certifications, such as designing complex plumbing systems for large industrial projects.

These restrictions can vary depending on local laws and regulations, so it is essential for contractors to be aware of the specific licensing requirements in their jurisdiction.

Business Owner's Policy (BOP)

  • Coverage: This policy bundles general liability and property insurance into one, providing a comprehensive package that protects your business from multiple risks.
  • Importance: It simplifies your insurance needs by combining essential coverages into a single policy, often at a lower premium than purchasing each coverage separately.

Business Auto Insurance

  • Coverage: This covers vehicles you use for business, including accidents, theft, and damage.
  • Importance: Given the amount of travel between job sites, this is crucial for ensuring that any vehicle damage or liability is covered.

Surety Bond

  • Coverage: Guarantees that you will complete a project as agreed upon in a contract.
  • Importance: Many clients, especially government agencies, require this as part of their hiring process to protect against financial loss if a project isn’t completed.

Workers Compensation

  • Coverage: Provides wage replacement and medical benefits to employees injured on the job.
  • Importance: Not only is this legally required in most states, but it also protects your business from lawsuits related to workplace injuries.

Excess Liability Insurance (Umbrella)

  • Coverage: Provides additional liability coverage beyond your standard policies.
  • Importance: It’s essential if you want to protect your business from large claims that exceed your primary coverage limits.

Claim Examples for Plumbers

Bodily Injury

Coverage: A client trips over your equipment at their home and breaks an ankle.
Importance: Premises liability covers medical costs and legal fees, protecting your business from financial strain.

Property Damage

Coverage: A pipe bursts during installation, causing extensive water damage to a client’s home.
Importance: Completed operations coverage would handle repair costs and any legal fees resulting from the claim.

Business Interruption Loss

Coverage: A fire at your workshop forces you to pause operations for two weeks.
Importance: Business interruption insurance covers lost income during the downtime, helping you maintain cash flow.

Business Personal Property Loss

Coverage: Your tools are stolen from your truck at a job site.
Importance: This coverage helps replace essential equipment so you can continue working without significant delays.

How Much is Plumbing Insurance?

The cost of plumbing insurance varies based on several factors, including the size of your business, the number of employees, the types of services you provide, and your location. Other factors that may influence your premium include your claims history, the coverage limits you select, and any additional coverages you choose to include. We can offer competitive rates tailored to your specific needs, ensuring that you have the right protection without overpaying.

Q&A for Plumbing Insurance

We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.

How is the price of plumbing insurance determined?

Insurance premiums are based on several factors, including the location, operation characteristics, number of owners, employees, claim history, and more.

What to know before buying plumbing insurance?

Obtain all your insurance requirements from your contractors, subcontractors, vendors, clients, or state or local government office before you purchase this insurance. This ensures that all your requirements are addressed.

How soon can I get plumbing insurance?

The buying process can take less than 15 minutes, allowing you to quickly secure the coverage you need and get back to work without delay.

How to prevent jobsite accidents?

  1. Proper Training: Ensure you’re trained in plumbing safety and procedures.
  2. Wear PPE: Always use gloves, goggles, and protective clothing.
  3. Tool Inspection: Regularly check tools for wear and tear.
  4. Work in Ventilated Areas: Ensure proper ventilation when working with chemicals or in confined spaces.
  5. Avoid Chemical Hazards: Handle plumbing chemicals with care and follow safety guidelines.
  6. Prevent Slips: Keep the work area dry and clear of obstacles.
  7. Ladder Safety: Secure ladders properly before climbing.
  8. Beware of Hot Pipes: Use caution when working near hot water lines.
  9. Check for Gas Leaks: Always test for gas leaks before working on gas lines.
  10. Emergency Preparedness: Know the location of shut-off valves and be ready to act quickly in case of a leak or spill.

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