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What insurance does a plumbing business need?

Q: What's the difference between general liability and workers' comp?

General liability covers injuries and property damage to *other people*: customers, the public, the building you're working in. Workers' comp covers injuries to *your own employees*. Most plumbing businesses with employees need both.

Most plumbing businesses need general liability, commercial auto, tools and equipment coverage, and workers' comp once they hire. As you grow, bonds, an umbrella and specialty coverages fill the gaps bigger jobs expose.

The short answer

A plumbing business usually needs four core coverages: general liability for damage and injuries your work causes, commercial auto for your vans and trucks, tools and equipment coverage for the gear that lives in them, and workers' comp once you have employees (required in most states). Many states and cities also require a license or permit bond. From there, the right add-ons depend on the work you do and the contracts you sign.

The core four

General liability

Damage and injuries your work causes, including problems that show up after the job is done. General liability for plumbers

Workers' comp

Medical bills and lost wages when a tech is hurt on the job. Required in most states once you hire. Workers' comp for plumbers

Commercial auto

Vans, trucks, trailers and the people who drive them for work. Commercial auto for plumbers

Tools and equipment

Theft and damage to jetters, cameras, press tools and van stock. Tools and equipment insurance

As you grow

Commercial umbrella

Higher liability limits for GC contracts and commercial jobs. Umbrella insurance

Performance and payment bonds

Bid, performance and payment bonds for public and large commercial work. Contract bonds

Installation floater

Materials and equipment you've installed or staged, until the owner accepts the job. Installation floater

Professional liability

For design work, backflow certifications and inspection reports. Professional liability

Specialty and required coverage

License and permit bonds

Often required to hold a plumbing license or pull permits. License and permit bonds

Pollution liability

Sewage, mold and bacteria claims many GL policies exclude. Pollution liability

Business owner's policy

Liability plus your shop and inventory in one package, for shops that qualify. BOP for plumbers

Service bonds and crime

For techs who work inside customers' homes and businesses. Service bonds

Coverage by the kind of plumbing you do

Residential service and repair

Commercial and new construction

Drain, sewer and septic

Coverage questions

What's the difference between general liability and workers' comp?

General liability covers injuries and property damage to other people: customers, the public, the building you're working in. Workers' comp covers injuries to your own employees. Most plumbing businesses with employees need both.

Does my commercial auto policy cover the tools in my van?

Usually not. Auto policies cover the vehicle and your liability for driving it. Tools and equipment are typically covered under a separate inland marine policy, often called a contractor's equipment floater.

Is a bond the same as insurance?

No. A bond protects your customer or the government if you don't meet your obligations, and you're expected to repay the surety for any claim it pays. Insurance protects your business. Many plumbers need both. See how to get bonded and insured.

What coverage do general contractors require from plumbing subs?

Commonly general liability with additional insured status, a waiver of subrogation, workers' comp, commercial auto, and often an umbrella. Exact limits vary by contract. Our certificate of insurance guide explains each requirement.

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