Plumbers Coverage Guide
Water damage subrogation is the dominant loss type — a single failed connection in a multi-unit building can trigger six-figure claims. Carriers scrutinize completed-operations coverage for plumbing risks.
Critical Coverage
General Liability
Covers third-party bodily injury and property damage claims
What it covers
Third-party property damage and bodily injury — including water damage from failed connections, completed-operations claims, and damage to other contractors' work on shared job sites. Water damage is the #1 plumbing claim type by frequency and severity.
Common misconception
Plumbers think water damage to a building is automatically covered. The connection itself (your work) is excluded — but the damage to drywall, flooring, neighboring units, and contents is covered. The line between the two drives every plumbing claim dispute.
What it does NOT cover
Damage to your work (the failed pipe itself). Mold (often sub-limited or excluded). Damage from prior leak you missed. Pollution (sewage often disputed).
The gap — what happens without it
You braze a copper joint in a 4-story condo. Three weeks later it fails at 2 AM, flooding 3 units below — $180K in damage. Your GL pays the damage to other units. Without GL, you owe the entire claim, plus your reputation in the building.
What drives your premium
Annual revenue, residential vs. commercial, multi-family work (highest), service vs. new construction, prior water claims, years licensed
Endorsements to ask about
Mold/microbial coverage (capped, but better than nothing). Water-backup. Additional insured for property managers and GCs.
Workers' Compensation
Covers employee injuries and illnesses on the job
What it covers
Medical and lost wages for plumbing-trade injuries: chemical burns from drain cleaners, back injuries lifting cast iron, scalding from hot water lines, sewer-gas exposure, slip/fall in trenches.
Common misconception
Owners think helpers/apprentices count as 'casual labor' to skip WC. Most states require WC starting with the first non-owner employee. Calling someone a 1099 doesn't help — the state looks at who controls the work.
What it does NOT cover
Owners electing exemption. Independent contractors with their own WC. Drug/alcohol-related injuries. Off-duty injuries.
The gap — what happens without it
Your helper inhales sewer gas during a backup call — pulmonary edema, ICU stay, $85K medical. Without WC, your business pays out of pocket and the helper sues alleging failure to provide PPE. WC's exclusive remedy provision (which protects you from lawsuits) only applies if you carry it.
What drives your premium
Payroll, class code 5183 plumbing (mid-range), experience mod, state, drain/sewer work (higher), safety program
Endorsements to ask about
Voluntary comp for owners. USL&H endorsement if working on docks/marinas. All-states coverage.
Commercial Auto
Covers vehicles used for business purposes
What it covers
Liability and physical damage on service trucks, vans, and trailers. Plumbers typically run 1–10 vehicles with high mileage and frequent stops.
Common misconception
A single-truck plumber thinks personal auto suffices because 'it's just one vehicle.' Carriers will deny when the vehicle is registered to a business or has commercial signage.
What it does NOT cover
Vehicles not on the policy. Tools/cargo (inland marine). Hired or non-owned vehicles. Drivers excluded by name.
The gap — what happens without it
Your tech is rushing to a flooded basement, runs a yellow light, and T-bones a Civic — $220K injury claim. Without commercial auto, your personal policy denies the claim and the injured family sues you and your business directly.
What drives your premium
Number of vehicles, vehicle weight, driver MVRs, radius (24/7 emergency service is higher), claims history
Endorsements to ask about
Hired auto for rentals. Drive-other-car for owners. Broadened pollution for fuel/sewage spills from your vehicles.
Important Coverage
Commercial Umbrella
Extends limits above your primary policies
What it covers
Excess limits over GL, auto, and EL. Multi-family water damage and severe auto claims regularly exceed $1M.
Common misconception
Plumbers think $1M is enough until they see a $4M condo flood claim hit a colleague.
What it does NOT cover
Pollution unless underlying. Punitive damages (some states). Workers' comp medical (already statutory unlimited).
The gap — what happens without it
A failed soldered joint in a high-rise condo causes $3.5M of damage across 9 units. $1M GL pays its limit; the other $2.5M comes from your umbrella. Without it, your business is gone and you're personally exposed.
What drives your premium
Underlying limits, multi-family work %, fleet size, revenue, claims
Endorsements to ask about
Follow-form over GL, auto, EL. Per-project aggregate.
Inland Marine (Tools & Equipment)
Covers tools, equipment, and materials in transit or at job sites
What it covers
Drain machines, cameras, locators, jetters, and hand tools at job sites or in transit. Plumbers carry a high tool value relative to revenue.
Common misconception
Plumbers undercount the value of cameras, jetters, and high-end power tools. A truck full of equipment can easily exceed $40K of replacement cost.
What it does NOT cover
Wear and tear. Items in unlocked vehicles overnight. Equipment in standing water (one carrier exclusion). Mechanical breakdown.
The gap — what happens without it
A camera and locator are stolen from a jobsite trailer over the weekend — $9K replacement. Without inland marine, you eat the cost and have to delay every camera-required call until you can replace.
What drives your premium
Total scheduled tool value, jetter horsepower, claims history, locking practices
Endorsements to ask about
Camera/locator scheduled. Rented equipment. Employees' tools.
Pollution Liability
Covers environmental contamination claims excluded by GL
What it covers
Sewage backup contamination, leak-test chemical spills, and discharge of contaminated water that GL's absolute pollution exclusion blocks. Especially relevant for sewer/drain specialists and septic work.
Common misconception
Plumbers think 'we don't really cause pollution.' The CGL pollution exclusion is broad — it picks up sewage, fuel/heating oil leaks you accidentally tap, and even some refrigerant. A single sewage backup that contaminates a basement can trigger a denial.
What it does NOT cover
Pre-existing contamination. Knowing discharge. Asbestos and lead unless added. Underground tank damage from excavation (separate coverage).
The gap — what happens without it
You're snaking a main when the line collapses, backing 600 gallons of raw sewage into a finished basement. Cleanup, drywall, sub-floor replacement, and Category 3 water remediation hit $42K. GL's pollution exclusion blocks coverage. Without a pollution policy, you pay it all.
What drives your premium
Sewer/drain work as % of revenue, septic, hydronic heating systems, geographic area (older neighborhoods = older mains)
Endorsements to ask about
Transportation pollution (truck spills). Mold remediation sub-limit. Backup of sewer/drain rider on GL.
Not sure what you need?
Text us your trade and state — we'll tell you exactly what coverages apply to your business and shop the market for the best rate.