Plumbing contractors are highly skilled licensed tradesmen who install and repair pipes that carry water, gas, and other substances. In the past 100 years, nearly every building, from single-family homes to high-rises, has had at least one form of plumbing.

Like many construction trades, getting plumbing company insurance can be more challenging than in non-construction industries. Here are some tips to assist you in understanding the prerequisites and how to get the most affordable plumbing insurance.

Why Should Plumbers Buy Insurance?

With construction being among the most critical sectors that Commercial Insurance Ottawa insures, we’ve noticed the main reasons plumbers purchase insurance:

The Majority of States Demand Plumbers Have Liability Insurance

Suppose you are applying for or renewing an authorization to do plumbing services. In that case, some states require evidence of insurance liability for your plumbing company. The state’s requirements usually require plumbers to purchase an insurance policy for general liability or license bonds.

Plumbers Are Concerned About Protecting Their Business

The company you own supports your loved ones and your life and retirement plans. Many employees depend on your company’s success to provide for their families. You’ve spent hundreds of hours investing in your business and growing it. Therefore, it is sensible to secure it. As a company grows, most construction companies purchase comprehensive insurance or increase the limits of their insurance to safeguard their investments so that an accident doesn’t significantly impact the business.

Customers Require It

Although some residential plumbers do not need to think about this, plumbers doing commercial work are generally required to carry liability insurance. Commercial customers typically need general liability insurance, commercial auto liability policies, and worker’s compensation before a project begins.

What Kinds of Insurance Do Plumbers Require?

While plumbing insurance may appear different based on what size of your company and the type of work you’re doing, here are five insurances that almost every plumbing company needs:

General Liability

General liability for commercial use is a policy that all plumbing businesses must buy, regardless of the size or nature of their customer. For plumbers, the policy covers two critical aspects of your liability as a business:

  • Liability from “ongoing operations”: This risk arises from your presence at an employment site. It covers things that your employees cause damage to or injuries that get inflicted on employees who are not on the site.
  • Liability from “completed operations”: Liability for complete operations refers to the damage your work may cause after the project is completed and has to get used.

Workers Compensation

Companies that employ employees are typically required to purchase worker’s compensation insurance. The policy covers the medical expenses of employees injured while working and other costs like lost wages when the employee cannot work. In many states, worker’s compensation coverage must get provided by the law. It gets also required for many commercial customers.

Commercial Auto

Many plumbing businesses get equipped with a work van or work truck that they employ to transport their employees to every job site. In addition, the vehicle receives used for transporting equipment, tools, and supplies for various tasks. Commercial auto insurance protects your company from liability arising from your company vehicles. It also covers the car if it gets damaged by an accident or another incident.

Contractors Equipment

From hand tools for small jobs and trenching machines, plumbing professionals often are equipped with a lot of equipment needed to operate their businesses. The policy on equipment for contractors protects against the loss or damage to equipment or tools, whether due to an accident at the wheel or theft from a worksite. This insurance can allow you to buy replacement equipment and tools to ensure complete recovery when you suffer loss.

License Bond

Most states require you to buy a plumber’s license bond before obtaining an official plumbing license. Because of these bond cost-effectiveness and the enormous negative consequences of letting them expire, it is best to purchase them in three-year increments, should they be available in your state.

If you prefer to walk through your coverage and insurance requirements with an experienced insurance expert, call Commercial Insurance Ottawa at (613) 454-5640 or email us at for help.