Leaky Pipe Install Flooded the Basement: Plumber’s Insurance Paid $75k Cleanup & Repair
The “Sweat” That Made Me Sweat
My plumbing company was repiping an entire house. One of my guys didn’t properly sweat a single copper fitting in the basement. It held during the pressure test, but that night, it let go. The basement, which the owner had just finished with a new home theater, was flooded with a foot of water. The damage was over $75,000. I thought my business was sunk. But my general liability insurance covered everything: the water extraction, the mold remediation, and the cost to completely rebuild the basement. It saved my company.
Don’t Let Water Damage Claims Sink Your Business: Insurance Guide for Plumbers
Your Worst Enemy is Your Best Friend
As a plumber, your entire life revolves around water. It’s your best friend—the source of all your business. But it’s also your worst enemy. One loose fitting, one cracked pipe, one forgotten cap, and that same water can cause catastrophic damage, mold, and rot. Your insurance policy is the only thing that lets you work with that much risk every day. It’s the shield that protects you from your own worst enemy, ensuring that one “oops” doesn’t wash your entire livelihood down the drain.
Plumber Insurance Needs: CGL (Water Damage!), Workers Comp, Tools, Commercial Auto
Your Four Essential Fittings
For a plumber, your insurance package needs four essential fittings to be watertight. First is Commercial General Liability (CGL), which is number one for covering accidental water damage. Second, if you have an apprentice, you must have Workers’ Comp. Third is Inland Marine insurance, which protects the thousands of dollars of drain snakes, jetters, and tools in your truck. And fourth is Commercial Auto coverage for the truck itself. If any one of those fittings is missing, your whole business is vulnerable to a leak.
The #1 Risk for Plumbers: Accidental Water Damage During or After Installation
A Geyser in the Kitchen
My employee was replacing an angle stop under a kitchen sink. When he tried to turn the main valve back on, the old, corroded valve broke, and a geyser of water started shooting up, flooding the kitchen. It took him 20 frantic minutes to find the street shutoff. By then, the damage to the cabinets and floors was immense. Our CGL policy covered the claim, but it was a perfect example of the #1 risk for our trade: you are constantly working with a pressurized, destructive force that can be unleashed in seconds.
Completed Operations Liability: Critical for Slow Leaks Appearing Later!
The Drip That Became a Disaster
We installed the plumbing for a new second-floor bathroom. Everything tested perfectly. Six months later, I got a call from the homeowner. A tiny, slow drip from one of our connections had been seeping into the ceiling below. Now, the living room ceiling was a sagging, moldy mess. The damage was huge. This is the classic “completed operations” claim. It wasn’t a sudden flood; it was my work failing long after I left. This specific coverage is arguably the most important part of a plumber’s liability policy.
Workers’ Comp for Plumbers and Helpers (Lifting, Confined Spaces)
The Heavy Water Heater and the Herniated Disc
I hired a strong young apprentice to help me out. Our first big job together was removing a heavy, 80-gallon water heater from a cramped basement closet. We twisted the wrong way, and he felt a sharp pain in his back—a herniated disc. He needed surgery and was out of work for months. My Workers’ Compensation policy was a lifesaver. It paid all his medical bills and a portion of his lost wages. It’s essential coverage for a job that involves constant heavy lifting in awkward, confined spaces.
Protecting Your Drain snakes, Jetters, and Other Plumbing Tools (Inland Marine)
The Tools That Walked Away
I left my work truck parked on a residential street while I was on a job. I came out two hours later to find the locks broken and my truck cleaned out. They took everything—my sewer camera, my power drain snake, my ProPress tool. It was over $15,000 worth of equipment. My auto insurance only covered the truck. What saved my business was my Inland Marine tool and equipment policy. It provided a check to replace my gear so I could get back to earning a living.
Comparing Insurance Quotes Tailored for Plumbing Contractors
A Policy That Knows Water Damage
When I started my business, I got a generic contractor’s insurance quote that was very cheap. I showed it to my mentor. He pointed out that it had a limited water damage sub-limit and a total mold exclusion. “This policy is worthless for a plumber,” he said. He recommended a carrier that specialized in the trades. The specialist policy was more expensive, but it provided high limits for water damage and specific coverage for mold remediation. I learned that for a plumber, a cheap policy is often the most expensive one.
Does Your Policy Cover Mold Remediation Costs Arising from Your Water Damage? Check Exclusions!
The Fungus Among Us
A slow leak from a toilet my company installed caused a major mold outbreak in a client’s wall cavity and subfloor. The mold remediation alone was going to cost $20,000, on top of the water damage repairs. I was horrified to learn that many standard liability policies have an exclusion for mold. Luckily, when I bought my policy, my agent insisted on adding a specific “mold coverage” endorsement. That small, extra rider was the only thing that covered the massive cleanup cost.
Filing a Claim for Water Damage Caused by Your Plumbing Work
The Call That Started the Cleanup
I got a panicked call from a client on a Saturday morning. The new water heater we installed was leaking all over their finished basement. I told them where the main shutoff was, then immediately called the 24/7 claims number on my insurance card. They didn’t just take a report; they dispatched a water damage restoration company that was on site within two hours. By handling the response so quickly, my insurance company minimized the damage and showed the client we were taking it seriously.
My New Faucet Leaked Everywhere: Calling the Plumber (and Thinking About Their Insurance!)
The Drip That Made Me Grateful for Professionals
My brand-new kitchen faucet, installed by a licensed plumber, started dripping under the sink. I called him, annoyed, but also weirdly calm. I knew that because he was a professional, he had liability insurance. If this small drip had turned into a big flood that ruined my new cabinets, his “Completed Operations” coverage would be there to fix it. That’s the difference. When you hire an insured pro, you’re not just paying for the work; you’re paying for the financial backstop if the work fails.
Meeting State Licensing Insurance Requirements for Plumbers
The Paperwork That Keeps You Legal
When I applied for my master plumber license, I had to show the state board two things: that I had passed the exam, and that I had an active general liability insurance policy with specific minimum limits. They told me if my insurance ever lapses, my license is automatically suspended. Your insurance policy isn’t just a good idea to protect you from lawsuits; it’s a legal requirement of the profession. You can’t legally operate a plumbing business without it.
Protecting Your Business from Costly Water & Mold Lawsuits
Your Business’s Sump Pump
As a plumber, you’re always one broken fitting away from a flood of liability. A single water damage claim can quickly spiral into the tens or even hundreds of thousands of dollars, especially if mold gets involved. Think of your liability insurance policy as your business’s emergency sump pump. It sits there silently, ready to kick on the moment a disaster happens. It pumps out the financial damage from a claim, keeping your business dry and preventing you from going under.
Coverage for Gas Line Work or Septic Systems? Ensure Policy Includes It!
The Explosion That Wasn’t Covered
A plumbing company that mostly did water and drain work took on a side job installing a natural gas line for an outdoor grill. They didn’t check their insurance policy. A small leak in their work led to an explosion that damaged the client’s home. When they filed the claim, their insurer denied it. The policy had a specific exclusion for “gas line operations” because it’s a much higher risk than standard plumbing. It was a catastrophic lesson: always ensure your policy explicitly covers every type of work you do.
Plumber Insurance: Keeping Your Business Financially Watertight
The Ultimate Backflow Preventer
In plumbing, a backflow preventer is a critical device that stops contaminated water from flowing back into the clean water supply. Your insurance policy is the ultimate financial backflow preventer for your business. When a disastrous claim happens, it creates a flood of liability and financial loss. Your insurance stops that toxic financial loss from flowing back into your business and personal bank accounts, keeping your livelihood safe and clean.