What type of insurance does a California plumbing contractor need?

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Insurance for plumbers

Any good plumbing contractor knows that even with the most prepared and careful workers, things can and do go wrong. Therefore, it is essential for you to protect your business, your client, and yourself. That’s where insurance comes in. If you’re just getting started with your plumbing contractor business, go through our checklist for starting a contractor business in California.

Plumbing Contractor General Liability

Contractor general liability insurance protects your business against costly lawsuits, claims and other financial liabilities resulting from accidents, negligence, or mistakes. The cost of a plumbers general liability insurance plan will be determined based on the amount of coverage that is needed. It is not unusual, especially in California, for homeowners and business owners to require a $1,000,000 minimum coverage. There are many payment options available and we can help you find a solution that fits your capital resources, especially if you’re just starting a new plumbing contractor business.

Property Insurance

Even if you don’t have a physical location, you’ll want to make sure that you have property insurance for your plumbing business. These policies also protect your plumbing equipment and tools.

Worker’s Compensation

If you have even just one employee, then you must have Worker’s Comp insurance… it’s the law in California. Just like any insurance policy, it’s one of those things that you’ll be so glad you have it if you ever need it. If, for example, an employee injures himself (even if it’s not his fault) and is unable to work for a long time while also requiring a substantial amount of medical procedures, your company would be liable for all of those medical payments. Worker’s Compensation insurance covers those costs.

Commercial Vehicle Insurance

Contrary to popular belief, a personal insurance policy will not cover business use. If you drive a vehicle to a job site and that vehicle is carrying materials and tools needed to complete that job, then it is a commercial vehicle and requires a separate business auto insurance policy.

Plumbers Liability Insurance

These policies are basically an extension of the general liability insurance policy and will cover more specifics of a plumbing contractor business. Some of the risks that are covered are damages during new construction, damages to existing pipes, and damages from gas explosions.

Pollution Liability Insurance

Due to the rise in asbestos and other harmful pollutants, general liability policies now have exclusions for pollution. And even though asbestos has been banned for many years, plumbers are still at risk for asbestos and other pollutants such as lead and mold. Remodels can expose a plumber to these pollutants occurring, including Chinese drywall, joint compound sprays, duct wrapping, or any wet building materials. Pollution liability insurance can cover costs associated with pollutant cases including medical bills and legal fees.

Business Owners Policy

Rather than having to buy each policy individually, a qualified insurance broker can put together an insurance portfolio that is tailored to your specific needs. Having the right plumbing insurance plan can protect your business from unwanted financial disaster as well as provide peace of mind so you can focus on other aspects of your business.


If your plumbing business is in California and you would like to have an extensive plumbing insurance portfolio that is cost effective, fill out our business insurance quote form and get a free plumbers contractor insurance quote from one of our qualified insurance agents.


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