The Insurance requirements for Plumbing Contractors can be very complicated. This page is designed to provide a very clear and concise description about the types of Insurance and Bonds you will need in order to protect your Business and satisfy the requirements of your clients and the municipalities where you will work.
After reviewing, contact our agency and we will work with you to design the right coverage with a very competitive premium for your Business:
The Coverage You Will Need
1. What is Plumbers General Liability Insurance:
Unfortunately all businesses are subject to lawsuits. No matter how careful you are or how well trained your employees are, accidents still happen.
General Liability Insurance will protect your company from accidents that result in property damage, bodily injury and more.
- If you are a Commercial Missouri Plumbing Contractor, you will likely be required to have a minimum of:
- $1,000,000 Each Occurrence Limit (the most the company will pay per claim) and
- $2,000,000 General Aggregate, (the most the company will pay per policy term)
How much is Plumbers Liability Insurance:
The Premium charged by the Insurance Company will be determined by your estimated annual payroll for your Plumbers during the policy term and subject to the actual (since you can only estimate your payroll at the beginning of the policy term) payroll at the end of the policy term.
If you are just starting your Business and you will be the sole Plumber, a good Liability premium estimate would be between $500-$800 per year and this would apply for limits up to a $1,000,000 per occurrence.
As the Owner/Officer of the Business, your estimated payroll is not required. The Insurance Companies use a flat payroll amount for Officers.
The General Liability Policy has to issue correctly for Your Business:
General Liability (GL) coverage is not uniform. If you ask 2 Plumbers how many pages their General Liability Policies have, you can almost guarantee you will get two different answers.
As the saying goes the "Devil is in the Details" – with GL policies the Devil lies in the Several Exclusion and Limitation endorsements that are often added (and should be removed) to an Plumber's GL Policy – not to mention the Additional Coverage endorsements that should be added.
The addition of any one of these Exclusion or Limitation endorsements or the absence of an Additional Coverage endorsement can prove devastating for a business owner at the time of loss.
There has to be a Solid Understanding of your Operations in order to make certain the policy issues correctly and your Business is Properly Protected. This can not be accomplished with an online policy.
Plumbers General Liability Insurance Video:
Contact us today:
2. Workers’ Compensation for Plumbing Contractors
Plumbing Contactors, are required to have Workers’ Compensation in Missouri with even with just one employee (Non-contracting employers are required with 5 or more employees).
Missouri Plumbers that do not have coverage may be subject to a significant financial penalty from the State. However, even more importantly, any Missouri Employer without Work Comp coverage is subject to Civil Suits brought against them by their injured employees.
It only makes sense to have Plumbers’ Work Comp coverage to protect your employees and your business.
Plumbers' Work Comp Insurance Video:
Contact us today for a Work Comp Proposal for your Business:
Ph. 636-519-0059 or
3. Business Auto Insurance
One of the most common claims for Plumbing Contractors are auto accidents. Your operation requires the use of good sized vehicles, with significant amount of added weight in project material and tools and a lot of weekly miles.
Claims latter in the day are more common as good hardworking technicians may be fatigued and more susceptible to distraction.
Due to the very sizeable Bodily Injury Claims that can result from Auto accidents, a Combined Single Limit* of no less than $1,000,000 to protect your business is strongly recommended. The difference in premium between $1mil and $500,000 is typically not that significant.
*Combined Single Limit = The limit of protection for Bodily Injury and Property Damage Claims.
4. What Bonds do Plumbers Need:
License and Permit Bonds for Plumbing Contractors
A license and permit bond guarantees that your business will operate in compliance with the building codes established by State, County, City, etc. The bond is a requirement to receive your Plumbing Contracting License from a Municipality.
- St. Louis County, MO requires Plumbing Contractors to have a $25,000 License and Permit Bond
- A good annual premium estimate is about $250
Plumbers License and Permit Bond Video:
Union Plumbing Contracting Employers:
If you are a new Business and a Union Plumber you be required, by the Union, to have a Wage and Benefits Bond (aka Wage and Welfare Bond).
This Bond is a guarantee that required wages will be paid to all employees and benefits (agreed to in the Collective Bargaining Agreement) will be paid to the Union.
If a MO Union Employer does not compensate employees or pay agreed benefits to the Union, the Union can seek recovery from the Bond Carrier.
Wage and Welfare Bonds are considered higher risk as they account for more claims relative to other types of Bonds. Accordingly, if an Employer has poor credit, this Bond could prove challenging to obtain.
Plumbers' Wage and Benefit Bond Explained:
Your Clients and Municipalities will want proof that your Business is Insured:
The Municipalities, where you are licensed to operate, will require you to provide proof of Insurance.
Many Clients (especially Commercial Clients) will also require you to provide proof of Insurance before you are allowed to start a project (and maybe again before they will pay you for your work).
To do this, you will simply call or email us and let us know who requires proof of Insurance and we will send your Certificate of Insurance to your client and copy you.
The following video illustrates a sample Certificate of Insurance (COI) and what your client will be looking for on the COI.
Whether you are just staring your business or have been operating for years, contact our Office for an Insurance Proposal for your Business.
Contact us today for all of your Insurance and Bond Needs:
Ph. 636-519-0059 or
Additional Coverage Considerations:
The following page provides details on other Lines of Coverage you may want to consider for your Business or potentially may be required to have contractually to start a project.
Additional Coverage for MO Plumbing Contractors