New York Plumber Insurance

General Liability Insurance

The foundation of your insurance program. General liability covers claims of bodily injury or property damage arising from your business operations. For plumbers, this includes damage or injuries occurring while you are actively working on a jobsite—such as accidentally damaging a customer's flooring, causing a water leak that damages adjacent rooms, or a visitor tripping over your equipment and materials.

Standard limits are typically $1,000,000 per occurrence / $2,000,000 aggregate, though contracts may require higher limits.

Products & Completed Operations

This is arguably the most critical coverage for plumbers. Completed operations covers claims that arise from work you have already finished and turned over to the customer. If a pipe joint you installed six months ago develops a slow leak behind a wall, causing extensive water damage, mold growth, and structural deterioration, completed operations coverage may respond to the claim. Water damage is uniquely dangerous because it can go undetected for extended periods, compounding the severity of the loss.

Important: The coverage typically pays for resulting damage (water-damaged walls, floors, and belongings) but not the cost of redoing the defective plumbing work itself.

Workers' Compensation

Mandatory in New York for virtually all businesses with employees. Workers' comp covers medical expenses and lost wages for employees injured on the job. Plumbing work involves risks of burns from soldering and hot water, cuts from tools and sharp pipe edges, back injuries from lifting heavy fixtures and equipment, falls, and exposure to hazardous materials in older buildings.

Plumbers are typically classified under workers' comp code 5183 (plumbing), with rates reflecting the inherent risks of the trade. Learn more about NY Workers' Comp

Commercial Auto Insurance

If you use vehicles for your plumbing business—whether work vans, trucks, or personal vehicles used for business purposes—you need commercial auto coverage. This covers liability for accidents as well as physical damage to your vehicles. Plumbing contractors often rely heavily on service vehicles that carry tools, equipment, and materials. Personal auto policies typically exclude vehicles used for business purposes.

Inland Marine / Tools & Equipment

Your tools, pipe-cutting equipment, drain cameras, soldering equipment, and materials are essential to your livelihood. Inland marine insurance covers these items against theft, damage, and loss—whether stored at your shop, in your vehicle, or on the jobsite. Tool and equipment theft is particularly common for plumbing contractors, as service vehicles loaded with valuable tools are frequent targets. Standard property policies may not cover tools and equipment used at various locations away from your premises.

Commercial Umbrella / Excess Liability

Provides additional liability limits above your general liability, auto, and employers liability policies. Given the potential severity of water damage claims—which can involve structural repairs, mold remediation, and displacement costs—and the impact of New York's Scaffold Law on fall-related injuries, many plumbing contractors carry $1 million to $5 million in umbrella coverage. Some general contractors require minimum umbrella limits.

Pollution Liability

Standard general liability policies typically exclude pollution-related claims. For plumbers, pollution liability is particularly important because your work can involve sewage backups, contamination from broken or leaking sewer lines, exposure to lead pipes in older buildings, and accidental discharge of wastewater. A pollution liability policy may cover cleanup costs, regulatory fines, and third-party claims arising from these events. This is a coverage that many plumbing contractors overlook but may be critical for their operations.

Type of Plumbing Work

Residential, commercial, and service/repair plumbing each carry different risk profiles. New construction typically involves higher exposure than service and repair work. Commercial plumbing—especially work in multi-story buildings or large-scale projects—may carry higher premiums due to larger potential losses and more complex operations.

Revenue and Payroll

General liability premiums are typically based on your annual revenue, while workers' compensation is based on payroll. Higher revenue and larger payrolls mean higher premiums, but they also reflect a larger operation with more exposure.

Claims History

Your loss history significantly impacts your premiums. Water damage claims can be particularly costly due to the potential for hidden damage and mold remediation. Maintaining a clean claims record through quality workmanship and proper installation practices is one of the most effective ways to control insurance costs.

Subcontractor Management

If you hire subcontractors, insurers will evaluate how you manage their insurance requirements. Requiring certificates of insurance and additional insured endorsements from all subcontractors demonstrates good risk management and may favorably impact your premiums.

Plumber Licensing in New York

Unlike some states with uniform statewide licensing, plumber licensing requirements in New York vary by municipality. Many cities and towns—including New York City, Buffalo, Rochester, and Syracuse—require plumbers to hold a local license, pass examinations, and meet experience requirements. Some municipalities may also require proof of insurance and bonding as a condition of licensure. Always check with your local building department for specific requirements in the areas where you work.