Water Damage Is Your Primary Exposure
Plumbing contractors deal with water every day. When connections fail, pipes burst, or drains back up, the damage spreads quickly and expensive cleanup follows. Water damage claims are the most common and costly exposure for plumbing contractors.
What Goes Wrong
Failed Connections
A compression fitting that wasn't tightened properly, a soldered joint that looks good but weeps, a flex line that fails under pressure. Connection failures cause immediate flooding and often go undetected until significant damage has occurred.
Frozen and Burst Pipes
California's climate includes cold winter nights in many regions. Pipes in exterior walls, unheated spaces, or improperly insulated areas can freeze and burst. When they thaw, the flooding begins.
Slab Leaks and Foundation Issues
Underground plumbing failures create foundation damage and can go undetected for extended periods. By the time the leak is discovered, repair costs have multiplied.
Mold and Secondary Damage
Water damage that isn't properly remediated leads to mold growth. Health claims from occupants and extensive remediation costs follow. These secondary damages often exceed the initial water damage.
Building Proper Coverage
General Liability
Your policy needs strong property damage limits and robust completed operations coverage. Water damage is specifically what you're insuring against, so make sure your policy doesn't limit or exclude water damage claims.
Products-completed operations matters enormously for plumbers. Claims often arise months or years after work is done. A fitting you installed two years ago fails, and suddenly you're facing a significant claim.
Workers' Compensation
Classification 5183 carries moderate rates. Back injuries from lifting heavy pipes and fixtures are common. Coverage is mandatory if you have employees.
Commercial Auto
Service vehicles need coverage. Tools and materials you transport should be protected. Frequent job site visits increase mileage and exposure.
The Timing of Plumbing Claims
| Problem Type | When Claims Typically Develop | |-------|----------------------| | Connection failures | Days to months after installation | | Drain line issues | Weeks to months | | Slab leaks | Months to years | | Water heater failures | Years after installation |
This timeline means you need to maintain continuous coverage. A gap in your policy could leave you exposed to claims from work done years earlier.
New Construction vs. Service Work
New Construction Plumbing
Projects are larger with higher limits needed. General contractor requirements add endorsement obligations. The longer timeline from rough-in to final connection extends your exposure period.
Service and Repair Work
High customer volume means more individual exposure points. Each service call is a potential claim. Customer interaction skills matter for avoiding disputes.
Mold Coverage Concerns
Many policies limit or exclude mold coverage. For plumbers, this is a significant gap since water damage frequently leads to mold.
Review your policy carefully. If mold is excluded or sublimited, discuss endorsement options with your agent. The premium difference is usually modest compared to the exposure.
Professional Liability Considerations
Design-build plumbing work may require errors and omissions coverage. If you're designing systems, providing engineering calculations, or offering code compliance consulting, standard GL won't cover your professional mistakes.
Documentation Best Practices
Photograph your work before walls close. Pressure test all systems with documented results. Use quality materials and keep records of product specifications. When subcontractors handle portions of work, verify their coverage.
Common Questions
Does my GL cover mold claims from plumbing leaks?
Many policies limit or exclude mold. Review your specific coverage. If mold is excluded, ask about endorsement options.
How long should I maintain completed operations coverage?
California's statute of repose is 10 years for construction defects. Ideally, maintain continuous coverage throughout your career. Tail coverage options exist when you retire or close your business.
What about older homes with galvanized or lead pipes?
Disclose this work to your agent during underwriting. Some carriers have exclusions or surcharges for work on older plumbing systems.