Key points
- General liability is the policy behind the RMP certificate — and the one most plumbing claims test.
- Completed operations coverage matters because many plumbing claims surface after the job is finished.
- Water damage, pollution, and contract endorsements are where policy wording makes the biggest difference.
Commercial general liability (CGL) responds to claims that your business caused bodily injury or property damage to others. For a plumbing contractor, that usually means damage connected to work at a customer’s home or building — and the claims can be large.
How plumbing claims typically arise
- Water damage to the building and contents after a failed fitting, a cracked fixture, or a connection that lets go weeks later
- Injuries at the job site, such as a customer tripping over materials or a hose
- Damage during the work, from cutting into a wall and hitting wiring to a dropped water heater
- Completed operations claims that appear after the job closed and the crew has moved on
Premises/operations vs. completed operations
A CGL policy generally has two sides. Premises and operations covers incidents while you are working or at your locations. Products–completed operations covers claims arising from your work after it’s finished. Many policies carry a separate aggregate limit for completed operations. For plumbers, this side of the policy deserves real attention: a leak that starts six months after installation is a completed operations claim. See completed operations claims.
Water damage: what’s generally covered and what isn’t
Under many standard CGL forms, damage your work causes to other property — drywall, flooring, cabinets, a tenant’s inventory — may be covered, subject to the policy’s terms. The cost to repair or replace your own faulty work generally is not. Some policies add exclusions or sublimits for water damage, mold, or particular types of work, and some contractors’ policies exclude certain residential operations. Two policies with the same limits can respond very differently to the same leak.
Pollution and mold
Most CGL policies contain a broad pollution exclusion. Plumbing work can involve sewage, backflow, mold, and other contaminants. Depending on the policy and the operation, a separate contractors pollution liability policy may be worth considering, particularly for drain, sewer, and commercial work.
Contract endorsements
General contractors and commercial customers commonly require:
- Additional insured status for ongoing and completed operations
- Waiver of subrogation
- Primary and non-contributory wording
- Specific per-occurrence and aggregate limits, often with an umbrella
These are endorsements to your policy. A certificate of insurance can’t create them; the policy has to include them. See when a general contractor requires higher limits.
Subcontractors
If you hire other plumbers or trades as subcontractors, your insurance company will want to know, and will usually expect you to collect their certificates of insurance and contractual protections. Uninsured subcontractors can be charged back to your policy at audit.
How it’s rated
General liability for contractors is commonly rated on payroll or revenue, by classification, with an audit after the policy term. Accurate descriptions of residential versus commercial work, new construction versus service, and subcontracted costs all affect pricing and eligibility.
Common questions
Is $300,000 in general liability enough?
It satisfies the Texas Responsible Master Plumber licensing requirement. For many established plumbing companies, it is not enough for the contracts they sign or the claims they could face. Most commercial work requires higher limits. See why $300,000 may not be enough.
Does general liability cover my employees if they’re hurt?
No. Employee injuries are generally excluded from general liability and handled under workers’ compensation.
Does general liability cover my trucks?
No. Liability arising from owned vehicles is generally excluded and handled under commercial auto.