Key points
- Start with what the law and your license require, then build up to what your business and contracts need.
- Most established plumbing companies carry five or six coordinated policies.
- The right program depends on your work mix, fleet, employees, and contracts.
There’s no single answer, because a two-truck residential service company and a forty-person commercial plumbing contractor have very different needs. But the building blocks are the same.
Level 1: What’s required
Commercial general liability for the RMP. The Texas State Board of Plumbing Examiners requires a Responsible Master Plumber to maintain at least $300,000 in commercial general liability, documented on the Board’s own certificate form. See RMP insurance requirements.
Auto liability. Every vehicle must meet Texas financial responsibility requirements — and business vehicles should be on a commercial auto policy, not a personal one.
That’s the floor. Almost no established plumbing company should stop there.
Level 2: What an established company typically carries
- General liability with limits that match your contracts, often $1,000,000 per occurrence and $2,000,000 aggregate, with attention to completed operations and water damage.
- Commercial auto for every truck and van, with appropriate liability limits, physical damage on newer units, and hired and non-owned auto.
- Workers’ compensation for employees. Texas allows most private employers to opt out, but most established plumbing contractors with commercial work carry it.
- Tools and equipment coverage for what travels in the trucks.
- Commercial property if you have a shop, warehouse, or inventory.
- Umbrella or excess liability above general liability, auto, and employer’s liability.
Level 3: Depending on your operations
- Contractors pollution liability for sewer, drain, mold, and backflow exposures
- License and permit bonds or contract bonds for public and commercial work
- Employment practices liability as headcount grows
- Cyber liability if you store customer payment and personal data
Questions that shape the answer
- What percentage of your work is residential service, residential construction, and commercial?
- How many vehicles and drivers do you have, and do vehicles go home?
- Do you use subcontractors?
- What do your largest contracts require?
- What does your loss history look like over the past five years?
Answering these honestly is the first step in any insurance review.