Plumbers Insurance Requirements by State: A Quick Overview

Keeping up with insurance rules is challenging—especially when plumber licensing is regulated at both the state and local (city/county) levels. Some states (and cities) explicitly require general liability (GL) for a plumbing or contractor license; others don’t—but your GCs, landlords, or permit offices will. 

This guide provides a clear, plumber-focused snapshot, enabling you to meet compliance and protect your business.

What Is Plumbers Insurance & Why It Matters

Plumbers Insurance is a bundle built around Commercial General Liability (CGL)—for third‑party bodily injury, property damage, and advertising injury—and commonly includes tools & equipment (inland marine), commercial auto, workers’ compensation, and, where needed, Contractors Pollution Liability (CPL) and Contractors Professional Liability (E&O). Beyond protection, these coverages are often required by license or contract for plumbing work. 

States & Cities That Explicitly Require GL/COI For Plumbing/Contractor Licensing (Selected)

• Texas – Responsible Master Plumber (RMP): Must file a Certificate of Insurance showing commercial general liability of at least $300,000 for all claims in any one year. You cannot act as an RMP without a current COI on file.
• Oregon – CCB license: GL is required by law; minimum limits depend on your endorsement (e.g., Residential General $500,000 per occurrence; Residential Specialty $300,000; Commercial GC L1 $2M aggregate). Proof of GL is required to hold a CCB license.
• Washington – Contractor registration (L&I): Registration requires a surety bond and general liability insurance of $200,000 public liability + $50,000 property damage or $250,000 CSL.
• Florida – Construction Industry Licensing Board (includes plumbing contractors): Active licensees must maintain GL; most non‑GC categories (e.g., plumbing) require $100,000 liability and $25,000 property damage (GCs/building contractors are higher).
• New York City – Master Plumber: The NYC DOB requires General Liability insurance with a minimum of $1,000,000 per occurrence (plus Workers’ Compensation/Disability Benefits where applicable) for licensure/permits.

Note (California): The contractor license bond rose to $25,000 statewide, and universal workers’ comp for all licensees was pushed to Jan 1, 2028 (SB 1455). California does not mandate GL statewide for all contractors, but municipalities, GCs, and project owners commonly do. 

Workers’ Compensation: The Real “Must‑Have” Once You Hire

Most states require workers’ compensation when you have employees—but not all:

• Texas: Private employers generally aren’t required to carry WC (opt‑out allowed), though notices and other rules apply. 
• South Dakota: No state mandate; strongly recommended because employers can be sued in civil court if a worker is injured. 
• Missouri: WC is required for ≥5 employees (or ≥1 in construction).
• New York: Virtually all employers must carry WC when they have employees.

Commercial Auto Liability: Nearly Universal

If your plumbing business owns vehicles, you must comply with state auto liability laws. As of July 1, 2024, Virginia now requires insurance (ending the “uninsured motorist fee” option), leaving New Hampshire as the only state that does not mandate auto insurance—drivers there must still meet financial responsibility rules. Commercial use generally requires a commercial auto policy. 

State‑By‑State: What You Need to Know (At a Glance)

Requirement Type	What to Expect (Plumbers)	Examples / Notes
General Liability for license	Often required by contractor/plumber licensing boards or cities, amounts vary.	TX RMP: $300k aggregate/yr; OR CCB: $500k–$2M depending on endorsement; WA L&I: $200k/$50k or $250k CSL; FL CILB (plumbing): $100k/$25k; NYC DOB: $1M each occurrence.
Workers’ Comp	Required in most states when you have employees; a few exceptions/opt‑outs.	TX optional for most private employers; SD no mandate; MO ≥5 (≥1 in construction); NY nearly all.
Commercial Auto	Required in 49 states + D.C. (now including VA).	NH doesn’t mandate insurance, but it requires financial responsibility; commercial use generally requires commercial auto insurance.
Bonds	Many states require contractor license bonds (separate from GL).	CA contractor bond $25,000; WA bonds $30k GC / $15k specialty.

Always verify with your state board and local permit authority before bidding or pulling permits—local rules often add additional requirements.

Practical Steps For Plumbers In Every State

1. Check your license board & city: Confirm GL limits, endorsements, and bond amounts (e.g., AI—ongoing & completed ops, primary & non‑contributory, waiver of subrogation).
2. Lock in workers’ comp once you hire—even in “optional” states, civil‑suit exposure can be severe. 
3. Use commercial auto for business vehicles (personal auto policies exclude many business uses). 
4. Consider CPL & E&O if you handle sewage/mold/bacteria risks or provide design/spec/advice that clients rely on. (GL usually excludes pollution and professional errors.) 
5. Bundle smart (BOP for GL+property; add inland marine for tools) to satisfy contracts and control cost.

Frequently Asked Questions

Is Plumbers Insurance legally required anywhere?

Yes—in many places it’s effectively required. Examples: Texas RMPs must file a GL COI with $300,000 coverage; Oregon requires GL for all CCB licensees (limits by endorsement); Washington requires GL for contractor registration; Florida plumbing contractors must maintain $100k/$25k; NYC requires $1M each occurrence for Master Plumbers. Elsewhere, GL may be contractually required by GCs, landlords, or permit offices. 

What GL limits do plumbers typically carry?

A common baseline is $1M per occurrence / $2M aggregate, but follow license and contract minimums (e.g., Oregon’s endorsement‑based limits, NYC’s $1M each occurrence, Washington’s $250k CSL option). 

Do independent plumbers need GL if there’s no state mandate?

Usually, yes, to meet client/landlord/permit requirements and protect against water damage and injury claims; many jurisdictions won’t allow work without a COI on file. 

Is workers’ comp mandatory for solo plumbers with no employees?

Often not—but rules vary. In California, universal WC for all licensees was delayed to Jan 1, 2028 (SB 1455). Once you hire, most states require WC; Texas and South Dakota are notable exceptions. 

Does GL satisfy auto requirements?

No. GL does not cover vehicle liability. Business vehicles require commercial auto, and as of July 1, 2024, Virginia now mandates auto insurance (leaving New Hampshire as the outlier requiring financial responsibility instead). 

Secure Plumbers Insurance With Confidence

GL might not be universally mandated by state statute, but for plumbers it’s often required by licensing or contracts—and it’s essential protection against costly water‑damage and injury claims. Pair it with workers’ comp (when you hire), commercial auto, and the right endorsements/bonds to stay permit‑ready across states.

Crossing state lines or taking bigger jobs? Get tailored guidance and quotes from Plumbers Insurance US, ensuring your coverage aligns with your board, contracts, and risk profile—no guesswork needed.