Underwriting Guide
What Underwriters Ask About Plumbing Contractors
Plumbing contractors carry significant completed operations exposure — a pipe installation error discovered months later can cause extensive water damage to a client's property. Underwriters scrutinize the types of plumbing work performed, whether the contractor holds proper licenses, and the claims history with particular attention to water damage losses.
General LiabilityWorkers' CompensationCommercial AutoInland MarineCommercial Umbrella
Operations
What plumbing work does the contractor perform — residential service, commercial, new construction, or all three?
Why they ask: New construction creates long-tail completed operations exposure. Commercial work may require higher limits and additional insured endorsements.
Does the contractor perform any gas line work?
Why they ask: Gas line installation and repair creates significant explosion and fire liability and is often rated separately.
Does the contractor perform any sewer or septic work?
Why they ask: Sewer work creates pollution liability exposure from sewage backup. A pollution liability endorsement or policy may be needed.
Does the contractor perform backflow prevention installation or testing?
Why they ask: Backflow certification requires specialized licensing and creates a specific type of completed operations exposure.
What is the annual gross revenue split between service/repair and new construction?
Why they ask: New construction is rated differently from service work due to the longer completed operations tail. Revenue split affects the premium calculation.
Licenses & Controls
Is the contractor a licensed master plumber? In which states?
Why they ask: Plumbing licenses are state-specific. Work performed without proper licensing in a state creates a coverage concern and regulatory violation.
Does the contractor use subcontractors? Do they obtain certificates?
Why they ask: Subcontracted plumbing work without certificates creates GL exposure for the general contractor who hired the sub.
What is the contractor's process for testing installations before leaving a job site?
Why they ask: Documented inspection and testing procedures demonstrate risk management and can reduce completed operations losses.
Loss History
Provide 5 years of GL and WC loss runs.
Why they ask: Water damage claims from faulty plumbing installations are the most common and severe plumbing losses. Frequency and severity both matter.
Any water damage claims from completed work in the past 5 years?
Why they ask: Repeated water damage claims from completed work indicate systemic installation quality issues.
Provide driver MVRs for all drivers operating company vehicles.
Why they ask: Service vehicles respond to emergency calls. Driver records affect commercial auto rates and eligibility.
Answers that raise red flags
⚠Gas line work without appropriate limits and documentation of licensing
⚠Multiple completed operations water damage claims
⚠Sewer or septic work without pollution liability coverage
⚠Work performed in states where the contractor is not licensed
⚠No documentation of testing or inspection procedures after installation
Tips for presenting this risk favorably
✓Provide license numbers for all states where work is performed
✓Break revenue into service/repair vs. new construction — they rate differently
✓Document job site testing and sign-off procedures as evidence of quality control
✓Confirm whether pollution liability is needed for sewer and drain work
✓Attach subcontractor certificate collection procedures if subcontractors are used
Collect all this information automatically
AgencyAssist sends your client a plain-English intake link and maps every answer to the correct ACORD fields — including all the questions above.